The global agri-food technology sector is entering a new chapter after several challenging years marked by fewer exits, tighter liquidity and more cautious investors. The period of rapid expansion fueled by abundant capital has given way to a more selective environment, where funding is harder to secure but increasingly concentrated in startups with robust business models, credible commercialization paths and measurable impact. According to Mark Durno, managing partner for agri-food at Rockstart, this shift reflects a necessary correction rather than a loss of confidence in the sector's long-term prospects.
Speaking about current market dynamics, Durno explained that while the overall investment pipeline has shrunk, the quality of deals has improved. Fewer transactions are being completed, but those that move forward tend to involve stronger technologies and more realistic valuations. In his view, speculative capital has largely exited the space, leaving behind investors who understand the complexity of agriculture and food systems and are willing to engage for the long term.
Durno acknowledged that the past two years have been particularly difficult for early-stage funds and founders alike. Limited distributions and a lack of high-profile exits have reduced the amount of capital available for reinvestment, forcing venture firms to prioritize lower-risk opportunities. This has made fundraising more challenging across the board, especially for pre-seed and seed-stage startups. Still, he stressed that the underlying thesis for agri-food innovation remains intact: the global food system must transition toward more sustainable models.
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