Innovations in Ag Tech: Investing for a Sustainable Future

Agricultural technology, or "Ag Tech," has been gaining momentum as a sector of interest for corporate venture in recent years. With the growing demand for food production and the need for sustainable and efficient farming practices, investors are looking for opportunities to invest in companies that are providing innovative solutions to meet these challenges. This report will provide an overview of the current investment trends in the Ag Tech space.

Investment Landscape:

The investment landscape in Ag Tech is varied, ranging from early-stage startups to established companies that have been in the industry for several years. According to a report by AgFunder, the total amount of global investment in Ag Tech reached $22.3 billion in 2020, a 15.5% increase from the previous year.

Seed stage and early-stage funding make up a significant portion of investment in the Ag Tech space, accounting for 51% of the total investment in 2020. This indicates that investors are still willing to invest in early-stage startups with promising technology and innovative solutions.

Investment in the Ag Tech space is not limited to venture capitalists and private equity firms. Corporate investors are also playing a significant role in the industry. AgFunder reports that in 2020, corporate investors accounted for 23% of the total investment in Ag Tech.

Areas of Investment:

Several areas of Ag Tech have seen increased investment in recent years. These include:

1. Precision agriculture: The use of technology to optimize crop yields, reduce waste, and increase efficiency.
2. Agricultural biotechnology: The use of genetic engineering to improve crop quality and yield.
3. Farm management software: The use of technology to manage farm operations, including crop and livestock management, financial planning, and supply chain management.
4. Sustainable farming practices: The development of technologies and practices that promote sustainable and environmentally friendly farming practices.
5. Food processing and packaging: The development of new technologies and methods for processing and packaging food products.

Notable Investments:

Several notable investments have been made in the Ag Tech space in recent years. Some of these include:

1. Indigo Agriculture: Indigo Agriculture is a company that develops microbial and digital technologies to improve crop yield and reduce environmental impact. The company raised $360 million in a funding round led by Flagship Pioneering in 2020.
2. Impossible Foods: Impossible Foods is a company that produces plant-based meat substitutes. The company raised $500 million in a funding round led by Mirae Asset Global Investments in 2020.
3. Benson Hill: Benson Hill is a company that uses gene editing and data analysis to develop crops that are more productive and sustainable. The company raised $150 million in a funding round led by Wheatsheaf Group in 2021.

The Ag Tech space is a growing sector of interest for investors, with a range of investment opportunities available from early-stage startups to established companies. Precision agriculture, agricultural biotechnology, farm management software, sustainable farming practices, and food processing and packaging are among the areas that have seen increased investment in recent years. Corporate investors are also playing a significant role in the industry, accounting for 23% of the total investment in Ag Tech in 2020.  Helping to develop and managing your investment pipeline is where Traction Technology can play a critical role as a true extension of your team. 

How can Traction Technology help?

Traction Technology is a ground-breaking platform engineered expressly to eliminate internal innovation silos, thereby enabling enterprises to seamlessly collaborate and align their business needs with promising technologies. By providing dynamic features that promote collaboration and innovation, they aim to accelerate digital transformation in the enterprise.

Here's how Traction Technology can help:

Discovery of Relevant Startups: Traction Technology helps established companies discover relevant advanced technologies aligned with their strategic goals and innovation areas. It curates startups based on different industries, technology trends, and areas of business interest, making it easier to find potential partners or investment opportunities and share this information across the enterprise.

Collaboration and Engagement Tools: Traction Technology offers tools that help manage the engagement process with startups. It provides a structured approach to evaluating, tracking, and managing interactions with multiple startups across multiple project and pilots, improving efficiency and collaboration.

Data-Driven Insights: The platform provides data-driven insights to help make informed decisions. This includes information on startup funding, growth indicators, customers and competitors, which can help in assessing potential startup partnerships.

Innovation Pipeline Management: Traction Technology aids in managing the innovation pipeline. It helps companies capture ideas and request and track innovation projects, monitor progress, and measure results in real time, promoting a culture of continuous innovation.

Track KPIs and Generate Custom Reports: Effortlessly track Key Performance Indicators (KPIs) with real time dashboards and generate custom reports tailored to your organization's unique requirements. Stay

ahead of the curve by monitoring projects progress and engagement.

By leveraging a platform like Traction Technology, established companies can gain a competitive edge, driving their digital transformation journey and adapting to the fast-paced business environment. It supports the integration of startup agility, innovation, and customer-centric approach into their operations, which is critical for success in the digital age.

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About Traction Technology 

We built Traction Technology to meet the needs of the most demanding customers, empowering individuals and teams to accelerate and help automate the discovery and evaluation of emerging technologies. Traction Technology speeds up the time to innovation at large enterprises, saving valuable time and money by accelerating revenue-producing digital transformation projects and reducing the strain on internal resources, while significantly mitigating the risk inherent in working with early-stage technologies.

Let us share some case studies and see if there is a fit based on your needs.

‍Traction Report Update: 23 ways AI could  transform your business in 2023. 

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