Agrifood startups raised $3bn in climate tech investment in 2022
Climate tech investment landed in the spotlight in 2022.
While other sectors (e.g., eGrocery, food delivery) saw valuations nosedive and VC dollars dwindle, climate tech investment “hovered at historic highs,” according to PWC’s State of Climate Tech 2022 report.
In agrifood, climate tech startups raised $3 billion in VC deals, according to AgFunder data. [Disclosure: AFN’s parent company is AgFunder.]
Climate tech is a rather broad category, but typically it encompasses startups working to decarbonize the global economy. This includes many categories in agtech, from ag biotech and alternative protein to novel farming systems and like vertical farms.
Agriculture’s role in climate tech is critical, seeing as the sector produces 19–29% of total greenhouse gas (GHG) emissions. However, as McKinsey recently noted, reversing the damage from climate change will take commitment from all players in the agrifood value chain, including downstream, customer-facing sectors.
Top climate tech deals in agrifood in 2022 were almost exclusively upstream startups — those closer to the farm or lab. However, as the sector matures, VC activity may yet float downstream.
Top 10 climate tech deals for agrifoodtech