#Sementis: 50% drop in investments in agrifoodtechs - What’s next?

#13 - March in LATAM - Sementis

Mar 30, 2024

Holaaaa, Oláaaaa, Helloooo

Autumn in the South, spring in the North.

And here, in the southern hemisphere, the summer ended hot!

The thermal sensation reached 50.6°C (123°F) in the city of Sauce Viejo, in Santa Fe, Argentina. And if our “hermanos” from the Clarin newspaper considered the city as “a place like a hell on earth”, what would they say about the capital of Rio de Janeiro with 62.3°C (144°F)? 🔥

Well, the famous song “Rio 40°C” by Fernanda Abreu can now only be applied in winter.

Sandy, on the other hand, can be right when she sings “Autumn is always the same, the leaves fall at the end”, as El Niño is expected to weaken and enter its neutral phase, returning normality to the season. And, it seems, we will have La Niña possibly only in the second half of the year.

For now, we continue with the “March waters closing the summer”. Well, I'm very musical this month, let's get to the news!

In this edition, you'll find the AgFunder Global AgriFoodTech Investment Report 2024, which showed a 50% drop in investments in agrifoodtechs in 2023. What's next? I interviewed Fernando Rodrigues (Rural Ventures) and Kieran Gartlan (The Yield Lab) in the Highlights section.

Besides this drop in 2023, the first quarter of 2024 closed with new investments (BemAgro, umgrauemeio, Nextron, GrowPack), and M&As (Casa Bugre and Krilltech, Syngenta and Produtécbica), only in March!

And with news such as the Rural Summit and my article for HSM, the country's leading management and leadership magazine. Hey, ho, let's go!

Buuuuut, before we start, I would like to ask you to sign up for the Newsletter for free, just to support my work.

Disclaimer: The views and opinions expressed here are solely my own and don’t necessarily reflect the views or positions of any entities I represent.

Let's go!

Topics we will cover:

🌱 Ag
🍇 Food
🌤️ Climate
💡 General News
👩🏻‍💻 Publications
🗓️ Events
💼 Job Openings
💬 Quote of the Month
👀 Before you go…

Curitiba (BR) will have an app to help combat food waste in stores and restaurants

General:

Highlights:

50% drop in investments in agrifoodtechs - What’s next?

On March 14, the 2024 edition of the AgFunder Global AgriFoodTech Investment Report was released, which showed a 50% drop in investments in agrifoodtechs (US$ 16 billion) in 2023 compared to the previous year (US$ 31 billion), reaching the lowest point in six years.

According to the report, 2024 will be a difficult year globally, "but it will also be an incredible year to invest in new companies that have been forced to rethink their business models and adopt a leaner approach; this is healthy for the market and for valuations".

“In 2024, you can’t keep losing money and expect to stay in business. We need to set a more realistic expectation and go back to the fundamentals” quoted Matilda Ho (Bits x Bites) in the report.

What's next? I interviewed Fernando Rodrigues (Rural Ventures) and Kieran Gartlan (The Yield Lab) to get a better understanding of the scenario:

Kieran, what does the 50% drop in global investment in agrifoodtech represent?

Kieran: The drop was a natural reflex as a result of the fall in Venture Capital in general (divided into high interest rates that attract more capital to the fixed income market and less to the risk markets).

As a founder of a startup, should I be worried? What advice would you give me?

Kieran: For the best founders, it won't be a problem. It even gets easier, because there is less smoke/hype. Investors are more selective and in less of a hurry in general, but when interesting things appear they will want to close quickly (so as not to miss out). The main criteria for entrepreneurs to prioritize when fundraising are:

Show what the opportunity is for the investor to multiply their investment, it's not a sales pitch, don't keep selling the product/solution. Show the size of the market and how you're going to access it with truly innovative technology. To be credible, you have to have founder-market-fit (entrepreneurs have to show expertise in the market in which they operate, it's not enough just to be a technology expert).
Focus on the business model. Show unit economics, CAC, LTV etc.
Be original, or at least have original insights into the problem/solution/market/market access/market timing or another point that the investor will remember and comment on later.

Rodrigues: Regarding fundraising, it is essential to effectively communicate the potential of your solution to attract investors. This includes highlighting not only the underlying technology, but also the tangible benefits it offers producers and agribusiness as a whole. In addition, it is essential to understand the investment cycle and investors' preferences regarding risk and return.

In conclusion, founders of agrifood startups must pay attention not only to technological innovations, but also to how these innovations are communicated and delivered to the market. By developing simple, accessible products with clear benefits, and by adopting effective fundraising and go-to-market strategies, startups can position themselves competitively in a constantly evolving sector.

Read the full interview in the Newsletter Rural Insights

Open Innovation in Brazil - Who are the professionals behind the transformation?

Sling Hub, with the support of Accenture Brasil, has just launched the report "Open Innovation in Brazil - Who are the professionals behind the transformation?".

Driven by and alongside giants of the ecosystem, such as Accenture Brasil, Ajinomoto Co., Inc., Ambev, BeON, Cubo Itaú, EDP Brasil, EY, iFood, Monking and Startups, the survey obtained a sample of more than 200 professionals, mapping the profile of those who work with the topic in Brazil, which I highlight here:

Men make up 60% of the market, while women 40%.
77% of working women are up to 40 years old and only 23% are 41 or over.
For men, the distribution is less extreme, with 54% of working professionals being up to 40 years old.

