According to AgFunder data, investment in agrifood technology in Latin America varies significantly from country to country, with some covering the entire supply chain while others focus on specific categories.
In 2022, agrifood startups in the region raised a total of USD 1.7 billion, representing 5% of global investment in the sector. As more capital flows into these startups, which are mostly in early stages of growth, we are likely to see greater diversification among countries, addressing different points in the supply chain.
Brazil remains the leading market for agrifood technology in Latin America, hosting a wide range of startups that span the entire supply chain. Many of the major agrifood technology investments in the region in 2022 were directed towards Brazilian companies, such as Agrolend (agri-fintech platform), Evino and Trela (eGrocery services), and Re.green (climate technology startups).
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On the other hand, Mexico also shows strength in categories like eGrocery and Cloud Retail, and closed 25 deals last year.
Additionally, the country is starting to diversify its innovation and investment in agrifood technology, particularly in the field of bioenergy. With the overall increase in investment in agri-food technology, we are likely to see more deals in Mexico, both in companies related to agricultural production and in the laboratory setting.
What does this mean for Latin American venture capital firms?
- Increased investment opportunities: The growth of technology agrifood startups in Latin America means more investment opportunities for venture capital firms in the region. They can actively participate in funding innovative companies and contribute to the development of the agri-food sector.
- Market diversification: As the investment landscape in Latin America’s technology agri-food sector expands, venture capital firms can diversify their portfolios by investing in startups across different countries and categories. This diversification can help mitigate risks and maximize potential returns.
- Collaborative ecosystem: The rise of technology agri-food startups in Latin America creates a collaborative ecosystem where venture capital firms can collaborate with other investors, industry experts, and strategic partners. This collaboration can foster knowledge sharing, co-investment opportunities, and overall growth of the venture capital ecosystem in the region.
What does this imply for Latin American agri-foodtech startups?
- Increased investment potential: The growth of the agrifoodtech sector in Latin America opens up greater investment potential for companies in the region. They have the opportunity to attract funding from venture capital firms and other investors, which can fuel their growth and expansion.
- Access to expertise and resources: With the attention and interest from investors, Latin American agrifoodtech companies can gain access to valuable expertise, networks, and resources. This can help them enhance their operations, scale their businesses, and overcome challenges more effectively.
- Validation and market recognition: The interest and investment in Latin American agrifoodtech companies serve as validation of their innovative solutions and market potential. It can enhance their credibility, attract further partnerships, and increase their visibility in the industry.
To read the information in detail, visit: AgFunder News
