Agtech, Foodtech: a new Eldorado for investors? · •Impact of Big Ag’s appetite around 2012,...
Transcript of Agtech, Foodtech: a new Eldorado for investors? · •Impact of Big Ag’s appetite around 2012,...
Agtech, Foodtech: a new Eldorado for investors?Unigrains Breakfast Meetings
7 November 2017
Why are investments in Agtech and Foodtech start-ups booming?
A STILL LARGELY UNCHARTED SECTOR / VC PUSH LOGIC: AN OPPORTUNITY TO TRANSFER TECHNOLOGY
PULL Logic: many well-understood challenges
Triggers: acquisitions of remarkable startups
Biotech, healthcare IT
2050
9 bnMiddle classes
Environment, Ethics,Regulation
Consumer expectations
2013
$930m
2012
$425m
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 2
Agtech and Foodtech have in common a strong momentum, but with specific themes and issues
Agtech
Software, sensors, decision tools
Robotics, agricult-ural equipment
Crop inputs (biologicals,
seeds, fertilizers, etc.)
Animal health, nutrition and
genetics
Indoor farming
Ag marketplaces and Fintech
Foodtech
Innovative foods
Food safety & preservation
Digitised industry (3.0
factory & logistics, trace-
ability, POS)
Personalised nutrition, quant-
ified self
Internet of food (food
delivery, etc.)
Innovative packaging
Cross-disciplinary issues
Logistics-traceability, food waste, etc.
Summary
Very large community of investors (> 500) in AgriFoodtech:
• Fewer than 20 specialist investors, who have raised around $1.5bn
• The big US venture capital names have contributed strongly to the recent boom
• Booming of corporate venture, notably in the food industry
Very dynamic investments in 2017, with the “internet of food” continuing to crush all other categories.
• The internet of food segment (mainly food delivery) has received more than $12bn in investments since 2014
• Investments in Agtechs topped $1bn for the first time in 2017, driven by megadeals (indoor farming, plant microbiota)
• In Foodtech, the biggest investments were in startups offering alternatives to animal protein (~ $1bn since 2014)
Value creation models have yet to be defined
• Startups are valued on average twice the capital invested (post money)
• In Agtech, where the “big Ag” play a major role, few strategic acquisitions since 2013. In Food delivery, successful IPO in the past five years
• Value proposition: a wide variety of positions, from breakthrough innovation to redesign of business models and agile growth
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 4
Agrifoodtech investments: the stakeholdersVenture capital is blossoming, but there are few specialised investors
Investment momentumAgtech investments are increasing but are still far from being on the same scale as the Food delivery segment
Focus on three dynamic investment segmentsIndoor farming, biologicals, alternatives to conventional animal protein
What value creation?The long road of Agrifoodtech startups
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 5
Agrifoodtech investments: the stakeholdersVenture capital is blossoming, but there are few specialised investors
Investment momentumAgtech investments are increasing but are still far from being on the same scale as the Food delivery segment
Focus on three dynamic investment segmentsIndoor farming, biologicals, alternatives to conventional animal protein
What value creation?The long road of Agrifoodtech startups
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 6
AgrifoodTechs attract venture capital investors from all backgrounds
FoodTech
AgTech
Cleantech & impact funds
Generalist funds
AgriFoodtech funds
IT funds
Biotech-pharma funds
Consumer funds
> 500 investors
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 7
A small number of specialist investors
The approximately 20 dedicated funds in the world raised around $1.5bn.
Less than 10 specialist investors raised more than $50m, most of them American
Small specialist teams in Israel, Europe, India, and especially the US.
2011 … 2013 2014 2015 2016 2017
$92m
$30m $114m
$125m
$108m
$125m$95m
$180m
€38m
$105m$90m
$30m
* Note: with the exception of Avrio, “precursor” funds created before 2010 (Finistère 2006, Cultivian Sandbox 2008, Aquagrofund 2008) made a significant part of their investments in IB/life science/cleantech.
