© Digital Bridge 2021 1

THE TRENDS AGRIFOOD 2021 REPORT # AGRIFOODTRENDS2021

We present in this report the trends in the agri-food chain for 2021 around the world, especially in regional ecosystems . Challenges that will coexist with the SARS-COVID- 19 pandemic, its variants and its end, because we also know that science will put the end to this global crisis. The food industry faces a variety of challenges that need to be addressed and the trends that will follow from them, and this report addresses the most important one by one. This report has very diverse sources of information and they are listed at the end of it .

I.- INVESTMENT IN GROWTH The most important action to implement in the agri-food chain is to increase agricultural productivity and guarantee a climate-resistant agricultural system. More entrepreneurs and tech savvy have joined the agriculture movement in recent years, as the traditional approach to the food industry is undergoing a fundamental transformation. Investors are also showing increased interest in the food industry , innovation and the startups . The amount of money invested in agri-food technology has more than six- fold since 2012 - from $ 3 billion to nearly $ 18 billion, according to AgFunder .

II.- THE CHANGING CHALLENGES OF THE AGRI-FOOD INDUSTRY The food industry faces a variety of challenges that need to be addressed:

1.- Sociodemographic changes . The world population is expected to grow to 9.7 billion in 2050. This growth will result in increased demand for resources and raw materials, including food . In particular, it is estimated that the demand for food will increase by 56% in 2050 compared to 2013 . In addition, in 2050, it is expected that around 68% of the population live in cities. Urbanization also affects food consumption patterns: higher urban incomes are reflected in higher demand for processed foods and meat , one of the most impactful industries in the world.

2.- Shortage of natural resources . Furthermore, the growing world population represents a threat to the availability of natural resources; in fact, projections for 2050 indicate the emergence of a growing scarcity of natural resources. In this sense, agriculture plays a fundamental role because, to satisfy the aggregate demand for food, more and more resources will be exploited, causing land degradation, deforestation and water scarcity.

The expansion of agricultural land remains the main driver of deforestation , with up to 226 626.4 square meters of land that are cleaned daily. Therefore, competition for

natural resources will intensify unless more efficient agricultural systems are implemented. To this extent, livestock must also be restructured to reduce the impact on the environment and consumption of resources.

3.- Climate change . The scarcity of resources is not only due to a growing population; Climate change also has a great impact. According to the FAO, between 2005 and 2015, natural disasters such as prolonged periods of drought and floods cost the agricultural sector $ 96 billion in damaged or lost crops and livestock production. Furthermore, climate change will affect all aspects of food production and will lead to a decrease in crop yields of 10/25% by 2050 . Due to climate change, the oceans face an increase in temperature that will eventually reduce marine fish catches by 40%. Without efforts to adapt to hazards related to climate change, food insecurity is likely to increase substantially, particularly in the least developed countries.

• Population increase (10,000 mill 2050) Sociodemographics Changes • Migrations to urban centers / Rural depopulation

• Deforestation for

Scarcity of natural agricultural areas resources • Water is increasingly scarce

• Crop yield decrease Floods and droughts (18% ) (96,000 millones $ loss) • Marine fish reduction (40%)

Fig. 1 The agri-food tensions that act on the land

III.- IMMEDIATE CHALLENGES FOR THE AGRI-FOOD INDUSTRY

Due to the increasing demand that agriculture will face in the near future, the most important challenge to address is to improve agricultural productivity in a sustainable way . In addition, people increasingly move from the countryside to the cities or around the cities. This will suggest an increase in your income and therefore changes in eating habits. Meat products will be in higher demand, further jeopardizing agricultural capacity to meet growing food needs. Livestock requires an incredible amount of natural resources: from land and consumed water to food for animal feed. Consequently, there will be a shift towards the consumption of alternative proteins , as has already happened with Beyond Meat .

Fig. 2 Forecast of the world meat market.

To improve agricultural productivity, it is necessary to increase efficiency in the use of natural resources , expand production with the same amount of inputs and reduce food waste and loss . In this sense, each year approximately 1,300 million tons of food are wasted . The following image shows that in developed countries, mainly food waste consumption level, while in the least developed countries and developing countries , food waste during the stages of harvest and pos t harvest . This issue is crucial: when food is wasted, so is the water, soil and natural resources used to produce it . In terms of electricity consumption, for example, food accounts for 30% of total energy use . and 1/3 of that fraction is wasted annually.

