In an update posted today at The Wall Street Journal Online, Christopher Zinsli noted that, “After some ups and downs last year, global investment in agricultural technologies is back on track.
“World-wide venture investment in the sector surpassed $684.8 million across at least 74 rounds through Aug. 6, according to Dow Jones VentureSource. This puts the sector on track to beat last year’s record of $1.09 billion raised across 95 rounds.
“The U.S. still takes the lion’s share of capital, with $455.7 million going to ag startups there so far this year. But Europe is seeing a resurgence: There were 27 European ag deals through Aug. 6, compared with 26 in the U.S.”
The Journal item noted that, “In large measure, this is a result of the continent’s top-down strategy of supporting its ag startups. Government-backed funds, such as Hungary’s Hiventures, are among the most active investors in the sector this year.
“Meanwhile, Finistere Ventures has made two investments from ag-focused funds it manages that are backed by Ireland’s sovereign development fund, according to a spokeswoman. The deals haven’t been announced.”
Today’s Journal update added that, “Europe’s newly increased pace shows what can happen when a small sector gains a collection of dedicated investors. The U.S. ag sector has largely lacked this critical mass of investors. The governments of Europe appear to be happy to play this role there.”
