Agtech Venture Capital Investments End 2023 on ‘Sour Note’
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Agricultural technology funding significantly slowed in the fourth quarter as companies weathered operational and market challenges, Pitchbook reported Monday, ending the year on a “sour note.”
Venture capital activity totaled $1.4 billion for agtech firms, down 35% from the third quarter, according to the Morningstar capital market subsidiary. Deal counts reached 181, down 17% from the same period.
Despite a fourth-quarter rally in most global public indexes, Pitchbook noted broader challenges impacting agtech deals. Private markets continued to face a challenging exit environment, the IPO window has not yet reopened and interest rates remain elevated, discouraging M&A.
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“However, in the near term, we expect agtech to outperform the broader VC asset class,” Pitchbook senior analyst Alex Frederick wrote in the report. This is due in part to the global issues the sector tackles to maintain food security and food sovereignty, such as climate change, geopolitical conflict, and labor shortages.
Although overall funding declined, a few notable deals took place in the fourth quarter. E-commerce provider Farmers Business Network raised $154.9 million to support its agribusiness marketplace farm management software. The agribusiness marketing category saw the highest deal value, followed by drones and imagery analytics.
Read more at Agriculture Dive.
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