Agrifood venture, Finistere Ventures, has revealed the latest findings of its review series, reporting another record-breaking year for investment in the industry.
Having exceeded 2019’s unprecedented totals, agrifood tech startups raised $11.6 billion in funding in 2020, bringing the investment total from 2012 through to Q3 2020 up to $46.4 billion.
Despite the challenges faced this year due to Covid-19, the industry has managed to topple its previous milestones, with Arama Kukutai, co-founder and partner, Finistere Ventures, commenting that: “The flow of capital is shifting as the market matures. While more investment dollars pour into advanced crop protection technologies, indoor farming, alternative proteins, food delivery, and supply chain advances, investment in mainstays like digital ag is consolidating as leaders start to emerge.”
“The investment boom in this sector will help drive a healthier, more sustainable food and ag ecosystem,” he continued.
Developed in collaboration with SaaS company PitchBook, the report found that agritech investment totalled $3.07 billion in the first three quarters of 2020; while foodtech investment totalled $8.37 billion in the first three quarters of 2020.
The majority of capital invested went to later-stage deals, emphasising the maturation and robustness of the market in the face of adverse conditions bought about by the pandemic.
In addition, the report found that in foodtech, startups in ecommerce delivery and meal kits benefited most from Covid-19 concerns.
“With more than $46 billion of venture capital flowing into ag and food advances over the past decade, AgriFood tech has become a focus of tremendous investor interest,” Kukatai added. “As Covid shone a light on some of our food and agricultural production system fragilities that need strengthening, capital flowed in to support the trend to dine at home.”
“While substantial progress has been made, there is still a long way to go. The investment trend we are seeing is long overdue in a massive sector that has been under-invested, and there is a lot of room for further growth. Building a sustainable ag and food ecosystem is absolutely critical, and it will take a lot of time and more capital.”
© FoodBev Media Ltd 2020