Agtech investment declined in Q4 2023 says PitchBook update

February 1, 2024

Agtech investment was $1.4 billion across 181 deals in Q4 2023, according to market consultancy PitchBook. This was a decline in value of -34.7% on the previous quarter (QoQ), and a decline of -17.4% in venture capital (VC) deal counts QoQ.

PitchBook notes that Q3 had bucked the declining trend for 2023 with an increase in value. “In total, the quarterly deal activity declines in 2023 have added up to nearly a 40% reduction in deal values and deal counts YoY. We logged $7.1 billion invested across 952 deals in 2023, down 39.5% and 39.2% YoY, respectively,” the consultancy said in its Agtech Report.

FBN, the farm data analytics company, closed a $154.9 million late-stage VC round, which was the highest value for the 4th quarter.

“Indoor farm operator Bowery raised the second largest deal of the quarter with a $93.8 million Series D. The deal valued the company at $941.8 million post-money, a considerable down round from its Series C1 in 2021 that valued the company at $2.3 billion,” said the report.

PitchBook said that indoor ag companies faced ‘significant heads over the past two years, including high startup costs, rising energy costs, and dwindling investor support.’

“In the long term we expect business models and technology to continue to evolve and investors to become increasingly savvy to the complexities, challenges, and opportunities of the indoor farming industry,” the report concluded.

For specialist information on investment in the biologicals ag-input space, subscribe to 2BMonthly, a publication produced jointly by New AG International and DunhamTrimmer.

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