UK and European agri-tech growth attracts £81bn of investment as technology takes over

Since the turn of the century – when worldwide investment stood at less than £1bn – companies headquartered in the UK and mainland Europe have attracted more than 43 per cent of global investment in agritech. These 564 companies have received nearly £81 billion from over 1,700 investors.

The evaluation, by tax specialists, GovGrant, coincides with an increase in the global population and an increasing trend in agritech companies developing technologies to meet the demand for high-quality food.

The top three investors in the UK are Innovate UK which has invested in 38 companies, followed by Scottish Enterprise and EIT Food, which have invested in eight and seven firms respectively.

Global investors are led by Horizon 2020, SVG Ventures-THRIVE and the afore-mentioned Innovate UK, which is a government backed research and innovation agency.

They have invested in 41 companies across the world while The National Science Agency (an independent agency of the United States government that supports research and education in science and engineering) and MassChallenge have invested in 40 and 33 companies respectively.

The UK specialises in indoor farming and animal agritech, which account for around 40 per cent of its investment in agritech. Whereas globally or Europe-wide, these segments make up under 10 per cent of the investment. With significant expertise in these areas, there is great potential for UK growth and differentiation here.

Animal agritech concentrates on solutions to monitor, analyse and optimise animal health and production. It also explores animal substitution through alt proteins.

Indoor farming, meanwhile, involves components, systems and growers that are all focused on farming indoors. This includes technologies contributing to vertical farming, aquaponics and hydroponics. London-based Vertical Future raised the largest-ever series A investment for a European indoor farming company: £21m, which included participation from SFC Capital.

Adam Simmonds, Research Associate at GovGrant, said: “The rise in agritech investment in recent years is nothing short of remarkable. And as the world faces surging food demand, it’s also becoming increasingly urgent to curb emissions from food production. This combination of factors only makes the case for agritech more compelling, so we can expect even more investment.

“Venture capital will account for most of the early investment, particularly for agritech startups. Then, private equity investors will come on board to help thriving companies grow. And as agritech becomes ever more vital and goes more mainstream, many agritech companies will be listed on stock exchanges. It all points to more-than-healthy growth for the sector.

“In the UK, indoor farming and animal agritech will be at the forefront of this growth. We have so much knowledge in these areas that it can power the future direction of our agritech industry for years to come.”