In addition, it will be inevitable to tackle climate change and the intensification of natural hazards through the implementation of adaptation measures. In reality, climate change is affecting all aspects of food production and crop yields are expected to decline

. Without efforts to adapt to climate change through agricultural innovation, food insecurity is likely to increase substantially.

Fig. 3 Distribution of food losses along the supply chain.

IV.- INVESTMENTS AND TECHNOLOGIES FOR THE AGRI-FOOD MARKET

Although agricultural investments have increased, the level reached is still insufficient to abolish poverty and hunger in 2030, according to the SDGs (Sustainable Development Goals). If we consider achieving those goals as a proxy to prevent this scenario, it will require additional investments of $ 5-7 trillion . these figures with the arrival of the cr i economic sis of the pandemic and postpandemia will be more complicated to perform . Not however the objectives linked to the fight against change climate and traceability and food safety will attract greater public and private investment especially in Europe and the United States. To efficiently and effectively tackle all of these challenges, other pressing issues need to be addressed : 1) Eradicate extreme poverty, 2) R educe inequality, 3) To end all forms of malnutrition and 4) H acer food and more efficient systems are, inclusive resilient

These are just four of the SDGs that will be key challenges in building a better world. Increasing the profitability and productivity of agriculture will be an engine to reduce inequalities and reduce malnutrition.

Emerging technologies in the agri-food sector

The need for technological development in Agrifood to achieve a more sustainable and productive agriculture has become more urgent. A growing number of entrepreneurs and tech experts have joined agritech in recent years, as the traditional approach to the food industry needs to undergo a fundamental transformation. Root AI , for example, is a research firm based in EE. UU. Q ue is developing artificial intelligence and robotics to strengthen the agriculture indoor , an emerging trend in 2021 . Another interesting example is the Israel-based startup Taranis , which has developed a scientific engine that analyzes field data related to the crop production cycle and climate and indicates the perfect time and places to implement agrochemicals. In the last 40 years, cereal production increased more than 300% due to modern agricultural practices. Still, efficiency gains are now falling and agriculture must face the challenges of future years. New technologies must be implemented not only for the sake of innovation, but also to improve and address the real needs of consumers and redesign supply chains. Agriculture will no longer have to depend on the application of water, fertilizers and pesticides. Farmers will use trace amounts, or even remove them from the supply chain, exploiting, for example, seawater . This will have an overall positive impact on the environment, both in terms of GHG emissions and exploitation of resources. The startups agricultural technology have grown to meet these needs and challenges, and investors are showing greater interest in agribusiness. The amount of money that is invested in Agrifood technology has multiplied by more than six since 2012, reaching in 2020 about 20,000 million Dollars (about 1,643 million €) as shown below:

Fig. 4 Growth in financing of agri-food technologies.

In particular, according to a report by AgFunder , European agricultural startups attracted investments of approximately $ 1.6 billion in 2018 , of which $ 900 million for startups operating from agriculture to food processing, a whopping increase from 200 % compared to the previous year. In the US, agricultural startups took $ 8 billion in venture capital in 2018 , almost half of total investments worldwide. Most of the deals were located in California, which accounted for $ 5 billion, representing 63% of total US investments, followed by Massachusetts with $ 799 million and New York with $ 539 million. Who leads ag ri tech in the world ? Most of these investors are based in the US. They made up more than half of all businesses financed in 2019. They received 66% of all agtech venture capital in 2019 and those numbers will likely be similar in the year 2020 . Companies Agtech European capital doubled received. Europe continued its growth trend in all agri-food industries, with venture capital, registering an increase of 94% in the financing of agri-food technology . The Increase in Latin America by 40% , with an Increase of the double in Africa , And with a tendency to Decrease of 54% in the United States and China . Europe has gained considerable ground in recent years, with an aggregate investment ag ri tech in 2019 comprising 4 20 . 5 million of € to bring the total raised throughout the region to 982 , 4 million. Although comfortably behind the US. UU., Investment ag ri tech European came to represent about half of the remaining total investment activity in the world over the past decade.

