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Investment in ag tech startups down sharply in 2016

Investment in ag tech startups fell sharply last year after a record-setting 2015.

AgFunder, an online platform for accredited investors looking to invest in curated food and agriculture technology companies, reports funding reached $3.2 billion dollars a year ago.

AgFunder head of media Louisa Burwood-Taylor says that’s 30 percent below 2015’s $4.6 billion.

“Farm incomes have definitely made it challenging for farmers to make that investment into new technologies.  But we also saw a pullback in the global venture capital market, where funding fell 10 percent.”

She calls 2016 a year of contrasts, however, as the number of deals closed increased 10 percent.

“Which was the biggest rise in the number of deals closed on record.  That means that there are more startups and more investors interested.  They’re raising funding, they’re innovating and creating new solutions.”

Burwood-Taylor says ag tech startups fall into many categories, including farm-to-consumer delivery services, biotechnology inputs, animal health ingredients and a broad range of farm management software.