Agtech, the exciting thing behind
Agriculture seems to have limited incentives to innovate as the time span between planting, growing and harvesting is long to test innovation on the ground. Where exactly is the innovation in agriculture, which represents a global economy of 3 trillion USD as od 2017 and the main source of employment across communities?
There is an increasing collaboration between the space of technology and agriculture. Hundreds of Agtech start-ups try to tap in the agricultural revolution, which is fundamental. The world population is expected to reach 10 billion by 2050, only 40% of the world’s land is available to grow crops and 70% of fresh water is already being used in agriculture. We have to do more with less, we have to innovate more to protect more our natural ecosystems, reduce food waste and enhance efficiency and productivity in every aspect of food production.
There are some other key factors behind the convergence of technology and agriculture. The consumers are willing to eat more healthy food and require transparency and traceability of their food supply. Moreover, the farmers are aging and a generational change is happening. The young farmers are more tech-savvy and aware of tomorrow’s global challenges. There are more connected and keen to have and process data and knowledge, they are willing to adjust themselves to the risks and challenges ahead and to do so; they are open to new ideas, know how, innovative thinking and collaboration.
According to Agfunder’s report, an online investment platform for Agrifood technologies, there are 13 key categories in Agtech, varying from biotechnologies, to novel farming systems, from e-grocery to innovative food. The total Agtech financing in 2016 reached 6.9 billion USD across these categories and is expected to tap 9.0 billion USD at the end 2017. Already in the first half of 2017, the investments in that space are cumulated to 4.4 billion USD, which has increased by 6% with respect to the same period in 2016. More mature stage investments than seed investments govern the investment trends, showing that the investors are now picking the early winners for further growth. There is also diversification outside of US, especially the investments are getting bigger in amount and in number in the Asian region including Australia.
To give some examples let’s zoom in some shining start-ups. Clear Labs, an Agtech start-up, provides food analytics while standardizing molecular food quality for the global molecular food industry. Founded in 2014 in California by a team of genomic scientists and software engineers, the start-up has raised 19,5 million USD as early stage venture. The team performs big data analytics and index the world food supply enabling the food brands to differentiate on quality and to stand behind their value proposition.
Granular, a farm management platform, founded in San Francisco in 2014, operates a software and analytics platform to help farmers to produce more efficiently, with enhanced transparency and new operating models including crop and field planning, team mobile app and equipment integration. The start-up backed by multiple top tier venture capital funds has been acquired by the global agriculture giant DuPont in September 2017 for 300 million USD.
One of the biggest vertical farming start-up, AeroFarms, founded in New Jersey, USA, has opened with an indoor vertical farm of a total of 7,000 m2 floor space to produce greens in massive quantities. The company raised 96,8 million USD so far and aims to provide 390 times more productive farms than field farming.
CropX is an ag-analytics company that develops cloud based software solutions integrated with wireless sensors to boost crop yields, save energy and water. Founded in Israel in 2013, the company raised already 10 million USD from two investors.
TerrAvion delivers subscription aerial imagery for agriculture at low price to access to periodic multi-layered imagery across the growing seasons and resolve discrepancies before they affect the bottom line of the farmers. The firm, based in California, has raised 10 million USD from a series A investor in 2017.
Benson Hill Biosystems raised 34,6 million USD since its foundation in 2014. The company provides technology solutions and combines plant biology, big data analytics and cloud computing through a predictive learning engine.
The technology and agriculture are co-working to solve the greatest challenge for humanity, the sustainable food supply for the largest ever population of human kind on the planet. Reducing food waste, enhancing productivity while not destroying our eco-systems are the ultimate challenges that we will face while innovating in the hands of the mother earth.
