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The Agtech crosses a period of deep transformation. Long supported by investments in Corporate Venture Capital (CVC)agricultural innovation must now deal with a significant reduction in funding. Several major players in the sector, like FMC Venturesended their investments in venture capital, while the Common Fund Bayer-Trendlines Agtech Fundinitially planned until 2025, was dissolved at the end of 2024. This withdrawal marks a change of approach to large companies, which now favor targeted acquisitions and short -term strategic investments rather than support for young companies in development phase .
For several years, the AGTECH sector has experienced a progressive contraction of venture capital investments. The figures are eloquent: according to PJ AINIsenior director at Leaps by Bayeragtech funding fell from 30 to 40 % per year Since the beginning of the decade, after a peak of activity in 2018. This euphoria period had seen investors from various backgrounds flow, in particular biotechnology and digital technologies, attracted by the process of transformation of the agricultural sector . But the specificities of the AGTECH – long development cycles, high dependence on agricultural seasons, complexity of the distribution channels – quickly dissuaded many non -specialized funds.
This movement does not mean the end of opportunities for sector startups, but it requires a reorientation of their financing strategies. In Europe, where the CVC in AGTECH has always been less developed than in the United States, entrepreneurs must now rely on other levers to ensure their growth and finance their development.
A more demanding environment for Agtech startups
Paradoxically, while investment in AGTECH is experiencing a global slowdown, some startups continue to raise significant amounts, proving that the market retains an attraction for venture capital funds. 80 Acres Farmsspecialized in indoor agriculture, has lifted $ 115 million Last February. Inariwhich develops genetically modified seeds, has completed a 144 million dollars in January 2025,, with a valuation of $ 2.17 billion, while Carbon Roboticsmanufacturer of automated weeding robots, obtained $ 70 million In October 2024. Companies capable of demonstrating a clear and scalable economic model still managed to attract investors.
To new financing and development models
Faced with the withdrawal of corporate ventures, Agtech startups must turn to other sources of capital. The venture capital specializing in AGTECH is a viable alternative, with funds such as Astanor Ventures, Capagro and Anterra Capitalwhich concentrate their investments in promising themes such as regenerative agriculture, biotechnology and artificial intelligence applied to cultures. Several European startups recently benefited from their support, like theAgronutrisFrench actor in the bioconversion of insects, and Biome MakersSpanish company specializing in the analysis of the soil microbiome thanks to AI.
There Francethe leading European agricultural producer and sixth world exporter of agrifood products, occupies a central place in the AGTECH and FOODTECH. Between 2020 and 2022public investments in the sector have doubled, testifying to a strong political will to Support innovation, both for start-ups and for large companies.
In 2023, the fundraising of young French shoots of the AGTECH and FOODTECH reached 490 million euroswith ten operations between 10 and 50 million eurosor near 18 % of sector funding. This dynamic is accompanied by an intensification of collaborations between Start-ups and established companiespromoting the emergence of new technologies capable of transforming the agricultural model.
However, the sector remains faced with several structural challenges. If technological innovations aims to reconcile productivity and environmental imprinttheir impact on the profitability of farms remains uncertain, slowing down the adoption by farmers. Long sales cycles, the complexity of market access and the high concentration of distribution channels in the hands of cooperatives and traders Limit the entry of start-ups in the field, reducing their ability to contact operators directly. This barrier slows down the enthusiasm of venture capital investors, who struggle to be convinced by the high acquisition costs and still fragile economic models Innovative companies in the sector.
For its part, the European Union plays a key role in the financing of the AGTECH through programs such as Horizon Europewhich supports ecological transition and agricultural innovation projects. National initiatives, as Eit Food, BPI France and Fund innovationoffer additional opportunities to startups seeking to diversify their sources of funding. MicropepFrench company developing peptide -based biopesticides, testifies to this approach by combining private funds and public subsidies to accelerate its development.
In addition to the search for new investors, some startups adapt their economic model to reach profitability more quickly. Rather than depending on funds only, they favor commercial strategies better suited to the long cycles of the AGTECH. Agreenculturespecialist in agricultural robotics, bet on a hybrid model combining sale and rental of its machines to ensure rapid adoption while controlling its costs. Before being bought by Raven Industry, the Greek startup Increasedwhich designs sensors for the optimization of fertilization, had chosen to establish solid partnerships with distributors in order to integrate more quickly into existing sales circuits.
Innovation, key to competitiveness in a changing market
The fact remains that innovation continues to play a central role in the transformation of the sector. Advances in vegetable geneticsfor example, open considerable perspectives. According to PJ AINIcontrolling the reading and writing of the plant genome has already increased yields until A factor ten Without invasive genetic modification. L’epigeneticwhich modifies the expression of genes without altering DNA, could also revolutionize varietal selection by bypassing the regulatory obstacles linked to GMOs.
At the same time, artificial intelligence and automation gain ground in the Agtech. The rise of virtual agronomistscapable of optimizing culture management, and the development of agricultural drones and robotsintended to compensate for the shortage of labor, illustrate this dynamic. The use of drones in agriculture has also multiplied by three in recent years, facilitating irrigation, fertilization and monitoring of plots.
