Agtech investment tops $2B in Q2 despite pandemic headwinds
September 18, 2020
The coronavirus outbreak has created significant obstacles for the agtech industry, exposing vulnerabilities in supply chains and driving down demand for major commodities like cotton and corn. Yet in Q2, VC investment in agtech companies totaled $2.1 billion, up more than 170% from Q1.
At the moment, investors are focused on sustaining their existing portfolio companies—but that may change. The pandemic is likely to accelerate trends toward automation and robotics, and new opportunities are expected to arise as growers seek out solutions in their new environment, according to our inaugural Emerging Tech Research report on agtech. Other key takeaways include:
At the moment, investors are focused on sustaining their existing portfolio companies—but that may change. The pandemic is likely to accelerate trends toward automation and robotics, and new opportunities are expected to arise as growers seek out solutions in their new environment, according to our inaugural Emerging Tech Research report on agtech. Other key takeaways include:
- Venture funding in agtech had a CAGR of nearly 33% from 2010 to 2019, driven primarily by climate change and global population growth
- The ag biotech sector carried the bulk of VC activity last quarter, with $1 billion raised across 20 deals
- Agtech exit activity has remained remarkably low over the past decade, in part because of agriculture's long development times
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