Agtech VC deals fell by 25.6% in 2024, according to analysis by Pitchbook. A potential rebound could be on the cards says the consultancy.

Agtech deal values fell 25.6% over the previous year while deal counts fell 24.3%.

This downturn was primarily attributed to high interest rates, unfavourable trading conditions for public agtech companies, and a challenging exit environment, said Pitchbook in its Q4 2024 report.

The trend in 2024 was towards investment in more mature companies, or late-stage startups. This was reflected in the median deal value reaching a record high of $3.6 million in 2024, up 36% YoY.

Consequently, there was a decline in early-stage investments, such as pre-seed/seed deals, which saw a 33.7% YoY decrease. This shift towards more established companies was seen in the biostimulant producer Sound Agriculture managing a $100 million Series D investment and Carbon Robotics’ $70 million Series D for its laser-based weed-killing technology.

The overall picture for 2024 was a decline but the fourth quarter saw an increase in deal activity. Deal activity grew to $1.8 billion in value across 149 deals, which was an 8.9% increase from the third quarter 2024.

In terms of sectors, precision agriculture emerged as the leading segment, said Pitchbook, attracting $2.1 billion across 238 deals in 2024. “The increased demand for automation, robotics, and software solutions—driven by persistent labor shortages—fuelled this trend,” said the consultancy.

Vertical farming had a torrid time in 2024. Pitchbook noted that 28 companies ceased operations or declared bankruptcy. “Bowery, once valued at $2.3 billion, shut down in November 2024. However, the segment was not without its successes, as evidenced by strawberry grower Oishii’s $150 million Series B round, valuing the startup at $615 million,” the report said.

From a geographical perspective, the USA maintained its position as the leading recipient of agtech VC, but Asian countries made notable strides, said Pitchbook. Asian countries accounted for three of the top 10 deals. The largest deal of the year was a $200 million Series C investment in Malaysia’s Aerodyne for industrial drones used in agriculture and other sectors.

Symptomatic of the general downward trend for 2024, exit activity declined, with only 35 exits totalling $1.1 billion. “The year saw three public listings in the agtech sector: Synspective’s IPO on the Tokyo Stock Exchange, Bolt Threads’ public listing via SPAC, and Kweather’s IPO on the Korea Stock Exchange.”

Despite the travails of 2024, Pitchbook anticipates a rebound in the agtech market when the economy recovers and interest rates are cut. “The industry’s focus on capital-efficient solutions and sustainable growth, coupled with advancements in regenerative agriculture, ag biologicals, and robotics, positions it for potential growth in the coming years,” the report concludes.

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