Agriculture Technology is the application of advanced technology such as, for example, artificial intelligence in the agricultural sector. Its main objective is to increase efficiency and productivity leading to higher profitability, which is very necessary in sectors such as these where margins are very tight. Technological Agriculture could also be defined as all those products and services that contain or are enabled by patented technology in the agricultural value chain, i.e. technology in agriculture for the consumer. This type of technology has a clear impact on sectors such as retail and foodservice.
The agriculture sector, the main driver of society's growth into what we know today, is still a sector that is very much rooted in its customs and methods. However, this is changing thanks to technology. This has allowed it to innovate, leading to increased productivity and greater efficiency and profitability in its processes.
We have examples of leading companies in the sector such as Osram in Germany, Origin Enterprises in Ireland and Monsanto in the US.
This sector analysis covers 2,165 companies worldwide labelled within the "AgTech" category.
All data on companies, acquisitions and founding rounds were extracted on 23 March 2021. Deals, rounds and companies founded after this date have not been included.
In terms of the companies created in recent years, the boom in the sector achieved since 2016 is clearly visible, exceeding 230 companies created in three consecutive years and reaching a top of 267 companies founded in 2018. Although it is true that in the last two years it has decreased significantly, it should be noted that this is normal after such vertical and rapid growth. It should also be noted that 2020 was an atypical year due to the COVID-19 pandemic.
On the other hand, as shown in the following table on realised funding (line) and, consequently, its collection (columns), it is clear the great growth the sector is undergoing. This growth in funding, also rapid and vertical as mentioned above, shows the youth of the sector and its potential. In the last year, despite fewer funding rounds, a total of 4 billion dollars was raised, almost doubling the amount of 2019 or tripling that of 2018. As the study indicates, both fundraising and the number of rounds will continue to increase, making this a very interesting sector in which to act.
At the same time, in terms of acquisitions made in the sector in recent years, there have not been a large number of movements as in other larger or more "modern" sectors, as AgTech belongs to a very specific category. In spite of this, we can also clearly see the long-awaited growth for companies in the sector, with an increase in movements in the last four years, similar to what we have mentioned above in terms of the boom of companies created in the last few years. In terms of relevant acquisitions, we can highlight the purchase of Agrible by Nutrien Ag Solutions in an operation worth 63 million dollars.