We aren’t a big enough fund to finance a startup forever, and we depend on later-stage investors, so this attention and resulting influx of capital helps remove some risk from our portfolio. If you are making the food system more effective and efficient, you are making it more sustainable. Agtech is not as mainstream as many other sectors, so we need more eyeballs and capital. Investors understand that this challenge creates an opportunity. It is a huge reason deal value skyrocketed in 20. How has the climate crisis changed how you invest? In the long run, the sector has a tremendous amount of opportunity and room for innovation, so with time, you will see continued growth and investor focus on agtech.Īgriculture is responsible for about a quarter of global GhG emissions. It’s not going to continue in the short run largely because of macroeconomic factors you’re just not seeing - for example, many late-stage deals are going through recently - so in the short term, definitely not. Camila Petignat, partner, The Yield Labīrett Brohl, managing director, Techstars Farm to Fork, and managing partner, Bread and Butter VenturesĪgtech VC deal value rocketed from $6.5 billion in 2020 to $11.4 billion in 2021.Ting-Ting Liu, investor, and Ashutosh Sharma, India head, Prosus Ventures.Adam Anders, managing partner, Anterra Capital.Jinesh Shah, managing partner, Omnivore.Monica Varman, partner, G2 Venture Partners.Brett Brohl, managing director, Techstars Farm to Fork, and managing partner, Bread and Butter Ventures.To gauge whether (and how) VCs are responding to these issues and more, we reached out to: The disparity has only worsened so far in 2022, rising to 81% (out of nearly $7.3 billion) as of September 14, per the data firm. Out of the nearly $11 billion dispensed into agtech in 2021, 78% went to firms with all-male founders, according to PitchBook. “Over the medium to long term, however, I do expect agtech VC funding to grow, given supply chain challenges, traceability concerns and advancements in enabling technologies in synbio and robotics,” she added.Īgtech investors are also still largely funding men. In 2022, VC investments across the board are about 30% lower year on year, and I would expect a similar slowdown for agtech,” Monica Varman, a partner at G2 Venture Partners, told TechCrunch. “2021 was a record year for VC across the board. While the value of agtech VC deals rose to $11.4 billion in 2021 from $6.5 billion in 2020, several investors told TechCrunch they’ve noticed a slowdown in agtech deals this year amid the wider tech downturn of 2022. Still, agtech is not immune to some of the broader trends in venture. Liu argued that this demand is creating strong tailwinds for businesses that strive to address agriculture’s environmental impact, ultimately driving more capital into everything from cellular agriculture to methane reduction solutions for livestock. “People are not only paying more attention to agricultural-related emissions but also how much land and water is required to support the world’s food supply and the amount of runoff being generated,” she said. “Over the last few years, we have seen skyrocketing interest in sustainability from consumers and food brands, and awareness over the negative impacts of agriculture continues to grow,” said Ting-Ting Liu, investor at Prosus Ventures. Among the areas where he sees the biggest potential impact, the investor cited improving plant genetics, boosting the shelf life of more products and putting digital tools in the hands of farmers.Ĭonsumer behavior is another piece of the proverbial puzzle as climate literacy increasingly alters how folks shop. “There are opportunities to develop adopt new technologies all along the food value chain that will impact key issues like food security and emissions,” Adam Anders, a managing partner at Anterra Capital, told TechCrunch. At the same time, Russia’s invasion of Ukraine is rattling the world’s grain supply, driving up costs and further aggravating supply chains.Įven as these and other crises hammer the multitrillion-dollar industry, startup investors see potential for huge returns with tech that could boost yields, slash emissions and mitigate waste. To gauge how VCs are responding to these issues, we spoke with seven investors.įor starters, rising greenhouse gas emissions are driving punishing droughts and storms, which are harming crops, exacerbating food insecurity and threatening countless livelihoods. Climate change and geopolitical instability are wreaking havoc on agriculture.
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