+ €86m
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 8
Agrifoodtech specialists are struggling to raise funds
Only funds sponsored (Anterra, CapAgro) or supported by a family office (Middleland, S2G) carry out quick fundraisers
• For others, raising funds can be a lengthy process (more than 2 years) and the targets are seldom met (Finistere, Pontifax, BioEnterprise Cap.). Exception: Cultivian Sandbox
• Many small-sized funds (< $50m)
Strategic LPs account for a significant proportion of investments in reference funds
• Cultivian Sandbox
• Finistère
The difficulty of convincing financial investors
• Non-identified asset categories, limited track record, concerns (deal flow, development times, exit opportunities)
• Pontifax is the only specialist fund to have exclusively financial LPs
Specialist funds have limited capacity to position themselves in the biggest deals (US)
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 9
FIRST TAKE-OFF, THE LABEL OF BIG ONES 2017: A SECOND TAKE-OFF?
A segment highly dependent on non-specialist funds
Rationales specific to the United States (Californian ecosystem, mega funds, etc.)
Big Californian VCs
GAFAM et alia
The rise in megafunds that invest directly
A trend that has kicked off, notably in the protein segment
Specialist VCs are concerned by soaring valuations• A pre-IPO logic?
Focus on
2016, 2017
2017
Vision Fund
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 10
IN AGTECH AND FOODTECH INCREASINGLY ACTIVE CVC
The big comeback of corporate venture capital (CVC) funds
CVC investments in AgTech
A tool for corporate M&A strategy
CVC Agtech
CVC Foodtech
Str
on
g g
row
th /
bra
nd
sA
lo
ng
-sta
nd
ing
pra
ctic
eo
f B
ig A
g i
s am
pli
fyin
g
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 11
VC FUNDS ACTIVE IN FRANCEA RICH ECOSYSTEM FOR THE CREATION OF YOUNG STARTUPS
Focus on the Agrifoodtech ecosystem in France
Startups benefit from a complete ecosystem of incubators/accelerators and funds
Agtech ecosystem
Foodtech ecosystem
Clusters, etc.
Funds Sectors Portfolio extract
AgriFoodtech
Nutrition, healthcare
Cleantech
Generalist
Generalist
Ind. Biotech
AgriFoodtech
+ IT funds positioned in the Internet of food
+
Acceleration Incubation
+ Full-line players
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 12
Agrifoodtech investments: the stakeholdersVenture capital is blossoming, but there are few specialised investors
Investment momentumAgtech investments are increasing but are still far from being on the same scale as the Food delivery segment
Focus on three dynamic investment segmentsIndoor farming, biologicals, alternatives to conventional animal protein
What value creation?The long road of Agrifoodtech startups
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 13
Agtech and Foodtech investments: very imprecise barometers
Difficulties inherent in the assessment of private investments, particularly in venture capital
• Amounts not disclosed, low visibility in angel/seed, venture or PE
Inclusion of startups developing cross-disciplinary technology platforms?
Foodtech: the big confusion
• The internet of food (delivery, e-grocery, etc.) is crushing the category
• Food or foodtech? Culinary innovation, “better for you”: innovative?
• The most innovative companies are drowned in a flood of new branded startups and ecommerce
Synthetic biology and microorganism design
Imaging: satellites, drones, image analysis
Ver
y si
gn
ific
ant
amo
un
ts
Midstream tech: 4.0 factory/logistics, data/trace-ability
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 14
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
2012 2013 2014 2015 2016 2017
CB Insight Agtech Pitchbook-Finistere Agtech
AgFunder pre2017 AgFunder post2017
INVESTMENTS IN AGRIFOODTECH ($m) HIGHLY VARIABLE SCOPES
Similar words cover a wide variety of barometers
Take-off of Agtech in 2013-2014
• Impact of Big Ag’s appetite around 2012, notably Climate Corp. deal.
AgFunder: a very broad meaning and the “Internet of Food” effect
• Around 50% of investments in food delivery, e-grocery (reviewed in 2017)
• Impact of platforms deals (biotech, drones, logistics, etc.)
• Very peripheral segments (IB)
CB Insight Agtech (2016): focus on digital agriculture
Finistère-Pitchbook: refocusing on Agtech
• But with platform deal effects (biotech, drones & satellites)
Agtech
Ag&Foodtech
2016 2017
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 15
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2014 2015 2016 2017p
Agtech venture investments ($m)
Indoor farming
Animal nutrition, health and genetics
New inputs for vegetal production(biologicals, seeds, etc.)
