The Evolution of AgriFoodTech
In a recent reflection on the past decade of agricultural and food technology, Louisa Burwood-Taylor, the managing editor and head of news & research for AgFunder and AgFunderNews, shared an intriguing backstory on the origin of the term “AgriFoodTech.” This term, now widely used to describe the intersection of agriculture and food technologies, was coined by Burwood-Taylor in 2017 during a trip to San Joaquin Valley with Rob Trice of The Mixing Bowl and Better Food Ventures.
AgriFoodTech emerged as a linguistic solution to a growing problem in the venture capital sector: the need to amalgamate agtech and foodtech into a single category. Historically, these two sectors were distinct. Agtech, which can trace its roots back to the invention of the tractor and was later exemplified by the rise of genetically modified crops, initially captured venture capital interest with soil sensors and farm management software. Foodtech followed, spurred by the burgeoning food delivery services and the advent of alternative meat and dairy startups.
The inclusion of food delivery technologies in AgFunder’s annual AgTech Investing report stirred controversy for inflating investment figures, as evidenced by the $1.65 billion funneled into food delivery startups in 2015. Despite the criticism, AgFunder maintained that any technology transforming how we grow, transport, and consume food was integral to the agtech investment landscape.
Burwood-Taylor’s casual conversation with Trice sparked the creation of a term that encapsulated the full spectrum of the food value chain. The goal was to capture the essence of an industry that was rapidly evolving beyond its traditional boundaries. As consumer preferences began to exert more influence on farming practices and digital technologies shortened supply chains into “supply webs,” as Danielle Gould of Food+Tech Connect would say, the line between agtech and foodtech blurred.
The new term also reflected a shift in investment strategies. With consumer-facing foodtech companies beginning to offer returns, and the need for farm tech entrepreneurs to have a longer time horizon for exits, venture capitalists recognized the benefit of a diversified portfolio. This portfolio would span across the supply web and various technology types, balancing investments between immediate and long-term returns.
Since the introduction of AgriFoodTech, AgFunder has expanded its investment reach, supporting a range of startups from eGrocers and restaurant robotics to soil analysis and farm robotics. Burwood-Taylor, who joined AgFunder in 2015 after serving as the founding editor of Agri Investor, acknowledged the complexity of the agri-food industry. She noted that the interconnectedness of food and agriculture was a revelation to her, especially considering her background in structured bonds and medium-term notes.
Today, the term AgriFoodTech is not only a testament to the industry’s complexity but also its integration with other sectors like healthcare and its pivotal role in addressing climate change. With climate tech investments becoming increasingly vital for the industry’s survival, Burwood-Taylor hinted at the possibility of a new term that could encapsulate the sector’s evolution over the next decade.
For those interested in delving deeper into the journey and transformation of AgriFoodTech, AgFunderNews has released a special 83-page report that offers a comprehensive look at the last ten years in the sector. As the industry continues to evolve, the search for a term that captures its breadth and impact remains open, with Burwood-Taylor inviting suggestions for a catchier phrase than AgriFoodTech.