Festive agrifoodtech vox pop part 2: From funding blues to bird flu, what keeps startups awake at night as we head into 2025?

As we approach 2025, what is keeping agrifoodtech startups awake at night? To find out, foodtech editor Elaine Watson fired off a few emails to companies she’s covered on AgFunderNews this year (apologies if you weren’t contacted, next year this will be more systematic 😉) to get a sense of what is disrupting their sleep.

The funding environment and regulatory hurdles were high on the list for our respondents [disclosure, several founders below are portfolio companies of AgFunder, AgFunderNews‘ parent company], but other things were also top of mind, from bird flu to tariffs, to political instability.

If you’re feeling depressed, check out yesterday’s vox pop, which was all about what founders and CEOs are excited about as we head into 2025…

Christie Lagally, founder and CEO, Rebellyous Foods: I’m closely watching the spread of bird flu, and its rapid spread in US dairy cows, chickens, and now humans. While devastating and terrifying, the spread of this disease gives alt-meat producers the opportunity to show we can produce high-volume, quality products for mainstream consumption without the risk of causing a full-blown pandemic. The role of the alt-meat industry is not just to provide great products, but to establish scaled sustainable, climate-friendly and pandemic-proof production.

Magi Richani, founder and CEO, Alpine Bio: What keeps me up at night is the ‘overcorrection’ taking place in the food and agtech space. It’s true things were overhyped in 2021, and expectations needed recalibrating around time to market and growth. However, we’ve now swung too far in the opposite direction. This is actually the best time to invest in this space. The investors who are writing checks today are the ones who will reap the greatest rewards tomorrow. Unlike AI agents or dog-walking apps, transforming our food system is essential for our survival on this planet—and ultimately, the largest returns on investment will come from solving existential problems.

Naveen Sikka, founder and CEO, Terviva: The funding environment is still tough but improving, and again continues to be driven by interest from corporates and later-stage investors. Among other factors, what’s made the agtech sector successful has been the ability to pivot our technologies to adapt to changing market conditions. This need to pivot is something that venture investors inherently understand, but I do worry that corporate and late-stage investors will have less tolerance for such pivots, as necessary as they are to adapt ag technologies to specific regional market conditions and customer needs. We need to continue to encourage corporates and later stage investors to take a broad view in terms of timelines and mutability of our technologies.

John Diener, cofounder and CEO, Vertical Oceans: The situation in the Middle East and the potential for a significantly different trade regime under the new US administration creates significant supply chain uncertainty. While it may not be as bad as the COVID chaos of 2022, it has the potential to disrupt every industry. 

Max Jamilly, cofounder and CEO, Hoxton Farms: Deglobalization and short-sighted protectionism will increase food prices and make our fragile food supply even more exposed to catastrophes like flooding or disease. 

Jeffrey Dietrich, founder and CEO, Rarebird: What keeps me awake at night is the growing sense that we’re entering a period of heightened instability—politically, environmentally, and culturally. It’s a bit like the chaos theory idea in Jurassic Park, where small shifts in complex systems can lead to unpredictable and outsized consequences. Whether it’s the uncertain effects of climate change, rapidly evolving AI, or shifting geopolitical dynamics, it feels like we’re in a moment where the stakes are higher and the outcomes harder to foresee. So, my concern isn’t just about the uncertainty of what lies ahead but the speed and magnitude with which these changes could reshape industry, society, and more directly, my company.

Omer Davidi, cofounder and CEO, BeeHero: As the world’s largest pollination provider, scaling rapidly comes with its own set of challenges. Transitioning from a compelling vision that captures investors’ imagination to the tangible reality of growing the company and expanding into new areas requires hiring the right people—those who align with our culture, are driven by genuine partnerships with our customers, and are committed to proving that things can be done better. Most importantly, it’s about ensuring we operate as one company, united by shared values and mission. While this might keep me up at night, my two-year-old is proving to be even better at that job! 🙂

Dr. Steve Meller, cofounder and CEO, CH4 Global: The things that keep me awake are the ever-changing political and consumer sentiment to climate impact in the food chain. For us, the recent Bovaer/Arla flurry has been a good example of this. The other is access to project financing to build scaled facilities to meet demand; this is always a challenge when you’re building a first-of-a-kind business.

