Agrifoodtech VC funding dropped to $5.1 billion in H1 2025, a 37% decline from H1 2024, marking the lowest H1 total since 2015. The sector faces challenges from AI’s dominance, economic instability, and geopolitical tensions, with investors becoming more selective. AgFunder’s Rob LeClerc notes VC flight from non-AI sectors, while Darren Leong of Clay Capital highlights resilient founders adapting to regional dynamics. Mark Kahn of Omnivore sees momentum in agri-fintech and sustainable materials, and Antony Yousefian of TheFirstThirty VC observes a shift toward life sciences. Midstream Technologies led funding due to large deals like Magnavale’s $600M round, while Ag Biotech and Innovative Food saw declines. Farm Robotics and Novel Farming Systems also dropped. Despite the downturn, experts see bottom signals as opportunities, with disciplined founders focusing on scalability and profitability. Preliminary data suggests further adjustments may follow.
Source: Agrifoodtech VC funding still on the decline