In recent years, AGTech innovators have produced exciting new ways to capture the power of technology to enhance the world’s food supply. In this article, we discuss why investors select the FoodTech and AGTech industry and what we as a company look for in these food and agriculture companies seeking access to capital.
Why Invest in FoodTech and AGTech?
Not long ago, Food and AGTech used to be a niche sector to invest in, but with massive IPO’s from companies like Beyond Meat and Oatly, investors are becoming more aware of the returns available. With the increased potential of higher returns from FoodTech companies, it is obvious that VC firms are more inclined to incorporate companies within the space into their portfolios. Some key figures are highlighted below to show how the space has been growing over the years:
- Venture investment in US – based FoodTech companies have been steadily increasing from around $60 million in 2008 to a staggering $1 billion in 2015 (Pitchbook Data).
- A total of $22.3B was invested into the space in 2020, with $17.3B in FoodTech and $5B in AGTech –– a 35% jolt from 2019, with a larger rise estimated for 2021. That’s a 9.6x increase since 2015.
- Corporate venture capital (CVC) has been significant of late, with CVCs participating in 107 funding rounds in 2020 representing $3.2 billion in capital committed. In comparison, CVC activity in 2019 represented just $770 million across 66 deals.
Global AGTech & FoodTech VC deal activity (Source: PitchBook) continues to climb each year, and can be seen by the infographics shown below:
GoPublic.AI Capital Raises – FoodTech & AGTech
GoPublic.AI is dedicated to helping world changing companies achieve their goals of bettering the planet and the lives of many. Our passion for impact-based companies is a large reason why we are fascinated by the FoodTech and AGTech industry and continuously look for companies within the space in need of capital raises along with a route to go public on the Canadian markets. It is not unknown that companies within the space are getting noticed by large venture capital firms, and the key figures mentioned above further prove that. With that said, funding for these companies continue to climb as the customer demand heightens along with companies seeking new ways to innovate farm production in a more eco-friendly, sustainable way.
Consumers are more inclined to purchase premier food tech innovations that are convenient, less harmful to the environment, and produce less waste. For those reasons, along with many more, Food and AGTech demands continue to rise, paving the way for companies to capitalize on the gains during the process.
There is a lot that goes into analyzing and assessing potential companies suitable for our services in which capital can be raised. Some key factors that go into our deal teams’ analysis of assessing a potential company, specifically a FoodTech/AGTech company looking to raise capital, are highlighted below:
Previous revenue trailing
- A minimum annual trailing revenue of $500k
Protectable trademarks/IP
- Awarded patents/proprietary elements
Management experience
- Previous business success/exits
- Personally invested into the business
- Strong ability to present and communicate
- 5+ years in the industry
Stage of Readiness
- Strong revenue projections that can be verified
- Facility and equipment ready to scale
- Financials reviewed or audited
Over the past few years, we have seen a steady increase in the number of companies ticking off the boxes we have mentioned above, which shows how the FoodTech and AGTech industry has been growing and how emerging companies have been capitalizing on the hot sector as of late. Below are the top VC deals in AGTech in 2020 to give context to the size of the deals closed:
| Company Name | Close Date | Deal Size ($M) | Company Vertical | Investment Round | Pre-money valuation ($M) |
|---|---|---|---|---|---|
| Indigo Agriculture | June 22, 2020 | $ 500.0 | Crop protection & inputs management | Series F | $2,250.0 |
| Ynsect | October 6, 2020 | $371.5 | Animal tech | Series C | N/A |
| Farmer’s Business Network | August 3, 2020 | $250.0 | Ag marketplace & fintech | Series F | $ 1,600.0 |
| Revol Greens | September 25, 2020 | $203.7 | Indoor ag | Series A | N/A |
| Infarm | September 17, 2020 | $201.3 | Indoor ag | Series C | $407.9 |
| Xaircraft | November 16, 2020 | $179.9 | Imagery | Series C1 | N/A |
| Plenty | January 1, 2020 | $175.0 | Indoor ag | Series C | $875.0 |
| InnovaFeed | November 19, 2020 | $165.2 | Animal tech | Early-stage | N/A |
| Benson Hill | December 18, 2020 | $159.1 | Plant Sciences | Series D | $350.0 |
| Plenty | October 14, 2020 | $140.0 | Indoor ag | Series D | N/A |
GoPublic.AI is recognizing the trend and continuing to look at new companies emerging from the sector, as we hope to catch the next greatest FoodTech & AGTech company looking to make a difference in the world and assist them in any way possible.
Whether it be raising the necessary capital to extend operations or to access the public markets in order to grow to further provide new innovations to the masses, our team is extremely excited for the future of the industry and the strides it has taken thus far. Feel free to visit our funding information page to learn more and submit an application to schedule a complementary call with our experts to ask any questions you’d like.
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