TLDR:
- FMC Ventures managing director Mark Brooks discusses the challenges and opportunities in agtech investment over the next decade.
- Agtech startups have seen slow adoption and few exits, with $30-40 billion of venture capital largely incinerated.
FMC Ventures managing director Mark Brooks recently sat down with AgFunderNews to share his insights on the next 10 years in agtech investment. He highlighted the unique challenges faced by agtech startups, including slow adoption rates and limited exits compared to other sectors. Despite the downturn in funding, Brooks believes that venture capital is still a suitable investment vehicle for agtech due to its impact on food security and the health of the planet. He emphasized the importance of patient capital in agtech and warned against inflating valuations by investors unfamiliar with the industry.
Brooks also discussed the changing landscape of agtech investment, predicting a shift towards impact funds and sustainability-focused funds in the next decade. He highlighted the role of corporate venture capitalists (CVCs) in supporting the agtech ecosystem and providing valuable expertise in navigating regulatory challenges. Brooks expressed optimism about the future of ag biologicals as an investable category, citing the potential for mergers and collaborations to address gaps in technology and delivery capabilities.
Looking ahead, Brooks identified agrifintech, generative AI, and genetic editing as exciting areas of innovation in agtech. He acknowledged concerns about regulatory challenges and the need for patience in the industry, emphasizing the importance of global collaboration to ensure access to innovative solutions for growers worldwide. Overall, Brooks remains optimistic about the future of agtech investment, with a focus on sustainability, impact, and technological innovation driving the industry forward.
