INSUBCONTINENT EXCLUSIVE:
Venture investors are pouring billions of dollars into feeding their hunger for food and agriculture startups
Whether that trend line is due to enthusiasm for the sector or just broader heavy investing in the VC space is much less clear.According to
a recent report published by AgFunder – a VC and investing marketplace focused on the agriculture and food sectors – the “AgriFood”
Using data from Crunchbase and several other data partners, the organization published its “2018 AgriFood Tech Investing Report” this
morning, finding that investment in AgriFood companies increased 43% year-over-year, reaching $16.9 billion in 2018.AgFunder classifies
AgriFood tech as “the small but growing segment of the startup and venture capital universe that’s aiming to improve or disrupt the
global food and agriculture industry.” Their definition is intentionally broad, encompassing everything from crop and livestock biotech,
property management systems, and payments, to biomaterials and meat alternatives, all the way up to tech platforms for restaurants, grocers,
deliveries and at-home cooks.While some of the AgriFood tech categories – such as delivery or restaurant software – have long been
popular destinations for venture capital, we’re now seeing a more diverse array of startups innovating across the entire food supply chain
According to the report, expansion in AgriFood is fairly consistent across upstream (agricultural and farming) subsectors to downstream
(more consumer-facing) subsectors, with each group growing roughly 44% and 42% year-over-year respectively.The data also shows growth
occurring across almost all deal stages
AgriFood saw huge increases in the average deal size and total investment for late-stage companies in particular, as venture-backed startups
have grown to global scale
And penetrating and attracting capital from international markets seems more feasible than ever
AgriFood investing, which traditionally has been largely US-centric, is rapidly becoming a global phenomenon, with more than half of total
funding – and some of the largest rounds – now coming from companies and investors outside the US.
