Agricultural technology has never been the favorite of investment and is often classified as an industry that is unlikely to generate significant returns. But things are a little different these days, with data from Crunchbase showing that agtech startups received $5 billion in 2021, a 50% increase from 2020’s total funding for the industry. And before the first quarter of the year ended, $1 billion had already been invested in agtech startups.
Crunchbase points to a variety of factors driving this trend, including millennial consumer habits and needs, the pandemic and climate change, and the attractiveness of liquid investment opportunities for agtech companies.
In the agricultural technology industry, one of the more favored directions by capital is hydroponic vertical farming. On January 25 this year, Plenty, an American indoor vertical farming technology company, announced the completion of a $400 million Series E financing, setting a single financing record for an indoor agricultural enterprise so far.
Walmart, the world's largest retailer, also participated in Plenty's Series E round. Martin Mundo, Walmart’s senior vice president of U.S. produce sales, mentioned that in the past four years, Walmart has traveled the world, meeting many vertical farming companies and learning about new farming models. Walmart sees vertical farming as an environmentally friendly practice that ensures a year-round supply of high-quality and affordable produce.
