Shifts in how people think about food, investing and even changes brought about by COVID-19 have led to more money—and more deals—in the agtech sector than ever before.
Last year was a record year for agtech, with nearly $5 billion invested in the sector in 440 funding deals to VC-backed startups, according to Crunchbase data. That far outstrips the $3.3 billion invested in 422 deals in 2020.
Vertical farming, for instance, has become a popular investment. That pace doesn’t seem to be slowing down. Through the first month-plus of this year, more than $1 billion has come into the sector, Crunchbase figures show.
Intersection of change
Those who invest or work in the industry point to a handful of reasons why agtech—long thought as slow to change and unlikely to bring back big returns—is now receiving large rounds.
One of those main reasons the sector finally seems to have taken root with investors is the changing buying habits of millennials in particular and people in general when it comes to their food’s taste, nutrition and sustainability.
“Consumers have made a real impact,” said Sanjeev Krishnan, founder and managing director at S2G Ventures, a multistage venture fund focusing on investments in food and agriculture industries. “Consumers definitely want more nutrition. They want different tastes.”
Read the complete article at www.news.crunchbase.com.