TLDR:
Key Points:
- AgFunder has about $200 million in assets under management and invests in early-stage food tech and ag tech seed to series A companies.
- Investor expectations have shifted in the current investment climate, making it challenging for companies to achieve profitability and secure funding.
In the latest episode of the Investment Climate Podcast, Alex Shandrovsky interviews Rob Leclerc, the founding partner of AgFunder, a company with $200 million in assets. Rob discusses the current market shift affecting investor expectations and the challenges faced by companies in the alternative protein sector.
Key findings from the podcast episode include:
- Market Shifting: The tech valuations that were prevalent in 2021 are no longer the norm, and cheap interest-free money has become more expensive.
- Alternative Protein Situation: Companies in this sector face challenges related to high input costs, premium product offerings, and competition on taste and texture.
- Venture Capital Expectations: Investors are seeking a 10x return on their investments, making it difficult for companies to achieve profitability with early funding rounds.
- Company Strategy: Founders must navigate the noise of outreach tactics and focus on building warm connections with potential investors.
- Founders/CEOs Role: Successful CEOs demonstrate product focus, narrative drive, and a plan for profitability to attract investor interest.
