News & Analysis

Climate change puts agtech on the hot seat

Extreme weather and the Russian invasion of Ukraine captured the world’s attention in 2022, and agtech investors were no exception. Although total VC deals dipped to $10.6 billion—compared with $12.3 billion in 2021—investors anticipate a coming bloom of entrepreneurship and investor capital to tackle global food insecurity and climate change.

Our 2022 Agtech Overview dives into the innovative tech solutions and investment opportunities that could change the game, from custom plant biotech to aquaculture to weeding robots.

Key takeaways

• Late-stage and venture-growth generated the most traction in 2022 agtech numbers, capturing 74.2% of total VC funding and bucking industry-wide trends. Still, exit activity in agtech was expectedly sluggish, plummeting from $31.6 billion in 2021 to just $2.2 billion in 2022.
   
• Ag biotech and indoor farming led the field, with vertical farm Plenty taking the cake for the biggest deal close of the year, a $400.0 million Series E.
   
• As pollinator numbers decline further and fertilizer shortages hit suppliers, opportunities in agtech are especially bountiful in the fields of crop resiliency, sustainability, and food security.