The value of these deals also dropped from $1.7 billion to $1.6 billion in the period, the report said.
The downward trend in both deal value and count underscores the “ongoing recalibration” in the sector following the volatility of the past several years, the company said, reflecting a more selective investment environment.
While the total capital invested remained relatively robust, the number of deals fell to its lowest point in recent years, suggesting that investors are focusing their resources on fewer, higher-quality opportunities.
This trend, said Pitchbook, has led to a more challenging fundraising environment for emerging startups, but it has also created opportunities for established companies to consolidate their market positions and attract significant follow-on capital.
Ag biotech is hot…
Agtech VC investment activity in the periods was led by the agricultural biotechnology (ag biotech) segment, which attracted $797.4 million across 55 deals, making it the largest recipient of capital and deal flow for the quarter.
Precision agriculture followed, securing $266.2 million from 38 deals, driven by persistent demand for automation, robotics, and data-driven solutions that address labour shortages and operational inefficiencies.
The agrifinance & e-commerce and animal agriculture (animal ag) segments saw moderate activity, with $222.4 million across 21 deals and $175.8 million across 19 deals, respectively.
… indoor farming isn’t
Indoor farming remained the smallest segment by both value and count, raising $156.4 million from just four deals, underscoring ongoing challenges in scaling capital-intensive operations.
Exit activity limited
Exit activity also continues to fall. with just $40.3 million exited across 11 deals in Q1, a sharp decline from the $274 million exited across 10 deals in Q4 2024.
This drop in exit value reflects the broader market’s hesitancy as public markets remain volatile and strategic acquirers adopt a wait-and-see approach, the report claimed.
The limited number of exits and the relatively small exit values highlight the challenges facing agtech startups seeking liquidity and underscore the importance of building sustainable, long-term business models that can weather periods of market uncertainty.
“Investors are concentrating their capital on companies with proven technologies, established customer bases, and clear paths to profitability,” the report concluded. “This dynamic is likely to persist as the sector continues to mature and as investors seek to balance risk with the potential for outsized returns.
“Companies that can demonstrate innovation, scalability, and a clear value proposition will be best positioned to attract capital and drive the next wave of transformation in global agriculture.”
