At the World Agri-Tech summit in London, a panel of investors agreed that the agrifoodtech investment model requires a “rethink” due to a sharp decline in VC funding, which dropped 37% year-over-year to $5.1 billion in H1 2025, a fraction of the $52 billion spent in 2021. This required adjustment means resetting expectations for both Limited Partners (LPs) and entrepreneurs, moving away from the unrealistic promise of 10× returns in five years, which is typical of SaaS but not suitable for agriculture. Panelists emphasized that the new investment focus must be on simplicity, clear ROI, strong unit economics, and adoptability for the customer, with a necessary service layer to reach growers. Regarding specific sectors, the panel declared regenerative agriculture, robotics, and AI/LLMs as “hot,” while carbon farming, precision fermentation, and agrifintech were deemed “not.”
Source: Agrifoodtech investment models need ‘a rethink’