Agtech start-ups continue to face a capital crunch as venture capital funding remains sluggish, but the lull in activity might be a perfect time for founders — and investors — to capitalize on the moment by creating innovative solutions that deliver value to growers, Nina Meijers, executive director of innovation for Rabobank, told AgTechNavigator.
In recent years, investors in software-as-a-service companies pushed back on ag and food-tech, leading to lower valuations for start-ups, Meijers explained at Future Food-Tech Chicago last month. Agtech investment totaled $1.6 billion across 137 deals in Q1 2025, a drop from $1.7 billion across 182 investments, according to Pitchbook data.
The agtech industry is still attracting significant capital — billions — despite recent downturns in VC funding, Meijers noted. Start-ups that can address labor shortages and boost growers’ incomes in meaningful ways are likely to receive funding, she added.
“There is still significant capital flowing into this space. So, for the businesses that are solving these challenges and in a very pragmatic, prudent business- and fundamental-focused way, there is still capital there. So, it is not all doom and gloom,” she elaborated.
Revenue-generating partnerships crucial for start-ups
Interest in agriculture technologies — like data platforms, gene-editing techniques, seed technologies and biologicals — remain strong, but start-ups are retooling their business strategies amid increased investor scrutiny, Meijers explained. Start-ups are increasingly “focused on the most basic business fundamentals” to attract investors, Meijers said.
“The metrics of success are different than they were three or four years ago. So, things like recurring revenue, obviously margins, commercial traction through partnerships ... having those really be tied to the core focus of the start-up business, that is almost table stakes for investors that are looking at these businesses,” she elaborated.
A look back at strategic partnership news in June
Last month, ag inputs company Corteva invested in Brazilian ag biologicals company Symbiomics’ Series A round, which included a commercialization partnership. Earlier in the month, automation start-up Agtonomy partnered with original equipment manufacturer Kubota to bring its service to Kubota’s suite of small- and medium-sized vehicles.
Commercial partnerships between a start-up and a larger company are becoming increasingly frequent and creating opportunities for ag-tech start-ups to scale and learn about the market, Meijers explained. However, start-ups should focus on partnerships that go beyond just a pilot project to deals that produce recurring revenues, she added.
“Those commercial partnerships are being taken as a real proof point for investment. ... Commercial partners are scrutinizing these partnerships significantly, and the start-up should be as well,” Meijers said.
She added, “Start-ups need to be really intentional about who they are bringing in and including in their cap table and really think about transparency, setting KPIs from the get-go and how this partnership — whether it is a financial and a strategic partnership — is going to help advance [their] goals as a start-up.”
