Venture Capital Investment in Agritech Sector Set to Drop After Boom in 2021
The Covid-19 pandemic brought to light the vulnerability of global supply chains, including the distribution of agricultural and food products. Then, in 2022, the Russian invasion of Ukraine tested the limits of the world’s food system. An answer to these problems comes in the form of agricultural technology, or agritech, which strives to make the system more efficient and streamlined through the application of a wide array of technologies, from the usage of AI to drones and robotics.
Over the past ten years, venture capital investment in the agritech sector has grown consistently, as the chart above shows. In 2020, investment in agritech increased by 45.8% to $7bn, up from $4.8bn in 2019. Then, in 2021, it increased by 61.4% to $11.3bn, representing a peak in the investment, and considerably higher than the $600m in 2012.
Photo courtesy of Global Water Forum.