2020 will be a tremendous year for AgriFood tech investment. According to Finistere, 2020 has already exceeded 2019’s record-breaking totals. As of the end of Q3, AgriFood tech startups raised $ 11.6B in funding in 2020, bringing the investment total from 2010 through Q3 2020 up to $ 46.4B.
AgriFood venture pioneer Finistere Ventures unveiled the latest findings of its continuing AgriFood Tech Investment Review series, confirming that 2020 will be a tremendous year for AgriFood tech investment.
Digital ag consolidating
“The flow of capital is shifting as the market matures. While more investment dollars pour into advanced crop protection technologies, indoor farming, alternative proteins, food delivery, and supply chain advances, investment in mainstays like digital ag is consolidating as leaders start to emerge. The investment boom in this sector will help drive a healthier, more sustainable food and ag ecosystem,” noted Arama Kukutai, co-founder and partner, Finistere Ventures.
Developed in collaboration with PitchBook, key findingsfrom the report include:
- AgTech investment totaled $ 3.07B in the first three quarters of 2020 (total capital invested in 2019 was $ 2.7B)
- FoodTech investment totaled $ 8.37B in the first three quarters of 2020 (total capital invested in 2019 was $ 7B)
- Majority of capital invested in both sectors went to later stage deals – demonstrating increasing market maturation
- In the AgTech arena, indoor ag players benefited most from Covid tailwinds tied to supply chain insecurity and demand for fresh produce
- Likewise, in FoodTech, startups in e-commerce delivery and meal kits benefited most from Covid concerns
Lot of room for further growth
“With more than $ 46B of venture capital flowing into ag and food advances over the past decade, AgriFood tech has become a focus of tremendous investor interest. As COVID shone a light on some of our food and agricultural production system fragilities that need strengthening, capital flowed in to support the trend to dine at home,” continued Kukutai.
“While substantial progress has been made, there is still a long way to go. The investment trend we are seeing is long overdue in a massive sector that has been under-invested, and there is a lot of room for further growth. Building a sustainable ag and food ecosystem is absolutely critical, and it will take a lot of time and more capital.”
The report also provides a comprehensive look at which sub-sectors (e.g., food delivery, meal kits, alternative proteins, crop protection, indoor ag) earned the most investor interest, highlights the top 2020 AgTech and FoodTech deals thus far, breaks out investment trends by region, and evaluates exit values.