Innovations in Ag Tech: Investing for a Sustainable Future

Alison Ipswich

Agricultural technology, or "Ag Tech," has been gaining momentum as a sector of interest for corporate venture in recent years. With the growing demand for food production and the need for sustainable and efficient farming practices, investors are looking for opportunities to invest in companies that are providing innovative solutions to meet these challenges. This report will provide an overview of the current investment trends in the Ag Tech space.

Investment Landscape:

The investment landscape in Ag Tech is varied, ranging from early-stage startups to established companies that have been in the industry for several years. According to a report by AgFunder, the total amount of global investment in Ag Tech reached $22.3 billion in 2020, a 15.5% increase from the previous year.

Seed stage and early-stage funding make up a significant portion of investment in the Ag Tech space, accounting for 51% of the total investment in 2020. This indicates that investors are still willing to invest in early-stage startups with promising technology and innovative solutions.

Investment in the Ag Tech space is not limited to venture capitalists and private equity firms. Corporate investors are also playing a significant role in the industry. AgFunder reports that in 2020, corporate investors accounted for 23% of the total investment in Ag Tech.

Areas of Investment:

Several areas of Ag Tech have seen increased investment in recent years. These include:

  1. Precision agriculture: The use of technology to optimize crop yields, reduce waste, and increase efficiency.
  2. Agricultural biotechnology: The use of genetic engineering to improve crop quality and yield.
  3. Farm management software: The use of technology to manage farm operations, including crop and livestock management, financial planning, and supply chain management.
  4. Sustainable farming practices: The development of technologies and practices that promote sustainable and environmentally friendly farming practices.
  5. Food processing and packaging: The development of new technologies and methods for processing and packaging food products.

Notable Investments:

Several notable investments have been made in the Ag Tech space in recent years. Some of these include:

  1. Indigo Agriculture: Indigo Agriculture is a company that develops microbial and digital technologies to improve crop yield and reduce environmental impact. The company raised $360 million in a funding round led by Flagship Pioneering in 2020.
  2. Impossible Foods: Impossible Foods is a company that produces plant-based meat substitutes. The company raised $500 million in a funding round led by Mirae Asset Global Investments in 2020.
  3. Benson Hill: Benson Hill is a company that uses gene editing and data analysis to develop crops that are more productive and sustainable. The company raised $150 million in a funding round led by Wheatsheaf Group in 2021.

The Ag Tech space is a growing sector of interest for investors, with a range of investment opportunities available from early-stage startups to established companies. Precision agriculture, agricultural biotechnology, farm management software, sustainable farming practices, and food processing and packaging are among the areas that have seen increased investment in recent years. Corporate investors are also playing a significant role in the industry, accounting for 23% of the total investment in Ag Tech in 2020.  Helping to develop and managing your investment pipeline is where Traction Technology can play a critical role as a true extension of your team. 

Learn more about the  Top 20 Emerging Technologies That Could Transform Your Industry 

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