Paul Shapiro, cofounder and CEO, The Better Meat Co:A lot of food tech founders in this dry capital environment are beating their heads against the wall with the conviction that the wall will break before their heads do. That said, deals are still getting done, and important technology is still being developed. Despite the headwinds, I’m still convinced that the best way to satiate humanity’s demand for protein is to go big with microbial farming. 

Jen Keane, cofounder and CEO, Modern Synthesis: We are waiting to see how political changes in the UK and US will affect non-dilutive funding. Also policy will be critical in the speed of transition to more sustainable materials. We hope fashion brands will remain committed to their impact goals regardless but wait in anticipation to see the direction of policy makers globally. We look to Europe for climate leadership in the meantime. 

Stephan van Sint Fiet, CEO, Vivici: I would like to see more successful consumer product launches with proteins from fermentation. A clear focus on sound consumer value propositions will remain key for that to happen.

Dr. Jason Prapas, founder and CEO, FYTO: What keeps me awake is securing capital and strategic partners who embrace hardtech and deeptech to build a better world.

Louise Parlons Bentata, cofounder and CEO, Bluemethane: 30% of global warming is contributed to methane, and yet methane receives less than 1% of climate finance. The carbon markets for methane are nascent, even further behind than CO2.

Jan Pacas, founder and CEO, All G: What keeps me awake is the current funding environment which has been challenging to say the least. Until All G achieves profitability and becomes self-sustaining, we continue to rely on external investors, a reality that comes with its own pressures.

Nusqe Spanton, founder and CEO, Provectus Algae: The funding environment remains extremely challenging for deep tech companies. We expect to see many more companies with great fundamental technology go bankrupt due to the difficulties in raising capital. It is and will continue to be vitally important to have teams with the capabilities to execute and grow businesses in this environment.

Alan Perlstein, founder and CEO, California Cultured: The biggest worry for us is to keep up with all the demand that’s currently out there. There are a lot of companies knocking on our door, and we need to grow fast enough to keep up.  

Etienne Vassiliadis, cofounder and CEO, Vivagran: What keeps me awake is regulatory uncertainty, climate change risks, gaining market traction, and funding and scale-up. The current funding environment for agri-food startups is challenging, and balancing growth with cash flow management is crucial.

Dr. Amit Kumar, and Dr. Sheetal Sinha, cofounders, BioDefense: The grim funding environment top the list. That said, we are optimistic and confident that we are quite close to checking all the right boxes to secure funding soon. Navigating regulatory landscapes in different markets presents another formidable challenge, but we are proactive and confident in our ability to address it effectively.

Frank Jaksch, CEO, Ayana Bio: With a new administration taking office in early 2025 and the potential appointment of Robert F. Kennedy Jr. to lead the Department of Health and Human Services, there is a lot for the food, beverage, and supplement industry to consider in the next few years. For instance, ultra-processed foods (UPFs) are already faced with increased scrutiny, and RFK Jr. might intensify these efforts by imposing strict guidelines or regulations. While banning UPFs seems impractical, given they are a necessary evil, a more optimistic outlook is seeing UPFs enhanced with health-beneficial bioactives and nutrients. This shift offers a major opportunity for innovation and growth in the coming years.

Dr. Gabe Sibley, cofounder, Verdant Robotics: What keeps me awake is making sure AI-driven precision and robotics aren’t just for the biggest farms. All growers want to cut costs, boost yields, and stay profitable, so we strive to make our products robust, cost-effective, and practical.   

Marc Bolard, cofounder, Nasekomo: Scaling up insect protein production is inherently complex, involving biological processes with countless variables and dependencies. While technology helps us manage this, external factors such as evolving regulations, geopolitical uncertainties, and fluctuating funding environments add layers of unpredictability.