Agri-food technology trends can be divided into Upstream , related to agriculture and food processing, and Downstream , related to food delivery and consumption. Upstream technology trends are those that face the main agricultural challenges of the coming years, and include new agricultural systems, precision agriculture, alternative proteins, agricultural biotechnology, among others:

Fig. 5.- Agri-food technology trends. Upstream technologies received investments of $ 6.9 billion in 2018, with a year-on-year growth of 44%, the most relevant being agricultural biotechnology, which attracted an investment of $ 1.5 billion in 2018, followed by agriculture from precision with $ 1.4 billion and midstream with $ 1.3 billion.

Fig. 6.- Growth of upstream financing . Upstream technologies are improving agriculture in a way that can increase productivity and efficiency, while also developing adaptation measures to climate change. Following this path, it would provide a shocking response to the growing population trend and the growing demand for food, addressing the problem of resource scarcity. In this sense, four technological areas, in particular, can be considered more relevant: 1) Agricultural biotecnología, 2) Vertical agriculture, 3) Precision Farming 4) Alternative proteínas .

1) Agricultural biotechnology relies on new approaches to genome editing (such as CRISPR ), which allows for greater selectivity and reduces the element of chance. These techniques can not only create breeds with high resistance to harsh conditions, but can also be used to propagate them with vitamins and nutrients. One of the leaders in agricultural biotechnologies is Indigo Ag , a US-based startup founded in 2016 that supports growers in the transition to regenerative agricultural practices through year-round partnerships, microbiome treatments, and support to optimize regenerative systems. It has raised a total of $ 809 million in funding. 2) Vertical farming is the process of growing food in vertically stacked layers, working in environments where arable land is not available. Therefore, it is an easy answer to provide high quality food without occupying other lands. Combined with urban agriculture, it adopts soil, hydroponic or aeroponic cultivation methods that provide the opportunity to grow, for example, vegetables in the city center using 95% less water, fertilizers and soil . An interesting reality employing vertical farming is Bowery Farming Inc , a US-based startup founded in 2014, which, within its internal technology platform, combines sensors, control systems, computer vision, robotics, and machine learning. to optimize many of the processes around. the farm. The company has raised 172.5 million dollars. 3) Precision farming encompasses everything that makes the practice of farming more precise and controlled when it comes to growing and raising livestock. A key driver of this practice is the use of information technology and a wide range of elements, such as GPS guidance, control system, sensors, robotics, drones, autonomous vehicles, automated hardware and software. A promising reality in precision agriculture is represented by CropX , an Israel-based startup founded in 2015, which has developed a rechargeable wireless sensor solution for soil

moisture monitoring. It has raised $ 22.9 million to streamline and automate farm management. 4) The new business alternatives for sustainable proteins are reinventing the industry with new food technology, enabling the production of meat - based and cells that closely resemble traditional meat flavor and texture without increasing the final price. The use of these technologies allows a considerable reduction in terms of inputs used, increasing efficiency in the food chain. Impossible Foods is one of the most mature plant-based meat startups . Founded in 2011, this US- based company designs vegan burgers that resemble traditional meat in texture and flavor. It has raised a total of $ 687.5 million.

All these technologies guarantee a smarter use of resources, as well as a reduced amount of resources, thus increasing the productivity and sustainability of agricultural processes.

On the other hand, Downstream includes technology for restaurants and retail stores, restaurant markets, eGrocery, and technology for home and kitchen. Settlements increased to $ 10 billion in 201 9 , a growth of 41.8% compared to 201 8 . These solutions have more to do with reshaping the way we select and consume food and less to do with tackling major agri-food challenges, even if some solutions can help decrease food loss.

John Deere , a company best known for making tractors, is getting into the artificial intelligence business. In 2017, John Deere Labs bought Blue River Technology for $ 305 million, a startup with computer vision and machine learning technology that can identify each individual plant on a farm. This means that herbicide resistant weeds can be easily distinguished from healthy plants. The net result? Farmers can reduce chemical use by about 95% while improving yields, according to Blue River .

As environmental, social and demographic factors put increasing pressure on traditional agri-food production technology, investors and entrepreneurs alike are turning to innovation.

Having set the stage in Feeding the Future : An Overview of the Agri-Food Industry , we will now go into more detail on the innovative technologies that are revolutionizing the food production business. Detailed promising new technologies in the field as well as startups interesting to put them into operation as vertical farming , alternative protein

, precision agriculture , agricultural biotechnology and other interesting future trends . Vertical farming for controllable and sustainable production Vertical farming is the practice of growing crops in vertically stacked layers. This is possible through the use of grow racks suspended from a wall or fence and the implementation of hydroponic techniques to nurture the plants.

