What 2025 Agtech Investment Trends Should You Know About?
Leaders from FMC Ventures, The Bill and Melinda Gates Foundation, Leaps by Bayer, Aqua Capital, and Grosvenor Food & AgTech share the key trends shaping the industry’s evolution.
December 19, 2025
The agri-food technology market is showing signs of recovery after a turbulent period. VC funding fell 49% in 2024, but the sector is adapting. Pitchbook data revealed that $1.6 billion was invested across 159 deals in Q3 2024 – a 15% increase in deal value compared to the previous quarter, reflecting a shift toward larger more strategic investments.
Pitchbook has described this as a “flight to quality” with investors prioritizing profitability, conducting deeper due diligence, and focusing on businesses with strong potential. Stabilizing valuations are helping founders and investors align, emphasizing quality over quantity in deal-making.
As 2025 approaches, there are signs of cautious optimism, but questions persist about the role that corporate investors, private quality funds, and family offices play in scaling technologies and meeting industry goals.
Current Landscape: Approaches, Innovations & Successes in 2024
The focus on validated, scalable solutions emerged as a consistent theme in 2024. Stephan Dolezalek, Managing Partner at Grosvenor Food & AgTech, highlighted the need for proven technologies that resonate with customers and can be scaled effectively. “We focus on ‘impact at scale, not individual sectors or technologies,” he explained. “Companies need to demonstrate that their technology works, customers love it, and it can be scaled to make a difference.”
This sentiment aligns with Vipula Shukla, Senior Program Officer at The Bill & Melinda Gates Foundation, who emphasized problem-specific investments: “Our investment hypotheses always start with a simple question: what is the specific problem we’re trying to solve, intentionally to drive farmer productivity and profitability? We target actionable components of farming systems in the context of climate change.”
Providing examples for promising agri-tech solutions in the current investment climate, Mark Brooks, Managing Partner at FMC Ventures, highlights the rapid growth of robotics start-ups: “The pace and size of recent fundraises for mechanical and laser weeding start-ups like Carbon Robotics have been surprising.” However, he remains skeptical about the broader application of robotics, stating, “Weed spraying is the only real use case for in-field robotics.”
In contrast, Sara Olson, Senior Director of Venture Investments Agriculture at Leaps by Bayer, explored epigenetics as a transformative tool to address climate variability. “This is an area that will contribute significantly to venture returns in ag in the next decade,” she noted, citing its potential to modify crop traits and help growers respond to stressors in-season.
Vision for 2025: Promising Business Models, Categories & Technologies
Stephan Dolezalek sees promise in companies moving toward profitability: “Some of the big winners will come from currently disfavored categories. Survivors with little competition will have the edge.” As the agtech landscape evolves, what are some of the categories poised for impact in 2025?
Next-generation crop protection emerged as a shared priority. Vipula Shukla called for disruption in this sector: “For too long, this sector has relied on recycled or reformulated older modes-of-action. Next-generation chemistry, biologicals, and knowledge/AI tools will create a whole new paradigm for managing pests and diseases.”
The potential of agri-fintech to increase supply chain visibility and streamline input movements was also highlighted by investors. “The agriculture of the future won’t just be about who makes the best, most sustainable inputs, but about who can finance and move those inputs throughout the channel most efficiently,” Mark Brooks said.
Genetics continues to captivate investors. Brooks highlighted opportunities in gene-editing tools and the realization of sprayable traits: “There’s tremendous potential to better synergize crop protection traits with yield or flavor traits,” he said. “However, the same editing tools are used by many, and big opportunities lie in developing new and better tools, especially non-transgenic ones.” Sara Olson further emphasized the potential of epigenetics to drive crop resilience and adaptability, building on the progress made in 2024.
In machinery and equipment, robotics and drones are predicted to perform well. “Technologies that allow growers to operate across increasing variability – like robots and drones – will also be critical,” Olsen said. “However, heightened competition in this space means we may see high-profile mergers or wind-downs in 2025.”
AI and machine learning also stand out as transformative. Brooks frames the maturity of AI in agtech as a progression: “We’re still at step one: providing answers. The future lies in predicting and asking the right questions.” He also emphasizes the need for innovators from adjacent industries like drug discovery to bring fresh perspectives to agtech. Meanwhile, Vipula Shukla underscored the importance of tangible AI applications that solve real farming problems, hinting at the emergence of impactful use cases in the near future.
Exit Environment: IPOs, M&A & Financial Trends
The exit landscape remains cautious. Stephan Dolezalek projected limited IPO activity in 2025, citing the need for greater policy clarity and economic stability. “An IPO window is unlikely to develop until there is greater clarity on the new administration’s policies,” he noted. “Larger companies will preserve cash until M&A becomes advantageous, likely pushing transactions to 2026.”
Vipula Shukla emphasized the need for patience: “The exit environment will continue to be challenging. Innovative companies will require patient capital, spent wisely, and some creative thinking about partnerships to achieve scale and sustainability.”
Sara Olson saw potential for increased private equity activity: “There isn’t much appetite among ag majors for large-scale M&A, but PE firms are hunting for businesses with attractive margins and growth potential. Start-ups showing sustained growth through 2023 and 2024 are best positioned for these transactions.”
Eli Ziskind, Partner at Aqua Capital, echoed these views, highlighting the growing role of financial players in post-commercialization exits driven by the climate impact features of many agtech companies.
Policy and Regulation: Navigating Uncertainty
Policy changes continue to shape the agtech landscape. Stephan Dolezalek underscored the challenges of an uncertain policy environment: “The U.S. elections have added another layer of uncertainty to an already volatile financial climate. Regulatory clarity in 2025 will be critical for companies to gain stability.”
Vipula Shukla observed a global trend toward restricted movement of commodities, labor, and technology, adding complexity to scaling efforts. However, she noted that breakthrough innovations solving real problems are likely to overcome these barriers. “Products that deliver incremental benefits are most vulnerable, but truly groundbreaking innovations will find a way to market,” she explained.
Sara Olson highlighted water regulation as an emerging policy focus. “With agriculture recognized as a net water exporter, technologies enabling growers to document and reduce water use will gain traction, particularly in high-value, water-constrained markets like California and Israel,” she said.
The Future of AgTech
The question remains: which technologies and start-ups will rise to the challenge and lead the way? The answer will shape the future of food and agriculture for decades to come.
From strategic discussions on economic trends and policy shifts to tangible insights into the innovation pipelines of corporates and investors, World Agri-Tech San Francisco has been designed to deliver impact. Gain tactical knowledge and make valuable connections to meet business goals and accelerate industry-wide progress.
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