Ag marketplaces(est. since 2017)
Digital Ag(software&decision tools,sensors/drones/robotics, etc.)
Moderate investments in light of R&D spending by industry majors
Unigrains estimate: Agtech investments will pass the billion dollar mark in 2017
Source: Unigrains based on AgFunder, Pitchbook, internal sources. Note: cross-disciplinary startups (drones, synthetic biology) with a limited number of Ag applications are excluded
$6-7bnR&D of “big Ags”* in
Crop Science
$1bn
BENCHMARK
* Bayer, Monsanto, Dow, DuPont, Syngenta, BASF
In each segment, the 10 biggest deals account for over two thirds of investments
> 60% category
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 16
In Agtech, as elsewhere, strong momentum driven by mega deals
Digital agriculture is stable at around $300m since 2014 (post Climate Corp.), but agricultural market-places are booming
• “Me too” startups in drones and agricultural software are running out of steam
• Recent boom in agricultural market places (megadeals, Maihuolang in China $150m, Farmers Business Network $40m).
• When will digital agriculture and big data in agriculture deliver on their promises? Patience is running short. Simplification, disintermediation: is that the best digital can offer?
Strong momentum impelled mainly by mega deals in 2016 and 2017:
• Biologicals: massive bets on companies in plant and soil microbiota (Indigo, AgBiome, Inocucor, etc.)
• Indoor farming (excluding cannabis): stable at around $70m per year, the Plenty mega deal ($200m, 2017)
• Animal nutrition: a few companies support the whole sector (Calysta, Agrivida, Protix & Ynsect)
Importance of VC/financial situation(asset arbitrage and megadeals, inflation of investment tickets)
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 17
Foodtech - startups in the “internet of food” and proteins attract more than 90% of venture capital
Internet of food
> $12bn since
2014*
* Based on AgFunder, restaurant marketplaces section (incl. booking/delivery platforms and meal kits + eGrocery, excl. coupon sites, marketing platforms, recipe websites, etc.)
Universeof the “brand”
Alternatives to animal proteins
Top 10: close to $1bn since 2014
Innovative food
Pre- and probiotics
Alt. to sugar
Natural ingredients (colours, flavours, etc.)
All-in-one
Targeted diet
Other
4,9
8,3
6,9
4,4
0
2
4
6
8
10
2014 2015 2016 S1 2017bn
• Explosion of branded food startups meeting societal expectations.
• Culinary innovation & basic processes
• New fruits/vegetables/seeds, fermented food and beverages, “xyz-free”, etc.
• New “venture” funds seeking to get majors acquire brands ($10-20m)
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 18
Foodtech – in the other segments, investments remain moderate
• Several investments of more than $10m in 2016 and 2017
• A new impetus with quantified self and microbiota
• New business models (employers, mutual health insurance companies).
Personalised nutrition
Top 5: more than $100m in 2016-2017
• A fragmented, complex market.
• Significant investments for pathogen diagnosis (B2B) and food scanners (B2C).
• Food preservation: difficult to find a market.
Health security & food preservation
Top 10: approx. $300m since their creation
• Highly cross-disciplinary technology platforms: retailtech, 3.0 logistics (robotisation, last mile, etc.).
• Foodtech: restaurant digitisation, blockchain and traceability.
Digitised sector
Big generalist investments
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 19
What are the key drivers of investments in AgriFoodtech?
The promise of microbiota
• Food delivery: attracted twice more capital than all the other Ag and Food segments combined since 2014.
• Agricultural market places: ramp-up in 2017.
• Extension of digital disintermediation in the agriculture and food sectors.
• Alternatives to animal proteins: the first segment of food innovation, highly diversified (plants, mushrooms/seaweed, cellular agriculture).
• New proteins for animal feed: first segment in farming (insects, synthetic protein).
• Plant health: craze for startups positioned in plant and soil microbiota.
• Human nutrition: next-generation probiotics-prebiotics, personalised nutrition / microbiota diagnosis.
• Animal health: alternatives to antibiotics?
