Investment in Agrifoodtech Grew Significantly in 2020



Globally in 2020, agriculture and meals (agrifoodtech) startup firms raised $26.1 billion, based on the 2021 AgriFoodTech Funding Report from AgFunder. That’s a 15.5% year-over-year (YoY) improve. The corporate expects the quantity to extend to greater than $30 billion as unannounced 2020 offers are revealed, which might quantity to development of 34.5% over 2019. 
Making up a lot of the elevated funding from 2019 to 2020 was late-stage offers, with “traders doubling down on their current portfolio and the first-wave of agrifoodtech improvements.” The median deal measurement for development rounds elevated 29% from 2019. Late-stage rounds had been up 17%. 
Additionally up had been early-stage offers for upstream startups (these nearer to the farm) — ag biotech, farm administration software program, farm robotics & tools, bioenergy & biomaterials, novel farming, agribusiness marketplaces, midstream applied sciences, and progressive meals. They closed 30% extra offers and acquired nearly 50% extra {dollars} YoY. 
General, upstream funding was greater than downstream funding for the primary time in seven years, partly as a result of many upstream meals manufacturing classes had COVID-19-related attraction. They acquired $15.8 billion in 1,950 offers, up 68% from 2019. Classes seeing a big improve in funding had been midstream applied sciences, with a give attention to environment friendly provide chains and progressive meals, pushed by alt protein startups.
Downstream firms (startups nearer to the buyer) — in-store restaurant & retail, on-line eating places & meal kits, eGrocery, restaurant marketplaces, and residential & cooking — acquired $14.3 billion in 1,142 offers. eGrocery startups raised $5.1 billion. Nonetheless, general early-stage downstream funding decreased, with a 15% drop in retail & restaurant and an nearly 50% decline in residence & cooking tech.
AgFunder believes now could be the time to put money into agrifoodtech, noting the COVID-19 pandemic “has highlighted the significance of environment friendly provide chains and other ways of rising, processing, transporting, and promoting meals to customers.”

Supply: AgriFoodTech Funding Report
U.S. agrifoodtech 
Agrifoodtech startups in the US raised $15.45 billion in 2020 — 37% of offers and 51% of dedicated {dollars}. The variety of U.S. offers elevated 30% YoY. This improve reversed a earlier declining development. “The return of capital to the US might be a slight flight to security within the wake of the pandemic, in addition to traders doubling down on earlier and now extra mature bets of their portfolios,” states the report.
Right here’s the listing of prime U.S. offers
Supply: AgriFoodTech Funding Report — Yellow signifies upstream offers and blue signifies downstream offers.
2021 predictions
AgFunder makes the next predictions for 2021:

The development for early-stage companies to go public utilizing Particular Goal Acquisition Firms (SPACs) will proceed.
eGrocery will proceed to vary conventional retail. The first manner customers uncover new merchandise will transfer from retailer cabinets to telephones. The facility of conventional manufacturers will lower as customers uncover and select smaller startup manufacturers. 
As plant-based merchandise develop into extra mainstream and price-competitive, animal agriculture will transfer extra in direction of regenerative practices, carbon neutrality, and premium choices. Dairy will stay sturdy as farms work in direction of carbon neutrality.

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