IDEAS home Printed from https://ideas.repec.org/p/ags/uwauwp/333555.html
   My bibliography  Save this paper

The causes, course and consequences of the surge in Venture Capital AgTech investments

Author

Listed:
  • Roche, Julian S.

Abstract

Between 2018-2022, there was a significant surge of venture capital in Agtech. The causes were many: the rise in global population and its consequences, AgTech developments themselves, the search for new investment sectors by VCs themselves, and even the pandemic all played a part. The surge brought investment to locations that hitherto had been completely outside the VC radar, notably Asia but now also Africa. Now that the surge has ebbed, along with VC investment as a whole, it is possible to begin to take stock. The evidence to date suggests that the majority of investment during the surge has flowed into downstream companies with the opportunity for rapid growth and high valuations. No global champion has yet emerged for upstream AgTech, whether in plant genetics, animal health or even novel farming systems. The impact of the surge in raising yields therefore rests on exits to or partnerships with major corporates, as they have the capacity to deliver technology at scale.

Suggested Citation

  • Roche, Julian S., 2023. "The causes, course and consequences of the surge in Venture Capital AgTech investments," Working Papers 333555, University of Western Australia, School of Agricultural and Resource Economics.
  • Handle: RePEc:ags:uwauwp:333555
    DOI: 10.22004/ag.econ.333555
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333555/files/Agribusiness%20VC%20investmentRoche.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.333555?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeff Hopkins & Robert Johansson, 2003. "Beyond Compliance: Sustainable Business Practices and the Bottom Line," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1126-1139.
    2. Suren G. Dutia, 2014. "AgTech: Challenges and Opportunities for Sustainable Growth," Innovations: Technology, Governance, Globalization, MIT Press, vol. 9(1-2), pages 161-193, Winter-Sp.
    3. Ahmed I. Kato & Chiloane-Phetla E. Germinah, 2022. "Empirical examination of relationship between venture capital financing and profitability of portfolio companies in Uganda," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-18, December.
    4. Madeleine Fairbairn & Zenia Kish & Julie Guthman, 2022. "Pitching agri-food tech: performativity and non-disruptive disruption in Silicon Valley," Journal of Cultural Economy, Taylor & Francis Journals, vol. 15(5), pages 652-670, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johansson, Robert C. & Kara, Erdal & Ribaudo, Marc, 2006. "On how environmental stringency influences BMP adoption," 2006 Annual meeting, July 23-26, Long Beach, CA 21207, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Garrett M. Broad, 2023. "Improving the agri-food biotechnology conversation: bridging science communication with science and technology studies," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 929-938, September.
    3. Sarah Ruth Sippel, 2023. "Tackling land’s ‘stubborn materiality’: the interplay of imaginaries, data and digital technologies within farmland assetization," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 849-863, September.
    4. Ahearn, Mary Clare & Armbruster, Walt & Young, Robert, 2016. "Big Data's Potential to Improve Food Supply Chain Environmental Sustainability and Food Safety," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(A), pages 1-18, June.
    5. Johansson, Robert C. & Cooper, Joseph & Vasavada, Utpal, 2005. "Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 42-53, April.
    6. Eddy Ng & Ronald Burke, 2010. "Predictor of Business Students’ Attitudes Toward Sustainable Business Practices," Journal of Business Ethics, Springer, vol. 95(4), pages 603-615, September.
    7. Kok, Kristiaan P.W. & Klerkx, Laurens, 2023. "Addressing the politics of mission-oriented agricultural innovation systems," Agricultural Systems, Elsevier, vol. 211(C).
    8. Padilla-Bernal, Luz E. & Lara-Herrera, Alfredo & Rodriguez, Alberto Velez & Loureiro, Maria L., 2018. "Views on Sustainability and the Willingness to Adopt an Environmental management System in the Mexican Vegetable Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3), February.
    9. Karly Burch & Julie Guthman & Mascha Gugganig & Kelly Bronson & Matt Comi & Katharine Legun & Charlotte Biltekoff & Garrett Broad & Samara Brock & Susanne Freidberg & Patrick Baur & Diana Mincyte, 2023. "Social science – STEM collaborations in agriculture, food and beyond: an STSFAN manifesto," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 939-949, September.
    10. Udith Jayasinghe-Mudalige & Alfons Weersink & Brady James Deaton & Mike Trant, 2007. "Effect of urbanisation on the adoption of environmental management systems in Canadian agriculture," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(3), pages 316-325.
    11. Julie Guthman & Michaelanne Butler, 2023. "Fixing food with a limited menu: on (digital) solutionism in the agri-food tech sector," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 835-848, September.
    12. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    13. Lyons, Thomas S. & Miller, Steven R. & Mann, John T., 2017. "A New Role for Land Grant Universities in the Rural Innovation Ecosystem?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(2), July.
    14. Hilary Oliva Faxon, 2023. "Small farmers, big tech: agrarian commerce and knowledge on Myanmar Facebook," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 897-911, September.
    15. Cornelius Heimstädt, 2023. "Making plant pathology algorithmically recognizable," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 865-878, September.
    16. Gagnon, Mark A. & Heinrichs, Pamela A., 2016. "Food Entrepreneur Sustainable Orientation And Firm Practices," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4), pages 1-18, October.
    17. Daniel Velden & Joost Dessein & Laurens Klerkx & Lies Debruyne, 2023. "Constructing legitimacy for technologies developed in response to environmental regulation: the case of ammonia emission-reducing technology for the Flemish intensive livestock industry," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(2), pages 649-665, June.
    18. Tingey-Holyoak, Joanne & Pisaniello, John & Buss, Peter & Mayer, Wolfgang, 2021. "The importance of accounting-integrated information systems for realising productivity and sustainability in the agricultural sector," International Journal of Accounting Information Systems, Elsevier, vol. 41(C).
    19. Claassen, Roger & Cattaneo, Andrea & Johansson, Robert, 2008. "Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice," Ecological Economics, Elsevier, vol. 65(4), pages 737-752, May.
    20. Sarah Ruth Sippel & Moritz Dolinga, 2023. "Constructing agri-food for finance: startups, venture capital and food future imaginaries," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(2), pages 475-488, June.

    More about this item

    Keywords

    Agricultural Finance;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uwauwp:333555. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aruwaau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.