Q3 2023 AgTech Venture Capital Investment and Exit Round Up
Last quarter, our analysis of Crunchbase data shows 146 AgTech startups raised a total of $1.5B, writes Kyle Welborn at CropLife. This represents a 6% decrease in funding and a 42% decrease in deals from Q2 2023. There were seven AgTech exits last quarter, all through M&A transactions.
Key Takeaways from Last Quarter
Unlike the first two quarters of this year where the number of deals had been growing, Q3 saw that trend snap with a sharp decrease in the number of startup financings. Notably, every one of the 12 AgTech categories we monitor experienced a decline in the number of deals compared to the previous quarter.
While the total investment amount remained relatively stable compared to the first two quarters of 2023 (with $1.4 billion in Q1 and $1.6 billion in Q2), this stability was primarily due to a limited number of substantial financings, including Indigo’s $250 million venture round.
Over the first three quarters of this year, AgTech startups have secured $4.6 billion in funding. In comparison, they raised $10.7 billion last year and $12.2 billion in 2021. In 2023, AgTech startups are trending towards venture investment levels like those in 2020 when the global economy was disrupted by COVID-19.
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AgTech Venture Investments
Below is a breakout of the deals and dollars that flowed to different sectors of AgTech last quarter:
The biggest increase in total investment dollars quarter-over-quarter was in the waste reduction and repurposing sector where startups raised $132M more than they did in Q2 2023. The largest category drop in total investment dollars was in the alternative protein sector where startups raised $355M less than in Q2 2023. The average AgTech investment round last round grew to $10.3M, up from $6.45M in Q2 2023.
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