The protein challenge
The new intermediaries
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 20
Agrifoodtech investments: the stakeholdersVenture capital is blossoming, but there are few specialised investors
Investment momentumAgtech investments are increasing but are still far from being on the same scale as the Food delivery segment
Focus on three dynamic investment segmentsIndoor farming, biologicals, alternatives to conventional animal protein
What value creation?The long road of Agrifoodtech startups
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 21
Urban and vertical agriculture – an overview of developments
A huge diversity of formats, with widely varying degrees of technological development (automation, data-informed guidance, etc.)
The most common crops: leafy vegetables/herbs/sprouts, tomatoes, strawberries.
Technology developers at the service of vertical farm designers
Business model
Integration
ExposureCulture medium
Rooftop
Indoors
Ground
Facade
Outdoors Indoors, nat. light
Indoors, LED Indoors, LED
Hydroponics Aeroponics
Aquaponics
Community Sales to Foodservice sector
Retail sales Wholesale
LED data analysiscomputer vision
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 22
Funds raised ($m) Investors (not exhaustive)
226($200m, 2017, B)
130($40m, 2017, D)
83($4m, 2017, late)
70($30m, 2016, C)
> 30
27($22m, 2017, A)
17($10m, 2016, A)
13($9m, 2017, A)
12($7m, 2017, B)
11($12m, 2017, B)
Urban & vertical agriculture – startups among the best funded in Agtech
Henri SeydouxJ-A GranjonThibaud Elzière
Mike Durland
Focus on France
Top 10
> $600m raised
• Involvement of investors from the Middle East
• Plenty: biggest fundraising by an Agtech startup. The story of a disruption?
• Limited visibility on fundraising by Asiancompanies (notably Japanese), which are leaders by past standards.
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 23
Urban & vertical agricultureRisks, opportunities: what are investors betting on?
Local production
• Logistical gains, freshness, locavore movement.
A production freed from the environment
• Degraded lands, climate hazards
Economy of inputs
• Water (>90%), fertilizer efficiency, fewer crop protection products.
Prospect of lower costs
• Progress on LED, infrastructure, data use, shorter crop cycles
The opportunity to grow new varieties
• Organoleptic criteria > agronomic criteria
Production costs
• Capex (up to $30m in some projects)
• Electricity, ventilation, heating consumption
Consumer acceptability
• Natural vs plant factory?
Technical problems to be solved
• Disease management
• Effect of LEDs on product lifecycles
• …
Business model: investment financing
Provided costs continue to decrease (e.g. photovoltaics), vertical farming could revolutionise F&V supplies to cities, over and above a few products with high added value. For the more disruptive models, technological challenges nevertheless remain high. Geographical rationales (Middle East, Asia)?
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 24
Bioinputs - overview of developments
BIOFERTILIZERS*
BIOSTIMULANTS
BIOCONTROL
Microorganisms for N fixation, P&K mobilisation, etc. Biochemicals
- Subst. Semiochemical
- Plant extracts
- Antibodies & other biopeptides, ARNi, etc.
Microorganisms
Microorganisms, algae extracts, etc.: resistance to abiotic stress, stimulation of defences, etc.
Number of technological developments based on bioprospecting plant and soil microbiota (progress made in sequencing)
Many startups have raised large sums by positioning themselves in the gray area of biostimulants, with bacterial consortiums that employ only partially understood action methods
* Excludes organic fertiliser or specialty startups (MidWestern BioAg, Anuvia Plant Nutrients, WisERG), which achieved very substantial fundraising.
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 25
Notable startups
Bioinputs - the promise of plant and soil microbiome
Funds raised ($m) Investors (not exhaustive)
324 ($156m, 2017, D)
> 54 ($35m, 2015, B)
54 ($30m, 2017, C)
46($18m, 2016, D)
39($29m, 2017, B)
32($22m, 2016, B)
31 ($12m, 2016, C)
18($12m, 2017, B)
17($16m, 2016, A)
Focus on France
Top 10
> $600m raised
• An attractive segment enticing very big non-specialist asset managers.
• > 85% of funds for companies based on plant and soil microbiota.
• No European player has raised massive funds for plant microbiota. Some emerging players:
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 26
BiointrantsRisks, opportunities: what are investors betting on?
