Investment in agtech continues to dry up in 2024, according to preliminary data from AgFunder. Agrifoodtech startups raised $7 billion across 427 deals in the first half of 2024, compared to the same timeframe in 2023, which saw $8 billion across 934 deals. However, funding varies widely across different segments, with some still drawing large investment while others have seen funding sink even further.
Ag Biotech: Defined by AgFunder as including biological inputs as well as biotech innovations in a number of different areas of agrifood, ag biotech startups raised $1.7 billion in the first half of 2024 (H1 2024), almost as much as the total of $1.9 billion during the entirety of 2023. AgFunder notes that the $1.9 billion raised by ag biotech firms last year was a -34% drop compared to 2022.
Innovative Food: This category is made up of mostly alternative protein startups and, surprisingly, was one of the strongest categories in H1 2024., with startups raising $828 million. According to AgFunder, only Ag Biotech and In-Store Retail & Restaurant Tech ($1 billion) surpassed it in terms of top-funded categories. Still, funding in the first half was down from $909 million during the same time last year.
Bioenergy & Biomaterials: One of only two categories that grew in 2023, AgFunder says this category continues to perform strongly so far and will in all likelihood pass the billion-dollar mark this year. While startups in the segment raised $761 million in H1 2024, that’s down substantially fromH1 2023 funding of $1.4 billion.
Online Restaurants & Meal Marketplaces: This category includes the food delivery segment and raised $758 million in H1 2024. That’s up substantially from the first half of 2023 when funding sank to $271 million.
Farm Robotics, Mechanization & Equipment, and Farm Management Software: AfFunder highlights that startups in these segments are facing a concerning ”lack of funding currently going towards farmtech categories.” AgFunder says that how enabling technologies like AI impact these sectors moving forward is worth keeping an eye on as the latter becomes more deeply integrated into tools at the farm gate. Funding for Farm Robotics, Mechanization & Equipment in H1 2024 declined to $398 million versus $505 million in H1 2023, while Farm Management Software & Sensing funding fell to $365 million compared to $536 million in H1 2023.
eGrocery and Novel Farming Systems: The ongoing decline in funding to “former agrifoodtech darlings” continued in H1 2024, with investment in both categories down more than -20% compared to 2023. AgFunder notes that nearly 40% of the funding for Novel Farming Systems ($336 million) came from a single raise from vertical farming company Oishii. The full report is HERE.
