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Major trends in agtech for 2018

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The disruption over the last decade in the retail food value chain gained momentum in 2017 with the IPO of Blue Apron, and acquisitions such as Bai Brands ($1.7 billion), Sir Kensington Condiments and Whole Foods by Amazon ($13.7 billion). This wave of disruption is being paralleled in the agricultural value chain, driven by increasing land turnover and altered land use, renewed focus on sustainability and, as in retail, changing consumer preference.

The disruption over the last decade in the retail food value chain gained momentum in 2017 with the IPO of Blue Apron, and acquisitions such as Bai Brands ($1.7 billion), Sir Kensington Condiments and Whole Foods by Amazon ($13.7 billion). This wave of disruption is being paralleled in the agricultural value chain, driven by increasing land turnover and altered land use, renewed focus on sustainability and, as in retail, changing consumer preference.

A continued slump in commodity prices has seen “Big Ag” facing declining margins and prompted a wave of consolidation to get cost efficiency, as well as a search for new innovation over the last three years. As key products in seed and chemistry have come off patent, the change imperative for the Big 6 has only strengthened. Coincidentally, the agtech investment landscape has exploded over the last decade, from a niche, opportunistic clade of the venture capital investment class, to a legitimate asset class attracting focused and generalist funds with dedicated agtech investment allocations.

In collaboration with PitchBook, Finistere quantified this activity — 2017 was another record investment year for the sector, with more than $1.5 billion deployed. Significantly, the sector saw more than 300 distinct investors and 160+ deals, contrasting the 31 deals and less than $200 million invested in 2007.

See full article at Yahoo News

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