Tal Govrin, cofounder and CEO, Kokomodo: 2024 has been the year where cacao prices reached a 45-year high. Our challenge isn’t finding a market—it’s determining how rapidly we can scale to meet exponential demand. The reality is that there’s a shortage of available scale-up facilities capable of accommodating our specific production needs in plant cell culture, making scale-up a challenge.  .

Somsubhra Gan Choudhuri, cofounder and CEO, Ai Palette: What keeps me up at night is the balance between opportunity and responsibility. Ensuring data authenticity while managing AI’s potential, navigating a challenging funding environment amid global economic volatility, adapting to ever-evolving regulations, and keeping pace with rapidly shifting industry demands are constant challenges. At the core, it’s the weight of Ai Palette’s mission—empowering brands with insights that are not only actionable but trustworthy—that drives us forward.

Dr. Yuval Gilad, cofounder and CEO, FreezeM:  What keeps us awake at night is the challenge of scaling up operations quickly while maintaining exceptional product quality. Beyond our business challenges, as an Israeli startup and global citizens in 2024, we are deeply affected by the ongoing war. We hope for a swift end to the conflict and for the safe return of the 101 Israeli hostages still in captivity in Gaza.

Jim Laird, CEO, ENOUGH Foods: Both as a sector, and as a company, we still have a lot to do to start the protein transition. What keeps my focus at all times is ensuring we do what is needed to meet customers’ needs, and right now that means producing higher volumes and building the scale that is very much needed.

Dr. Greg Wanger, founder and CEO, Oberland Agriscience: From a production standpoint, it takes a long time to become a registered supplier of a product that is already approved for use in Canada. This puts a huge financial burden on companies. Oberland would welcome the opportunity to engage more with the government and help streamline a more efficient process for both the industry and the regulators.

Michelle Ruiz, cofounder and CEO, Hyfé: What keeps me up at night is reduced VC appetite for capex-intensive businesses and the challenges related to getting corporates to sign offtake agreements in this economic environment. 

Robin Simsa, CEO, Revo Foods: What keeps me awake at night is how the alternative protein field will progress. Many things have been tried and tested, and it is a big question what innovations will really help to achieve a bigger switch from consumers.

Dr. Michael Kagan, cofounder, ReaGenics: What really keeps me awake is that because of the current crunch on funding, building large scale facilities will be delayed and with it solutions that we are offering to help relieve the strain on the food supply chain could be delayed to the detriment of humanity and the planet.  

Dr Tzvi Grisha Zvirin, cofounder and CEO, BioArmix: The unprecedented challenge of feeding humanity despite the immense obstacles we face, such as loss of crop yields and climate change keeps me awake at night. To achieve this, regulators and industry must act faster and not hold back innovation, our only chance to succeed in that mission.

Rajat Bhageria, founder and CEO, Chef Robotics: Given the “hair on fire” problems our customers face around labor shortage, it feels like our challenge is less about “demand” but rather “supply” and execution on product to meet demand. Externally, what’s top of mind for me is hiring and our ability to continue to hire the very best people in Silicon Valley talent pools, especially with the more recent hype cycles and sky-high valuations in AI.

Amos Golan, founder and CEO, Chunk Foods: What keeps me up at night is deciphering the product innovation, organization and operation required to drive US consumers towards regular consumption of plant-based products, at home and out of home. It’s a delicate balance between product innovation that addresses real needs and consumption occasions, operational efficiency, sufficient funding, and creating consumer accessibility across verticals. I believe it’s vital for our industry to remain realistic and focused on building a truly competitive and lasting food ecosystem.

Ankit Alok Bagaria, cofounder and CEO, Loopworm: Strategies to increase sales volume, secure better realization for our products in the market and ensuring funds and resources for my team keep me up at night. 

Jonathan Goshen, cofounder and CEO, Yeap: Aside from the general fund-raising atmosphere, I would say that customer adaption – bringing new protein to the market, understand its benefits and the ability to succeed adding/replacing it in the customer end products – is the biggest challenge. We will succeed here – we will be able to raise money. In Yeap we already have a few onboard, but we are after more