“I don't wait for people to give me respect. I always give them respect.” - Mariano Rivera, former Panamanian MLB pitcher for the New York Yankees
April 4, End Of Day
The AgriFoodTech Investment Report 2024 reveals a downturn in overall funding, spotlighting growth in bioenergy and farm robotics amidst tough investment conditions. It highlights a pivot towards sustainability and efficiency in agrifoodtech ventures and shifts in investment geography, signaling an industry ready for transformative change and strategic innovation. Key takeaways include:
1. Decline in Investment: Investment in agrifoodtech startups saw a significant decline, reaching its lowest point in six years at $15.6 billion globally in 2023, marking a 49.2% decrease from the previous year. This reduction is attributed to a combination of fewer and smaller deals. LatAm region also followed this trend.
2. Resilience in Specific Categories: Despite the overall decline, two categories showed resilience and growth: Bioenergy & Biomaterials & Farm Robotics, Mechanization & Equipment. Bioenergy & Biomaterials emerged as the largest category, securing $3 billion in 2023, up 20% from 2022.
3. Shift Towards Upstream Investment: There was a noticeable shift towards upstream investment, with startups operating on the farm or in food production accounting for 62% of the overall investment in 2023. This shift reflects a growing emphasis on sustainable practices and innovations in the primary production stages of the agrifood sector.
4. Geographic Diversification: Investment patterns indicate a diversification with notable activities in emerging markets such as Indonesia, Saudi Arabia, Brazil, and Singapore, despite China and India losing market share.
5. Predictions for Recovery and Future Trends: The report suggests cautious optimism for recovery, highlighting a trend towards more disciplined investment practices and a potential resurgence in areas like alternative proteins, food delivery, and sustainable innovations. The emphasis on sustainability, climate tech, and the need for profitable business models are likely to shape the future of agrifoodtech investments.
Presto: Aiming to redefine the credit landscape in Bolivia, Presto has made significant developments with 1300 monthly active users in just three months and a waitlist of more than 50,000. Their unique position as the only non-regulated fintech with a VISA partnership in Bolivia. Get to know the case here.
Einsted: Einsted’s technology transforms methane into hydrogen, which is then reused for combustion, while carbon is fixed into graphene. This process is not only low in operating costs and environmentally friendly but also targets clients responsible for approximately 20% of global emissions. Get to know the case here.
Avancargo: a B2B trucking platform that provides carriers and shippers with better availability by connecting supply and demand. Avancargo provides transparent management towards all those involved in the logistics chain. Get to know the case here.
Dive deeper into other fundraising firms in LatAm here.
Colombia: The World Bank has approved a $750 million loan to Colombia aimed at enhancing the country's resilience to climate change. This loan will support the development of renewable energy sources such as solar, offshore wind, and green hydrogen, in addition to boosting electric urban transport. This initiative marks the bank's second climate change-focused loan to Colombia, following a $1 billion loan in December 2022.
Paraguay & Mexico: Banks in Mexico and Paraguay are forecasted by Moody's to be the top performers in the region for 2024, attributed to advantageous operating environments. Mexico's banking sector is anticipated to gain from nearshoring activities and reduced funding costs, while Paraguay, alongside Mexico, is the only country among ten evaluated with a "positive" outlook for the coming year. The analysis suggests these conditions will bolster the commercial banking sector, particularly benefiting Mexico and some Central American markets like Costa Rica.
Chile: LATAM Airlines announced plans to re-list ADRs on the New York Stock Exchange, subject to U.S. Securities and Exchange Commission requirements, a process expected to take about six months. The Santiago-based carrier previously traded ADRs on the NYSE before declaring bankruptcy in 2020, and emerged from bankruptcy with an $8 billion reorganization plan in late 2022. Re-listing necessitates approval from principal creditors who supported the reorganization plan.
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