This technique has great potential, since it ensures the control of many production variables. Not only does it reduce the amount of inputs consumed, but it also enables the control of crop pathogens and parasitic insects. This allows for significantly shorter growing cycles and year-round production , providing the ability to: • Reduce the use of land for agriculture

• Respond effectively to urbanization trends, moving crops within the city.

• Reduce the need to truck food hundreds of kilometers to market

• Maintain production regardless of season or weather

• Prevention of the eventuality of hazards related to climate change This, combined with the significant savings in terms of water and supplies, will be a key factor for success in facing the growing demand for food and the success of the agri- food industry.

However, expanding vertical farming could cause difficulties, mainly due to the high energy use required by this technique, which inevitably has an impact on your carbon footprint. Vertical farmers are keen to use renewable energy to power their operations, but the industry still has a long way to go. Most vertical farms have failed because the high costs of robotic equipment and artificial light have been lost to the simpler technology of soil, greenhouses and the sun. But the concept is now attracting a surge in corporate investment, illustrated by companies like Spread or Plenty , an American startup backed by $ 200 million from investors, including SoftBank's Masayoshi Son and Amazon's Jeff Bezos. According to MarketsandMarkets , this subsection of the agri-food market is growing at a CAGR of 24.8% , and is expected to reach $ 5.8 billion in 2022.

Hydroponics and aeroponics are the two main technologies applied in this field. The implementation of one of the two implies important savings of resources and a good balance between the use of water and the necessary fertilizers / nutrients.

Climate control devices will be the fastest growing hardware segment in this market, and will play a crucial role in increasing performance. To ensure a protected growing environment, several factors that influence climate need to be controlled at an advanced level. Is expected to vertically agricultural market in Asia-Pacific has the largest share for 2022 compared with the other regions.

Fig. 7.- Vertical agricultural market by region (millions of dollars)

There are numerous farms in Japan, Singapore, Taiwan, and other technologically advanced countries that are already driving the market in the region. Investments grew significantly from $ 60 million in 2015 and 2016 to $ 414 million in 2017 and 2018 . The CapEx is high for these companies. A small-scale, low-tech vertical farming business may require around € 2 3 0,000 to start and up to € 12.5 million for a second generation plant. The most innovative plants include data management, automation of plant management, automation and automation harvest pos t- harvest . On average, this type of plant produces 55 times more products per unit than traditional farms. Furthermore, innovation should reduce operating expenses: for example, increasing the efficiency of the LED lights used in this technique.

The main players in this market are AeroFarms , a US-based firm that has been in business for 15 years and has raised $ 238 million, and Plenty (United States), which has raised $ 226 million.

For the European environment, Infarm (Germany) is a Berlin-based company that has already raised approximately $ 122 million, Agricool (France) has raised $ 36 million and is mainly focused on strawberry production, Agrilution (Germany) has raised $ 4.6 million, and Sfera Agricola (Italy) has raised $ 7.5 million and has revenues of $ 4.23 million. Increased use of alternative proteins Researchers and startups are putting their efforts into alternative proteins, as feeding the growing population beef from cattle is likely to become quite difficult due to continued growth in demand for meat. As a result, the 46% of the total agricultural products currently only used to feed livestock. Solutions to increase the efficiency of conventional meat production are almost exhausted, and pursuing them will not overcome global agricultural and food challenges.

Therefore, new meat products and market players are evolving . Instead of improving conventional meat production, several companies are focusing on inventing new products to replace conventional meat . Some of the most promising areas are insect- based meat, new vegan meat substitutes, and cultured meat.

Insect-based meat is made from protein sourced primarily from crickets and mealworms. This trend has some advantages, such as superior energy and protein conversion compared to traditional meat. Insect foods have a greater potential to feed livestock rather than humans due to their differences in taste and texture compared to traditional meat and the negative perception of insects as food by consumers in the vast majority of countries Westerners. Fig. 8 .- Forecast of the world meat market

The two most interesting trends could be the novel replacement of vegan meat and cultured meat. The former requires no animal ingredients, and its sensory profile is

much closer to meat than the traditional vegan / vegetarian replacement. The main reason for this is a sophisticated production process that uses hemoglobin and binders extracted by fermentation from plants. Startups in this field (for example, Impossible Foods , JUST , Beyond Meat ) raised more than $ 900 million in financing through 2018, and the products are now available in both supermarkets and restaurants.

