Source page: McKinsey & Company
Commentary
Are agtech start-ups recovering?
Agriculture | Start-ups | Venture capital
April 22, 2024 – The agriculture technology (agtech) industry has been in a funding drought over the past few years, with venture capital investments down by 60 percent since 2021 and by 30 percent in 2023 alone. Senior partner Roberto Uchoa and coauthors find that the impact has been particularly acute for agtech start-ups: $6 billion of investment in 30 important companies was lost in 2023 because of turnaround or distress situations. Nonetheless, the long-term outlook for the sector is promising, given the need to address food security and reduce carbon emissions from agriculture. Click through the interactive to see more.
Interactive
To read the article, see “Seizing opportunities amid the agtech capital drought,” March 19, 2024.
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Visual form
Agtech investment chart.
Layout / body structure
The sequence moves through funding pressure, lost investment, and the long-term opportunity for agriculture technology.
What is being compared
It compares agtech investment conditions over time and the effect of the funding downturn on important start-up companies.
Measurement system
The measures include percent decline in venture-capital investment and dollar value of investment lost.
Visible structure inside the graphic
The visual centers on the funding drought, showing a steep decline since 2021 and a separate 2023 drop, then connecting that pressure to lost investment among important companies.
Main takeaway from the visual
Agtech start-ups have been hit hard by the capital drought, but the sector still has a promising long-term case because food security and agricultural emissions remain major needs.
Key standout values or extremes
Venture-capital investment is down 60 percent since 2021 and 30 percent in 2023 alone. Six billion dollars of investment in 30 important companies was lost in 2023 because of turnaround or distress situations.
Controls / sequence, when applicable
This is an chart; the reader clicks through the funding and recovery views.
Companion media, when applicable
There is no separate companion audio or video; the chart is the full visual on this page.