Review of risks and opportunities
Biopesticide development costs
• $10-20m (reported) vs $250-300m, to be put into perspective
Regulation
• Restriction on agrochemical products?
• Marketing facilitated in some cases (especially in the US).
Technological promises
• Plant & soil microbiota: only the surface has been scratched
• Advances in genomics, HD screening, fermentation techniques, formulation, etc.
Promising segments
• High value-added crops, technological dead-ends in agrochemicals
Products better accepted by consumers?
Technical difficulties
• Product stabilisation
• Little-understood action mechanisms
• More random efficiency
Costs (/ benefits) still high for arable crops
Biopesticide development costs are underestimated
• Cost of experimenting in the field
• Cost of failure
Reputational risk when high-profile, highly-valued startups fail.
A segment driven by a strong need for innovation and by the potential involved in decoding theplant and soil microbiota. But there are many technological challenges and a lag between thevaluation of startups and their immediate ability to offer products at the right price/efficiencyratio. Specialty crops are still the most profitable segment.
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 27
FOCUS ON THE PLANT OPTION FOCUS ON CELLULAR AGRICULTURE
Alternatives to conventional animal proteins
Diversity of raw materials, approaches and products
• Culinary vs technological innovation
High technological challenges
• Need for progress in processes.
• Fractionation, isolate qualities, protein texturing, fermentation of plant matrices, nutritional quality, allergenicity, etc.
Startups’ dilemma: B2B vs B2C
Food production through biotechnology
Startups engaged in all segments
Highly involved playersB2B B2B => B2C
Resolute focus on plants Imitation of animal products
Casein, ovalbumin, gelatin, etc.
Steak, leather
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 28
Funds raised ($m) Investors (not exhaustive)
372($150m, 2017, E)
313($75m, 2017, E)
96(F2017)
53($40m, 2016, B)
51($7m, 2017)
44($30m, 2016, B)
35($18m, 2016)
27($20m, 2017, A)
22($17m, 2017, A)
17($15m, 2016, A)
Alternatives to conventional animal proteins - the best-financed startups in foodtech (e.g. delivery)
Bill Gates
Bill Gates
Bill Gates
David FriedbergAli/Hadi Partovi…
Focus on France
Top 10
> $1bn raised• A huge fad in California
• A handful of key investors
• B2C players in the lead, buoyed by powerful marketing.
• A lot of startups in Europe, but lower fundraising.
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 29
Agrifoodtech investments: the stakeholdersVenture capital is blossoming, but there are few specialised investors
Investment momentumAgtech investments are increasing but are still far from being on the same scale as the Food delivery segment
Focus on three dynamic investment segmentsIndoor farming, biologicals, alternatives to conventional animal protein
What value creation?The long road of Agrifoodtech startups
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 30
FINANCIAL APPROACH: EXPRESSED VALUE
STRATEGIC APPROACH: HOW IS VALUE CREATED?
How much value do Agrifoodtech startups create?
It’s early days yet to tell
What signals should one look out for in the meantime?• Failures
• Startup financing dynamics
• Overview of the first strategic acquisitions (over 75% of exits in venture capital) and IPOs (over 5-15% of exits)
50% value generated after 8 years*
AgriFoodTech takeoff
* Faster Internet & mobile standards
Differentiating scientific or technological innovation
New business models
Being agile in new high-growth markets
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 31
A look back at some emblematic failures
IPO staged too early. Developmenttimes vs stock market times
No market
(Main cause of startup failures – 42%)
Inadequate technology/market (cost/benefit)
Technological failure (agronomic use of agricultural data)
> $80m
> $120m
> $56m
Order
Delivery
Wrong business model: scaling-up problem
Preparation
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 32
Financial approach - how is the capital invested valued?
Agrifoodtech startups are valued on average at twice the capital invested*
A less attractive segment than other venture capital segments (internet, SaaS among others)
• Specialised Agrifoodtech funds face difficulties in raising funds from financial investors.
• Comparable with Cleantechs?
0
100
200
300
400
500
600
0 50 100 150 200 250En
terp
rise
val
ue
(po
st m
on
ey, $
m)
Capital invested ($m)
Valuation on capital invested in AgriFoodtech
3:12:1 Return on capital invested,
global, all VC sectors
Source: Unigrains based on EY figures
Source: Unigrains according to Venture Pulse
* This ratio gives no indication of the final financial performance of investments, which depends on the exits alone.
