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ANALYST REPORTS ONLY 2% OF INVESTMENTS ARE IN AGRIFOOD TECH, SAYS 2024 WILL BE THE TOUGHEST YEAR
Feb. 5, 2024
by Jennifer Marston, AgFunderNews
Venture capital money allocated directly to agrifood only accounts for about 2% of the entire global investment pool, says Roberto Viton at Valoral Advisors, who has been tracking the agrifood funding landscape for more than 10 years.
And while the number of agrifood-focused VC funds has grown worldwide from a mere 42 in 2013 to more than 280 as of the third quarter of 2023, that growth has slowed in the last few years.
"Growth was possible because we were starting from very low levels'," Viton says of the rise in agrifood funds over the last decade.
Putting that growth in context, he says, "Typically when you talk to an institutional investor, like a pension fund, and you ask how much money they have directly invested in [agrifoodtech], they will tell you anything between zero and 2%. Or maybe 3% if they include forestry.
Like others, he also believes 2024 is going to be another tough road for agrifood.
"This year is going to be the toughest one in my view," he says. "More companies will really struggle and many companies will close. But this will evolve. I see a lot of conversations between startup founders to merge businesses, to consolidate. I think that's what's going to happen next."
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