Cultured meat represents an alternative to meat that is created through exponential cell growth in bioreactors. Meat farming will represent the greatest opportunity even though it is in a poor state of development due to the significant cost associated with it.

The process begins when a cell is removed from a living animal and grown in a laboratory to permanently establish a culture (called a cell line). Cells can come from a variety of sources: biopsies of live animals, chunks of fresh meat, or cell banks. Cell lines can be based on primary cells or stem cells . Once a good cell line has been selected, a sample is introduced into a bioreactor where cells proliferate exponentially and can be harvested. The result is a meat that is almost indistinguishable from animal meat. Commercial products are not yet being sold , even if this technique has the potential to disrupt the multi-billion dollar global meat industry. The most potentially disruptive trends could be the new vegan and cultured meats, which will reach, respectively, 25% and 35% of the global market value in 2040 thanks to their high commercial potential motivated by their great similarity to real meat. This makes them attractive to venture capitalists. In particular, cultured meat will win in the long run, but new vegan meat substitutes will be essential in the transition phase.

The most advanced and innovative vegan meat replacement companies are based in the US Beyond Meat and Impossible Foods are among the most famous and have already raised several hundred million dollars . Some invested by OurCrowd .

Impossible Foods raised $ 300 million in Series E in 2019, bringing the total equity value to $ 700 million. Investors include such prominent names as Bill Gates, GV (formerly Google Ventures ), UBS, and Sailing Capital. Beyond Meat has already been made public.

Vegan meat replacement companies

Foundation Name Income and financing year

$ 50-100 million estimated revenue, raised $ 122 million to Beyond the meat (US) date 2009

$ 50-100 million estimated revenue, raised $ 688 million to Impossible Foods (US) date 2011

Acquired for> $ 25 million by Ojah (Holland) Kerry Group in 2018 2009

Moving Mountains Foods ( United Kingdom ) ~ $ 19 million in revenue 2016

The Meatless Farm Co. ( United Kingdom ) N / A 2016

Food for tomorrow - Heura (Spain) N / A 2017

Source: Crunchbase . These companies are closer to marketing their products. The plant-based food and beverage alternatives market is expected to reach $ 80.43 billion by 2024, growing at a CAGR of 13.82% over the forecast period from 2019 to 2024. The largest cultured meat companies are in the US San Francisco-based Memphis Meats raised $ 161 million to build a cell-based meat pilot plant. This round of investment increases the total funds of the California cell-based meat company more than eight times. Investors include Tyson Food , Richard Branson and Bill Gates.

Investors have invested more than $ 16 billion in U.S. plant and cell-based meat companies. In the past 10 years, $ 13 billion in 2017 and 2018 alone, according to two reports released by The Good Food Institute in 2019 .

Cultured meat companies

Foundation Name Income and financing year

<$ 1 million estimated revenue, raised Memphis (US) steaks $ 181 million to date 2015

Future meat technologies (Israel) Raised $ 14 million Series A 2018

<$ 1 million estimated revenue raised Mosa Meat (Netherlands) ~ $ 8 million Series A 2013

Precision agriculture on the move Over the past two decades, precision agriculture has transitioned from an academic research topic to a highly beneficial practice in the field of agriculture. To end signal 2030, the precision agriculture is poised to become one of the most influential trends in agriculture. Fig. 9.- Precision agriculture market: growth rate by region (2021-2024)

Precision agriculture is an agricultural management concept based on the observation, measurement and response to variability between fields and intrafield in

crops with the aim of defining a decision support system (DSS) to optimize input yields and at the same time preserving resources.

