Due to the outbreak of the corona virus, a fragility has been uncovered in our supply chain, especially in agri-food.
There are many entrepreneurs, investors and other food tech professionals that have been helping to power growth in the agri-food technologies sector for many years now, with innovations and investments – but its still massively underfunded. This is highlighted in the comparison between food and agricultures GDP contribution and its share on venture capital funding. Usually, it represents between 15 to 20% of our GDP but in 2019 it only made up 6.7% of global VC funding. Other sectors contribute similar amounts of GDP, but some how collect higher levels of investments. Healthcare for example makes up the same portion of GDP, yet was able to receive 11% of global vc funding last year.With the growing importance and interconnection between food and health during Covid19, the lack of funding is even more the shocking.
Agri-food technology represents an important contribution to the current crisis. During the global financial crisis of 2008 agricultural assets like farmland and private equity performed well. Why? Because people have to eat so farmers have to farm.
Through investing and building more innovative structures we can develop a more robust society and this has always included agri-food technologies.