Emerging Tech Research: Agtech

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Agtech fundraising continues its upward growth in Q2

The pandemic led investors to ramp up investment in agtech startups addressing vulnerabilities in agricultural supply chains. Now extreme weather events including droughts and wildfires are highlighting new challenges and driving investment in soil sensors, weather prediction services, and aerial imagery that helps growers mitigate the effects of climate change.

Our latest installment of Emerging Tech Research includes spotlights on private companies including Benson Hill, Semios, and CropX. The report also tracks major industry trends, covering developments in areas such as insect farming and agriculture drones.

Key takeaways

Venture funding for global agtech startups hit $2.1 billion in the second quarter of 2021. As more data is added, this figure will likely surpass Q4 2020’s record quarterly deal value. 

Agtech exit counts doubled in Q2, with 12 deals accounting for $2.6 billion in exit value globally. Notable exits include Zymergen, Root AI, Flying Spark, and Agribody Technologies.

Insect farming is gaining steam as corporate food companies look for innovative ways to reach sustainability goals. The edible insect market is projected to reach $4.6 billion by 2027.

Climate change is expected to become one of the dominant drivers of agtech investment in the near future, providing a favorable tailwind to predictive weather analytics tools that help protect crops and livestock.