Investments in precision agriculture reached $ 661 million in 96 deals in 2015, an increase of 140% compared to 2014, according to AgFunder . However, precision agriculture saw a decrease of $ 405 million in 2016, mainly due to lower spending on drones. It is possible to identify three main directions of precision agriculture that will guide the future of this sector: 1) images and sensors , 2) robotics and automation , 3) digitization and big data . 1) The images and sensors refer to the practices of monitoring performance in the field, soil monitoring and computer in the field or real-time operation through the use of satellite images, drones and sensors of growing conditions, with the goal of providing a system that helps monitor and automate entries. 2) Robotics and automation refer to technologies such as computer vision, aerial sensing, and artificial intelligence. 3) Digitization and big data employ field maps, augmented reality, and open data platforms to achieve advanced analytics and intelligent machine design towards business intelligence services. It is expected that the market will grow at a CAGR of 12.8% to reach the 4.535 million of € in 2021 . Currently, the EMEA area dominates the market (41%), followed by APAC (32%) and America (27%). Bayer has built a team of more than 400 professionals and invested $ 1.25 billion to drive the development of digital offerings for farmers , and presented its platform last year at our SmartagrifoodSummit.com event . Precision agriculture is a crowded field due to its high potential. Feeding the world and making a profit while doing it is great motivation for many different players. Companies like John Deere , CNH, Kubota , Bosch, Trimble, and Topcon are also focusing on this field, as well as a host of startups , including:

Precision agriculture companies

Income and Foundation Name financing year Description

Analysis engine that Estimated analyzes field data revenue of $ 1- related to the crop 10 million, production cycle and raised $ 30 climate and provides Taranis (Israel) million to date 2014 suggestions

Ecorobotix Raised $ 10.6 Weeding robots for (Switzerland) million Series A 2011 sustainable agriculture

Blue River Technology Raised $ 30 View and spray crop (USA) million to date 2011 protection

Rechargeable wireless Raised $ 23 sensor solution for soil CropX (Israel) million to date 2013 moisture monitoring

Data-driven solutions based on machine SeeTree Raised $ 15 learning for orchard (Israel) million to date 2017 producers

<$ 1 million estimated revenue, raised Fixed Wing Aircraft Ceres Imaging $ 35.5 million Sensors Capturing Crop (United States) to date 2014 Data

Agricultural biotechnology is transforming the agricultural business Another fast-growing niche that employs a significant number of technological innovations is that of Agricultural Biotechnology , which includes all the biological or chemical tools and processes used in the exploitation and also in the postgranite processes . This category includes different types of technology and science, including genetics , breeding , microbiome research , synthetic chemistry, and animal health .

Genetics involves processes that allow the transfer of useful characteristics from one plant to another by direct manipulation of the genetic material of an organism. Breeding is the science of changing plant traits to produce desired characteristics. Microbiome research is about generating valuable insights into the biology of microbial communities and their impact on their environment and their hosts. Synthetic chemistry is an emerging area of research aimed at creating new biological parts, devices, and systems, or redesigning systems already found in nature. Animal health encompasses technologies that improve the quality of animal feed, animal performance and / or animal health, as well as technologies that create new animal feeds that serve as a primary or secondary food source. The global agricultural biotechnology market is expected to be 27 billion by 2024 , growing at a CAGR of 10.9% (2019-2024). North America is the largest agricultural biotechnology market due to the greater acceptance of GMOs. The market for genetic engineering is one of rapid growth and can have positive impacts on the environment: GM crops demand less chemicals, land and machinery, which helps reduce environmental pollution and GHG emissions. Furthermore, the focus of this science is primarily to create new seeds and plants capable of resisting herbicides, insects, and viruses while growing, tolerant to environmental stress (eg, drought, floods), and with additional nutritional benefits and better taste.

There are also some downsides to genetic engineering. Generally, pathogens are able to adapt to new genetic profiles, therefore there may be unexpected negative side effects (for example, drought-resistant plants may be less tolerant of direct sunlight).

In addition, the use of copyrights and patents to protect Intellectual Property Rights (IPR) is a great advantage in this field, characterized by a low cost of imitation.

Some of the startups and SMEs active in agricultural biotechnology are :

Agricultural biotechnology companies

Income and Foundation Name financing year Description

Plant productivity for modern agricultural systems using genetics Kaiima Bio- Raised $ 133 and breeding Agritech (Israel) million to date 2006 technology

IDA ( Intelligent Dairy Farmers Assistant ), a Estimated service powered by revenue of $ 1- artificial intelligence 10 million, that uses data collected Connecterra raised $ 9.5 from cows to detect (Netherlands) million to date 2014 health problems

Estimated Targeted crop revenue of $ 1- protection technology 10 million, that increases the Terramera raised $ 83 efficacy of organic (Canada) million to date 2009 ingredients

