Logo

Ag Biotechnology tops investors’ wishlist for 2020

New research published by technology incubator Idea2scale and Agri-FoodTech venture capital firm AgFunder has revealed that food and AgTech investors are most excited by startups in the Ag Biotechnology category

ag tech 3Ag Biotech is a wide-ranging category of agri-foodtech innovation encompassing all on-farm inputs for crop and animal agriculture. (Image source: Whisker Flowers/Pixabay)

The report details the results of an investor sentiment survey of 50 food and AgTech venture capitalists globally to discover their preferences and hopes for 2020.

Ag Biotech is a wide-ranging category of agri-foodtech innovation encompassing all on-farm inputs for crop and animal agriculture including genetics, microbials, breeding and animal health. A key focus for startups in this category is to help farmers increase their yields in a more environmentally sustainable way and 58 per cent of investors surveyed put Ag Biotech in their top three.

The next most popular categories were Innovative Food (56 per cent), which includes the ever-exciting alternative meat segment, and Farm Management Software, Sensing & IoT (46 per cent). At the opposite end of the scale, 54 per cent of investors said the online restaurants and meal kits category was the most overhyped.

Geographically, 57 per cent of investors were most excited about the opportunity presented by Asia’s agri-foodtech startup industry, and India was flagged by 12 per cent as having particular potential. Looking overseas, the USA investors are 10 per cent more likely to invest internationally (66 per cent) compared to their European counterparts (56 per cent).

Investors indicated they were struggling with quality inbound deal flow, relying on warm intros (66 per cent) rather than cold approaches. On average they invest in one company for every 78 deals they look at, citing ‘the team or lack of certain skills’ as the number one reason to pass on a deal.

Danny O’ Brien, CEO and founder of Idea 2 Scale, said, “Understanding the mindset of investors is intrinsically linked to predicting the direction of the industry itself and separating what’s overhyped from what’s garnering real interest.”

“Although it’s a hugely exciting time for the food and AgTech industry at large, this research has reaffirmed the need for businesses to ensure they are coming to investors with an ‘investor ready’ opportunity. Businesses must assess whether they’re clearly communicating their value proposition, have a clear route to market and have assembled the right skillset in order to stand out from the crowd. These are non-negotiables for securing investment.”

Louisa Burwood-Taylor, head of media and research at AgFunder, said, “While Ag Biotechnology has consistently been the best-funded upstream category across the food supply chain, it’s interesting to see that it continues to grab investor attention, especially in light of recent prohibitive regulatory decisions in Europe. What’s lesser-known is that Innovative Food, the category including the trendier meat alternative segment, is still a very small part of the overall foodtech and agtech startup universe. With clear investor demand for more Innovative Food opportunities, including us at AgFunder with our New Carnivore Fund, it’s very likely investment will have increased dramatically in 2019.”


LATEST NEWS IN Agriculture

USAID and NASA renew partnership to address development and humanitarian challenges

USAID and NASA renew partnership to addr…

On 4 November, Administrator Samantha Power signed a Memorandum of Understanding (MoU) between the U.S. Agency for International Development (USAID) and the National Aeronautics and Space Administration (NASA) to renew...

Norway promises top-up contribution of urgently needed climate finance

Norway promises top-up contribution of u…

On 9 November 2022, Norway, as part of a commitment to triple its support to climate adaptation by 2026, has pledged an additional US$9.5mn contribution of urgently needed climate finance...

Better Cotton signs partnership agreement with IDH and CotonChad

Better Cotton signs partnership agreemen…

Better Cotton recently signed a multi-stakeholder Letter of Intent to participate in the landscape approach, developed with local stakeholders in Chad in conjunction with IDH, intending to work towards improving...

NFU president Minette Batters appointed as ambassador of Farm Africa

NFU president Minette Batters appointed …

Farm Africa, a charity that promotes sustainable agricultural practices, strengthens markets and protects the environment in rural eastern Africa, has announced the appointment of NFU president Minette Batters as an...

AfDB grants US$63.38mn loan to implement agro-processing project in Senegal

AfDB grants US$63.38mn loan to implement…

The board of directors of the African Development Bank (AfDB) Group in Abidjan has approved a loan of US$63.38mn to Senegal to implement the Agropole-Centre agro-industrial processing zone project

Farming innovations which help conserve nature and create jobs

Farming innovations which help conserve …

On World Food Day, farmers in the UK and globally showed how innovative farming methods and techniques can improve lives, help meet global climate targets and produce food without harming...

Prev Next

OTHER RELATED ARTICLES - Agriculture

West Africa 'needs to strengthen market for small-scale farmers'

West Africa 'needs to strengthen market …

Smallholder farmers in West Africa provided more than 80 per cent of the region's food needs, but faced challenges such as low application of technology and unremunerative markets, according to...

West African IFAD programme declared a success

West African IFAD programme declared a s…

IFAD and the EU have successfully completed the US$26.6 million Food Facility (EUFF) programme in West Africa

Corteva Agriscience leads fight against above-ground maize pests

Corteva Agriscience leads fight against …

Corteva Agriscience has officially introduced PowerCore technology to South Africa’s maize farmers

Mastercard platform connects small farmers in Kenya, Uganda and Tanzania

Mastercard platform connects small farme…

Mastercard Farmer Network platform is set to improve market access, increase price transparency and digitise payments to connect small farmers in Kenya, Uganda and Tanzania

Nigeria urged to improve its cocoa production

Nigeria urged to improve its cocoa produ…

The International Cocoa Organization (ICCO) has urged Nigeria to benefit from its US$400mn fund to improve cocoa production

West Africa to organise fertiliser agribusiness conference in Ghana

West Africa to organise fertiliser agrib…

In collaboration with CRU Events, African Fertiliser and Agribusiness Partnership (AFAP) will organise a three-day west Africa Fertiliser Agribusiness conference in Accra from 10 to 12 July 2017, aiming to...

Lean farming can make agricultural operations more effective: experts

Lean farming can make agricultural opera…

Lean farming has the power to make agricultural operations more effective and improve profit margins – but it requires a radical shift in thinking, said Conor Colgan, farmer and business...

Southern Africa receives boost in agricultural sector

Southern Africa receives boost in agricu…

The Southern African Agriculture Development Partnership Platform (SAADPP) has been launched in Zambia under the NEPAD Business Foundation (NBF) and the Agri-Business Forum (ABF)

Sierra Leone improves food production and cuts imports

Sierra Leone improves food production an…

Sierra Leone has improved its production of rice, cassava and other products according to the country's minister of agriculture, forestry and food security

Zambia is required to manage adverse climate and livestock diseases to boost agricultural yield: World Bank

Zambia is required to manage adverse cli…

Zambia need to better manage agricultural risks such as drought, floods, disease and commodity price volatility to minimise losses and put agriculture on a stronger footing in the country, according...

New study raises the voices of small farmers in Mozambique

New study raises the voices of small far…

A research report released 3 August tells the story of small farmers in Mozambique who are adversely impacted by large-scale, foreign agricultural investments - and the alternative, ecumenical vision of...

AfDB to invest US$24bn to boost African agriculture

AfDB to invest US$24bn to boost African …

The African Development Bank (AfDB) has announced plans to invest US$24bn to support the implementation of the continent’s agricultural transformation agenda

Prev Next

Template Design © Joomla Templates | GavickPro. All rights reserved.