Exploring our Ecosystems: The Illinois and LA County Food Tech Landscape
Earlier this summer, we began mapping the key players in the food tech sectors of Illinois and LA County—locations where our firm is co-headquartered. Our goal was to gain a deeper understanding of these ecosystems by exploring critical questions, including:
Start-Up Landscape: How many start-ups operate in our ecosystems, and what categories do they represent?
Funding Trends and Innovation: Which types of start-ups are receiving funding in each market, and where is innovation driving technological breakthroughs?
Founder Demographics: Who are the founders securing funding, and how do their demographics compare to the national average? This insight helps us identify overlooked opportunities and untapped ‘alpha.’
Market Leadership Insights: What are industry leaders in these regions saying about the future of food tech?
Ecosystem Support: Which corporations, start-up hubs, and organizations are actively fostering growth in the space?
Later-Stage Successes: What categories of start-ups have achieved later-stage funding or successful exits in these markets?
These questions and more form the foundation of our latest reports, which offer a comprehensive view of the food tech landscape.
Read the report findings and highlights below, and find the full reports here (Illinois and LA County).
Illinois Food and Ag Tech Ecosystem Findings
Illinois boasts a vibrant Food and Ag Tech ecosystem featuring approximately 360 start-ups, 10 Fortune 500 companies, 15 accelerators/incubators, and 10 key ecosystem players. This is supported by a robust investment community, with over 440 private equity and venture capital firms actively funding innovation in the state.
Key Insights from Our Analysis
Start-Up Landscape:
Food Tech dominates Illinois’ Food and Ag Tech start-up scene, representing 75.7% of ventures, with a strong focus on food production.Opportunities for Growth:
Significant white space exists in cold chain innovation, animal agriculture, and sustainable packaging—areas where demand outpaces the current start-up presence.Investment Trends:
Supply Chain Tech and SaaS have attracted the highest investment across all verticals, reflecting strong investor interest in scalable solutions.
Unicorns:
Of the 19 unicorns founded in Illinois, five operate in the Food and Ag Tech sector, while four focus on logistics and supply chain technologies.
Diversity and Inclusion
Illinois demonstrates a higher-than-average representation of Hispanic/Latinx, Asian, and Black CEOs compared to national figures. The state also leads the nation in growth for female-founded deal values. However, achieving true gender parity remains a distant goal.
Emerging Trends
Traditional venture capital activity is growing, but corporate venture capital (CVC) engagement in Food and Ag Tech is declining.
From 2023 to 2024, exit activity slowed, and start-up closure rates increased, particularly in the Food Tech and CPG sectors.
Illinois continues to evolve as a hub for Food and Ag Tech innovation, with opportunities for growth and diversification across underrepresented verticals.
Southern California Food and Ag Tech Ecosystem Findings
The Los Angeles County Food and Ag Tech Ecosystem is a dynamic convergence of industries, cultures, and talent, with unique intersections in shipping, healthcare, space tech, entertainment, and agriculture fueled by the Port of Los Angeles and California’s Central Valley. This report provides a detailed analysis of the ecosystem from 2010 to 2024, highlighting key sectors, investment trends, and future growth opportunities that position Los Angeles as a global leader in food and ag tech innovation. Key report highlights include:
Ecosystem Growth:
Since 2010, the LA County start-up ecosystem has grown dramatically, with company formation peaking at a 10x increase in 2020. While formation rates have slowed in recent years, the ecosystem still produces three times as many companies and completed deals annually compared to 2010.Sector Highlights:
CPG & Food Tech: The most active sectors since 2010, driven by innovations in food, beverages, desserts, functional foods, and alternative proteins.
Restaurant & Retail Tech: Attracted the majority of start-up funding, primarily due to two major investments in unicorn company CloudKitchens. These deals rank among LA County’s largest across all industries between 2010 and 2024.
Innovation Leadership:
LA is a premier testing ground for new product innovations and health-focused brands. Local innovators, such as Erewhon Market, shape food trends that influence consumers both regionally and nationwide.Supportive Ecosystem:
A strong network of investors, universities, accelerators, nonprofits, and technical talent fuels LA’s robust ecosystem. Proximity to institutions like UCLA—known for groundbreaking food-as-medicine research—and access to industry-defining events like EXPO West provide unparalleled opportunities for entrepreneurs to connect with customers and fresh ideas.
Los Angeles County continues to be a fertile ground for innovation, making it an ideal location to launch and scale ventures in Food and Ag Tech.