AGFUNDER-2021年农业食品科技报告（英文）-2021.3-58页_9mb

AgFunder AgriFoodTech Investment Report Summary

Core Content

AgFunder is a digitally-native venture capital fund that invests in transformational foodtech and agtech startups. The report highlights the significant growth and evolution of the AgriFoodTech sector in 2020, driven by the impact of the Covid-19 pandemic. It provides an overview of global investment trends, key categories, and notable deals, while also making predictions for 2021 and beyond.

Main Points

• Global Investment in 2020: AgriFoodTech startups raised $26.1 billion in 2020, with a predicted total of $30.5 billion for the year. This represents a 34.5% growth over 2019.
• Deal Activity: A total of 2,707 deals were closed in 2020, projected to reach 3,093 deals.
• Investment Shift: Upstream investment surpassed downstream for the first time in seven years, with $15.8 billion invested upstream and $14.3 billion downstream.
• Key Categories:
  • Ag Biotechnology: Raised $1.6 billion, with a 60% YoY increase, driven by gene editing and microbiome technologies.
  • Innovative Food: Raised $2.3 billion, doubling from 2019, with alt-protein companies like Impossible Foods and Memphis Meats leading the charge.
  • Midstream Technologies: Raised $5.3 billion, with a 30% increase in deals. Lineage Logistics' $1.6 billion round was a major contributor.
  • eGrocery: Raised $5.1 billion, fueled by the pandemic's impact on consumer behavior and increased online shopping.
• Early-Stage Growth: Early-stage investment increased by 10% in dollars and 15% in deals, with a 10% increase in median deal size. This trend was more pronounced in upstream categories.
• Geographic Trends:
  • US: Regained market share with 37% of deal activity and 51% of investment, attributed to the pandemic and investor confidence.
  • China: Maintained the second position with a significant portion of eGrocery investment, though deal count dropped by 21%.
  • Europe: Deal activity and investment remained relatively stable with a slight increase in the number of deals.
  • Africa: Closed more deals (+30%) but raised 50% less in dollars due to its early-stage market.
  • Asia: Closed 7% more deals YoY.
• Corporate and Startup Engagement: AgFunder encourages engagement from corporates, startups, and investors and provides a platform for learning more about the sector and its portfolio companies.

Key Insights

• Maturity of the Sector: Agrifoodtech is no longer an early-stage industry, with first-wave innovators maturing and raising larger rounds.
• Investor Confidence: The pandemic reinforced the importance of efficient supply chains and alternative food production methods, leading to increased investment in midstream and innovative food startups.
• Early-Stage Opportunities: Early-stage investment continued to grow, indicating a shift in investor focus towards innovation and entrepreneurship.
• SPACs and Public Markets: Early-stage companies may benefit from SPACs, which offer a dynamic exit environment and support the growth of high-potential foodtech startups.
• Consumer Trends: There is a growing preference for sustainable, plant-based, and locally sourced food, with consumers increasingly concerned about the origins and environmental impact of their food choices.

Predictions for 2021 and Beyond

• SPACs: Early-stage businesses may go public via SPACs, creating new exit opportunities and encouraging innovation.
• eGrocery Growth: eGrocery will continue to disrupt traditional retail, with consumers favoring online platforms for product discovery.
• Animal Agriculture: The sector will shift towards regenerative practices, carbon neutrality, and premium offerings as plant-based alternatives become more competitive.
• Supply Chain Efficiency: Investors will continue to support supply chain innovations, including cold chain logistics and last-mile delivery solutions.

Top Deals by Category

• Ag Biotech: Highlighted by companies like Pivot Bio and Ginkgo Bioworks.
• Novel Farming Systems: Companies such as Infarm and RootAI made notable strides.
• Innovative Food: Impossible Foods, Memphis Meats, and Mosa Meat led with significant funding rounds.
• Midstream Tech: Lineage Logistics' $1.6 billion round was a standout.
• eGrocery: Chinese companies led with $2.9 billion in investment, while US-based Instacart and India's BigBasket were notable.
• Cloud Retail Infrastructure: REEF and Nuro received major investments for enabling at-home dining.

Trends in Deal Activity

• Upstream vs Downstream: Upstream investment increased by 68% YoY, while downstream saw a decline.
• Median Deal Sizes: Growth stage and late-stage deals saw significant increases in median sizes, indicating a more mature sector.
• Early-Stage Activity: Despite the pandemic, early-stage deals increased, with seed and Series A rounds seeing growth in both volume and size.

Conclusion

The AgriFoodTech sector is experiencing rapid growth and transformation, with increased investment in upstream technologies and a shift towards sustainability and efficiency. AgFunder continues to play a pivotal role in supporting and investing in the next generation of food and agriculture innovations.