We are almost half of the professionals in the sector, but we need to consider the proportion of women over 40 in recruitment processes.

Only 5% of respondents declared themselves to be black
Whites account for 3/4 of respondents
72% are from the Southeast

The lack of racial diversity is alarming and calls for an urgent change in companies' innovation targets and selection processes, with affirmative action.

There are several studies that prove that diversity generates innovation (and revenue!). Our country is so vast and diverse, with gigantic creative potential, that you can't think of "open innovation" inside a bubble (controversial, isn't it?).

Regarding the use of technology, I would highlight the incorporation of AI into day-to-day activities for 9 out of 10 professionals, using it every day (20%), often (36%) or sometimes (35%).

I also found it very interesting that 23% of respondents use newsletters like this one to keep up to date on the market.

Emerging technologies in agribusiness: how are they applied within the gatehouse?

Emerging technologies, or 4.0, have been used in all stages of production, from genetics and biotechnology, connecting crops and animals, opening the gates of the paths they travel, through logistics, towards industry, retail, domestic and international markets, until they reach the end consumer.

But how do they apply to agribusiness and, more specifically, to farms? Read my article with Rural Ventures for HSM Magazine to know more.

Rural Summit brings AgFoodClimateTechs and investors face to face

Registration for the second edition of the Rural Summit 2024 is now open!

Organized by Arara Seed, Rural Ventures and The Yield Lab, the event will take place on May 2 in Ribeirão Preto, SP, with partners such as Cubo Itaú Agro, São Martinho, the country's main innovation hubs and official AgFeed coverage.

Agri Matching (startups <> investors/corporates face to face): investors/corporates and startups free registration
Forum: your team and guests can register for free at the link
Sponsorship: send me a message to know more

Call for Startups:

🇧🇷 April, 14: Carbon - Natura Innovation Challenge (NIC)
🇧🇷 April, 20: AptaHub Conecta
🇧🇷 April, 21: Braskem - Oxygea Labs
🇧🇷 May, 16: Sebrae Startups Award
🌎 The Curt Bergfors Food Planet Prize

Upcoming events:

🇧🇷 Apr, 8 - 12: Tecnoshow Comigo
🇧🇷 Apr, 15-16: Web Summit
🇨🇱 Apr, 25: Global Cherry Summit
🇧🇷 Apr, 29 - May, 3: Agrishow
🇧🇷 May, 2: Rural Summit
🇧🇷 May, 21-23: Showtec
🇧🇷 May, 21-25: AgroBrasília
🇨🇱 May, 24: Agrotrade Chile 2023

Save the Date: 🇧🇷 Jun, 27-28: Global Agribusiness Festival - GAFFFF - the largest agfoodtech festival in the world

2024 LATAM Events Full List

🇦🇷 Accenture - ESG Reporting Project Manager
🇦🇷 Amauta Agro - Marketing Manager
🇦🇷 Deloitte - Sr. ESG Assurance and Integrated Reporting Consultant
🇦🇷 fyo - Marketing Manager
🇦🇷 Hortifrut - Head of Sustainability/ESG Management and Integration
🇦🇷 KWS Group - Agricultural Sales Talent Community
🇦🇷 Nestlé - Key Account Specialist
🇧🇷 Aliare - Growth Coordinator
🇧🇷 BemAgro - Customer Success Analyst
🇧🇷 Bunge - Senior Sustainability Analyst
🇧🇷 Cargill - Sustainability Consultant
🇧🇷 CHS South America - ESG Director
🇧🇷 Confidential - Head of Partnerships
🇧🇷 Cubo Itaú - Marketing Manager
🇧🇷 Imaflora: Project and Services Coordinator | Carbon on Track
🇧🇷 Limagrain - LFS Deputy Head of Territory Americas
🇧🇷 moray.ai - Product Coordinator
🇧🇷 Rainforest Alliance - Senior Associate, Supply Chain and Project Monitoring & Evaluation
🇧🇷 Seedz - Customer Success Latam: Confira esta vaga na Seedz
🇨🇴 Koltiva - Regional Product Operations and Innovation Manager
🇨🇴 KPMG - Senior ESG Consultant
🇨🇴 Sutherland - Manager - ESG, Energy & Sustainability
🇨🇴 ME&A, Inc. - Learning Specialist (USAID/Colombia)
🇨🇴 Palladium: Make it Possible: Communications Manager - Sustainable Agriculture
🇨🇴 World Food Programme - Resilience and Climate Change Program Officer
🇨🇱 Culture Recruitment Group - Sales Manager
🇨🇱 Nuveen, a TIAA company - Farm Operations Manager
🇨🇱 Tridge - Global Sales Manager (Suppliers/Producers)
🇲🇽 Flex - Global Sustainability/ESG compliance specialist
🇲🇽 S&P Global Commodity Insights Agriculture & Food - Associate Editor, Agriculture & Food Pricing

“Culture does not make people. People make culture. If the full humanity of women is not our culture, then we can and must make it our culture”. - Chimamanda Ngozi Adichie