February Edition 2023

16 in tax revenue. In January 2023, Israel announced its intention to create a R&D fermentation hubtomaintainitsedgeinFoodtech,withtheIsrael InnovationAuthoritycalling for proposals budgeted at NIS 50 million to build local R&D infrastructure for the production of alternative proteins. As Rom of Gornitzky points out: “The development and investment in such fields are no longer an option but a necessity. I expect that government support in the field will increase significantly and more specialized funds which understand the nature of the fields will join the ecosystem.” “As many Foodtech companies tend to integrate and implement several technological disciplines, I believe the market will become more cooperative in nature and the search for synergies and as well as in and out licensing of technology will become a fundamental need for many start-up companies operating in this sector,” added Karplus of Shibolet. “Food and AgTech funding may be down year-over-year, but it remains historically high, and we believe it will stabilize,” says Fuss of Taylor Wessing. “Considering a rising focus on ESG topics and a political focus on food security a lot of countries are looking to attract innovation and investments in the Food and AgTech sub sectors. Therefore, we expect that the market will continue to grow.” Agreement seems almost universal on this point. As stated by Amir-Yaniv of Arnon, Tadmor-Levy: “the Foodtech and AgTech industries are constantly growing and maturing. In spite of the obstacles – some of which are common to the broader hi-tech industry - we are witnessing a positive pattern in the expansion and development of these industries. The increased global focus on climate change and sustainability practices together with the uniqueness of Israeli innovations is driving the industry forward.” Many of the innovative companies and investors referenced are likely to be among attendees and exhibitors at the AgTech Israel Conference in Tel Aviv on May 2-3 2023. ‘Investment now a necessity’