EMERGING TECH RESEARCHAgtech ReportVC trends and emerging opportunitiesQ42023REPORT PREVIEWThe full report is available through the PitchBook Platform.CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 2ContentsInstitutional Research Group AnalysisQ4 2023 Agtech ReportPublishingReport designed by Chloe Ladwig & Julia MidkiffPublished on January 26, 2024DataTJ Mei Data AnalystVertical update3Q4 2023 timeline5Agtech landscape6Agtech VC ecosystem market map7VC activity8Emerging opportunities26Digital twins27Select company highlights29Aphea.Bio30Halter32Alex Frederick Senior Analyst, Emerging Technologyalex.frederick@pitchbook.compbinstitutionalresearch@pitchbook.comFor previous updates as well as our complete agtech research, please see the designated analyst workspace on the PitchBook Platform.What else would you like to see in this report?Send your ideas to alex.frederick@pitchbook.com. We look forward to hearing from you.Q4 2023 Agtech Report34512Ag biotech Agrifinance & e-commerce Indoor farmingAnimal ag Precision agAgtech landscape35421CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 8Q4 2023 Agtech ReportVC activityThe agtech ecosystem experienced a decline in VC deal value and count in Q4, totaling $1.4 billion across 181 deals. These declines, -34.7% and -17.4% QoQ, respectively, were a reversion to a trend that was bucked in Q3 when we logged a 24% increase in deal value. In total, the quarterly deal activity declines in 2023 have added up to nearly a 40% reduction in deal values and deal counts YoY. We logged $7.1 billion invested across 952 deals in 2023, down 39.5% and 39.2% YoY, respectively.Despite dismal venture activity, there were notable deals to be had. FBN closed a $154.9 million late-stage VC round in the form of a convertible note. FBN has evolved significantly from its founding as a farmer-to-farmer sharing network to a comprehensive platform offering an input marketplace, marketing support, insurance programs, and credit to farmers. It was an early adopter of GenAI tools and recently partnered with ADM to enroll farmers in its regenerative ag program. Indoor farm operator Bowery raised the second largest deal of the quarter with a $93.8 million Series D. The deal valued the company at $941.8 million post-money, a considerable down round from its Series C1 in 2021 that valued the company at $2.3 billion. Indoor ag companies have faced significant headwinds over the past two years, including high startup costs, rising energy costs, and dwindling investor support. Although struggles are likely to continue in the near term, in the long term we expect business models and technology to continue to evolve and investors to become increasingly savvy to the complexities, challenges, and opportunities of the indoor farming industry.Source: PitchBook • Geography: Global • *As of December 31, 2023Agtech VC deal activity by quarter0100200300400500600$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4...
