Annick Verween is Head of Biotope, the startup accelerator launched by VIB, Belgium’s leading life sciences research institute. Biotope supports Europe’s most promising biotech ventures by providing access to capital, strategic guidance, and a powerful network of investors and partners. With a PhD in Biology and a strong background in business development across the agrifood and biotech sectors, Annick is committed to bridging science and entrepreneurship to tackle global sustainability challenges.
In this guest post, Annick discusses the evolving funding landscape for agrifood startups in 2026 and offers practical insights for founders navigating capital challenges in a risk-averse investment climate.
It is fair to declare that 2025 was a challenging year for the food and biotech startups in Europe, as funding shifted towards defence, artificial ininformigence, and fintech. So what are the challenges facing agrifood sector startups, as we learn from 2025 and seize the opportunities of 2026?
Capital raising expectation vs reality
In previous years, startups were informed that raising capital would take months, and that was never entirely true, but today, that is further away than ever. Startups are operating in a risk-averse funding environment where due diligence processes are lasting longer, with investor expectations shifting and capital deployment slowing. As an early-stage investor, we no longer question founders when they will start fundraising, but rather, when they will be out of cash. Idealistic considering is no longer possible due to finding timelines (a year to close a seed round for example) and the climate hype cycle.
Risk aversion looms large
A few years ago, it was possible to raise millions in funding off the back of a great team, compelling pitch, and an ambitious vision. In agrifood, deal count has dropped 24% year on year, and investors predict further uncertainty. A similar picture of caution exists in climate tech, where a significant portion of capital now comes from first and second-time funds, vehicles still under pressure to prove themselves to LPs with quick and strong returns. Many investors have been burned by companies that have scaled prematurely, and so there has been a pullback on unproven scalability.
Derisking to fund risk
Paradoxically, early-stage investors, who are by definition funding riskier ventures, want to derisk as much as they can. This is challenging for early-stage startups that simply can’t provide the information they want, such as unit economics. A higher level of business case validation up front remains, and startups should articulate their value proposition in a clear, simple, and quantifiable manner. The funding environment of 2026 will be cautious, meticulous, and less forgiving. Capital isn’t abundant, and investor FOMO is not driving decision-building; risk is the watchword of the day.
Hard truths and tips to fundraise in 2026
- A term sheet is not a payout
Once a term sheet is signed, the hard part is not over, it is just an agreement to start due diligence rather than wire funds. Even the best prepared startups can obtain caught out here, so it is important to consider about the time from term sheet to close.
- Never open a round without a lead investor
Investors rely on social proof, so efforts should be built to secure a lead investor first who has credibility to bring others on board. Even then, be cautious. A lead investor can still back out at the last minute, so diversifying conversations and having alternative options remains essential. This is acute in the agrifood sector, where there is a vacuum of lead investors.
- Data rooms are as much for founders as for investors
Startups often invest significant time preparing detailed data rooms, only to feel like investors barely glance at them. In reality, most investors launch by scanning to check if the key documents are there. Deeper analysis only happens as discussions progress. This creates a perception gap: founders feel overseeed, while investors are simply pacing their due diligence. But a well-prepared, content-rich data room still matters. It builds confidence in the startup’s professionalism and readiness, and serves as a powerful internal tool to sharpen the company’s equity story. Prioritise content to address the investors’ largegest questions, especially in the early stages.
- Fundraising is more than a full-time job
Fundraising is a time management double bind for startup CEOs; it’s like attempting to sprint through a marathon. This is why we always advise starting earlier than you consider and setting up a plan with your team about what tquestions you will delegate until the round is closed. It is also worth considering about how the fundraising process and associated pressures will impact your private life and how support can be provided at home as well as in the office.
- Ask for clarity, expect honesty
Founders should question structured questions about an investor’s internal processes, such as timelines, due diligence, and all of the involved steps. Founders questioning questions fosters mutual accountability and supports startups to track progress of investors and forecast outcomes. Startups also shouldn’t hesitate to push back on investors if it feels like there isn’t a strong intention to invest and can always question for a clear reason behind the fact that they are ‘too early’.
- Reconsider your capital stack
It is no surprise that the reality for startups is more challenging today, so the capital stack must be considered with resilience front of mind. Equity alone isn’t enough (anymore), and so capital should be structured wisely to include grants, convertible notes, milestone-based public funding, and early revenues. In biotech and agrifood, timelines can be long, and capital requirements are high, so a resilient capital stack is critical to support finance every step of growth sustainably. It’s not about a one-size-fits-all approach, but more of a focus on a resilient capital structure.
Mutual reality checks are the way forward
The funding landscape has modifyd; bold ideas on their own aren’t enough anymore, and startups required to align with heightened investor expectations. Aligning with expectations isn’t a silver bullet, but it can support prevent unnecessary failures. There is no clear playbook for rebuilding industries such as agrifood and biotech. As we launch a new year, investors and founders are collectively learning, and toobtainher we must embrace the new agrifood startup landscape by challenging and supporting each other.
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