Agtech Funding Is Rebounding. Which Startups Attract Investors?
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Investments injected into agtech startups may have cooled since 2020 and 2021, reports Agriculture Dive, but venture firms are still eyeing certain sectors and companies as the investment space looks to rebound and corral more VC interest.
In Q3 of 2023, deal values in the U.S. agtech industry improved 19.1% quarter-over-quarter, according to a Pitchbook report. That rebound was sorely needed after a dismal 2022: Around $29.6 billion was invested into agtech startups, globally, that year, down 44% from $53.2 billion in 2021.
Looking ahead, the agtech market will soar in five years from the 2020 figure of $9 billion to $22.5 billion, a compound annual growth rate of 20%.
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But what are investors looking for in agtech companies and how vital has outside funding become for startups seeking to grab a foothold in their respective markets? Agriculture Dive spoke to several investors and startup founders to learn more about the past, present and future of the VC ecosystem in agtech.
Alternative proteins down, AI tech on upswing
Shubhang Shankar, managing director and portfolio lead at Syngenta Group Ventures, said 2021 was a banner year for all agtech categories, but recently some of those areas have cooled.
He notes how indoor farming and alternative protein firms were reeling in investment dollars but aren’t surging as they did two years ago. Consumption habits didn’t shift as drastically as expected.
Read more at Agriculture Dive.
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