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 33
ACQUISITIONS OF AGRIFOODTECH STARTUPS SINCE 2012
ACQUISITIONS PICKED UP IN 2017
Financial approach – overview of the main acquisitions of Agrifoodtech startups
From 2012 to 2017: a long dry period
• Granular and Blue River T. (2017): two very welcome exits for Agrifoodtech.
Three segments: digital agriculture, biocontrol, internet of food
• But no acquisitions by majors in the internet of food.
The most remarkable exits are made by a handful of giants
• Looking for technology platforms.
• Spend amounts that raise questions and fumble following the acquisition.
• A fragile model for VC funds.
Original acquisition rationales: Farmer's Edge
Target Buyer Date (age)Value ($m)
2012 (6) 932
2012 (17) 425
2017 (6) 305
2017 (8) 300
2012 (19) 250
2017 (5) 200
2015 (7) 134
2016 (11) 120-150
2012 (9) > 100
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 34
Financial approach – IPO: a difficult path, used mainly by Food delivery startups
Several IPOs in Food delivery since 2014
• Successful experiences: good IPO valuations, strong trajectories.
• The failure of Blue Apron (IPO lower thanlast private round, drop in share price) set off alarm bells.
IPOs are still a difficult path, little used by Agtechs
• Cost, transparency requirements, fluctuations, etc.
• Difficult paths for recent Agtech IPOs: Marrone Bio, Arcadia.
Alternative to IPO: increasingly huge amounts of last-stage venture funding
• Capital available. But when will profitability kick in?
• Candidates for IPO: Indigo, Plenty?
• From the last private round to the IPO: is this still a lucrative positioning?
0,0
0,5
1,0
1,5
2,0
2,5
3,0
aoû
t-13
no
v.-1
3
févr
.-14
mai
-14
aoû
t-14
no
v.-1
4
févr
.-15
mai
-15
aoû
t-15
no
v.-1
5
févr
.-16
mai
-16
aoû
t-16
no
v.-1
6
févr
.-17
mai
-17
aoû
t-17
IPO Agritech notable players – market prices*
Marrone Bio Arcadia Biociences Calyxt
0,0
0,5
1,0
1,5
2,0
2,5
3,0
aoû
t-13
no
v.-1
3
févr
.-14
mai
-14
aoû
t-14
no
v.-1
4
févr
.-15
mai
-15
aoû
t-15
no
v.-1
5
févr
.-16
mai
-16
aoû
t-16
no
v.-1
6
févr
.-17
mai
-17
aoû
t-17
IPO Food delivery notable players - market prices*
JustEat Grubhub Takeaway Blue Apron Delivery Hero
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 35
Strategic approach: startups create value on the basis of three major rationales:
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 36
Transferring S&T* innovations that
make a difference
Implementing new business models
Being agile in new high-growth
markets
* Scientific and technological
Agricultural software
Plant protein
Clean label ingredients
Vertical farming
Human, animal, plant microbiota
Pathogen detection
Agricultural robotics
Cellular agriculture
Vertical farming
Food delivery
Agricultural marketplaces
Agtech insurance
... with very different implications for existing players: Anticipate - Co-develop - Test - Be inspired - Reposition the company, etc.
AgriFoodtech: a new Eldorado?
A wave of investments driven by sensitive agricultural and food issues and the promise of new technologies.
A long-term perspective: Agrifoodtech companies take time to develop...
• Digital agronomy, robotics, plant-animal-human microbiota, pathogen detection: big scientific and technological challenges
• Need for adequate, reasonable funding and experienced entrepreneurs
... and adoption strategies are just as important as technology
• By farmers: incentive and risk-sharing in a low price environment?
• By consumers: acceptability (genetically edited crops, plant factories)? Motivation (personalised nutrition)?
Agile development, original solutions:
• Targeted markets: better to aim straight than to aim big
• Adoption: do insurance and mutual health insurance companies act as a lever?
Unigrains Breakfast Meetings - Agtech, Foodtech: a new Eldorado for investors? 37