Agrifoodtech ventures attracted record number of investments in 2020
Agrifoodtech ventures have raised more than $30billion in 2020, says the new 2021 AgriFoodTech Investment Report.
The analysis was released by AgFunder end of February 2021. According to the new report, deals made and dollars disbursed in 2020 were the highest on record, surpassing 2019 levels. As more data trickle in, total dollars committed to agrifoodtech ventures in 2020 is expected to hit $30.5 billion. That represents a 34.5% increase over 2019 investments. The sector’s stellar performance is attributable to an increasing number of big rounds, signifying a maturing sector with a few clear outliers. For instance, plant-based meat company Impossible Foods raised two rounds totaling $700 million, leading a long and increasingly tech-diverse roster of investor-backed alternative protein companies. There were also a lot of really small rounds, which speaks to investor confidence in placing their bets on the agrifoodtech sector at large, and on the next generation of early-stage innovations and technologies. Early-stage investments grew 10% year-over-year in 2020; the number of deals grew 15%.
A trend the experts noticed for 2020 as wel: that for the first time in years, upstream ventures—the technologies closest to the farm—outpaced their downstream peers in both number of deals and dollars invested. Upstream technologies secured $15.8 billion across 1,950 deals to downstream technologies’ $14.3 billion across 1,142 deals. Usually downstream ventures score bigger rounds, but last year, upstream ventures also won on median deal size.
And, investors placed bets on a lot of new upstream technologies. Early-stage upstream ventures closed 30% more deals and nearly 50% more capital year-over-year; early-stage downstream activity actually decreased—by nearly 10% in deal count and 25% in dollars invested.
For more information on the report and its analysis, please see here: https://agfundernews.com/2020s-agrifoodtech-investment-story-speaks-of-resilience-maturity-and-big-bets-on-what-comes-next.html