$ 125 million New crops and modify investment existing ones using gene Plants in pairs from editing technology like (US) Monsanto 2017 CRISPR

Estimated Computational biology revenue of $ 1- to generate crops with 10 million, improved Equinom raised $ 18 characteristics without (Israel) million to date 2012 genetic manipulation

AgroSavfe Flame Antibody (Belgium) N / A 2013 Biopesticides

Additional interesting trends for the future Historically, agriculture has undergone a series of revolutions that have brought efficiency, performance and profitability to previously unimaginable levels. Market forecasts for the next decade suggest a digital revolution that will likely affect all aspects of the agricultural food chain. From a climate perspective, there is a growing need to figure out how to produce as much food as possible with the same amount of farmland (if not less). However, as previously discussed, climate change is not the only factor threatening the food business in the coming years; There will also be a growing demand for technological solutions applied to agriculture . Previously, we discussed the future importance of cultured meat, CRISPR and genome editing, precision farming, and vertical farming. But these are not the only available technologies that researchers are studying. It is exploring one wide range of solutions to address both the challenges related to food - related climate change as expanding demand for food. Some examples include: • Use compounds prevent that fertilizers become microbes in soil nitrous oxide , a gas very powerful greenhouse. • Develop crop varieties that absorb more nitrogen . • Reduce the carbon footprint of livestock by feeding them differently, for example using algae. • Adoption of desert agriculture and seawater cultivation . Due to the increasing lack of resources, the world must turn the desert and the sea into food production facilities. For example, in Spain, the Chef del Mar, Angel León, has discovered a new cereal that is grown wild in the sea. • Application of 3D printing to food production . Experts believe that printers using hydrocolloids could be used to replace basic food ingredients with renewable energy such as algae, duckweed and grass. Now some scientists are experimenting with algae as a replacement for animal protein. Unfortunately, many of these agri-food technologies are not yet receiving the amount of investment they require for their effective implementation; However, this field is generating awareness very quickly and , in consequence , the investments are growing. It will be a trend in 2021.

V.- THE 8 MAIN INVESTMENT TRENDS IN AGRIFOOD 2021 :

Ag tech companies are likely to face a turbulent outlook for 2021. With agricultural margins already under pressure ahead of the pandemic, the availability, cost and health of the workforce, trade conflicts and pressure from Consumers and voters to achieve improvements in sustainability pose significant obstacles. The consequence of venture investing is likely to be that startups in this space are under a dual imperative: demonstrate return on investment to farmers and their agronomists that is essential and will help generate better returns on the farm, by while demonstrating that they can scale. to profitability. We expect the consolidation in the industry to continue to negatively impact investment and exits in the short term.

The total investment in Innovation in Agrifood 2020 has been 14,400 million, 45% more than in 2019. Investment has especially skyrocketed since the onset of the pandemic. Fig. 10.- Agritech & Foodtech investment trends in 2021

The forecasts of the trend in Agrifood in 2021 according to our data after balancing various sources in the world (EU, United States, Middle East, Latin America and Southeast Asia ) indicate that the market will have turbulence due to the influence of the evolution of the markets, the recovery of travel and leisure, which will imply important peaks related to the efficacy of vaccines and their spread. Will be major peaks throughout the year 2021 and start recovering strongly from the first half last of 2021, especially since August 2021. Tandra a major impact demand for healthy products, affecting an improvement or a positive contribution to the call "healthy" lifestyle, related to new unprocessed products, plant-based drinks, alternative proteins and healthy foods with strong antioxidant components. In addition, products that are respectful with the environment will have a plus: that they are more sustainable, with carbon emissions tending to zero (with the elimination of vehicles and machinery powered by fossil fuels) and with the use of alternative energies. Brands that have strategies that lead to zero waste will be rewarded, taking advantage of most of the products both at origin and in supermarkets. Also the brands that suppress plastics will have a plus this year. The war on waste and plastics will be a plus for agri-food brands. In addition, as the 8 major Agrifood macro trends in 2021, we would highlight the following:

1. Marketplace development and food delivery through ecommerce will be the dominant trend. COVID have further fueled this trend, especially with alternative proteins and those that promote proximity e-commerce. 2. New precision Agriculture , Livestock and Aquaculture platform systems : In it, the creation of data capture platforms (soil richness, plant well-being regarding water needs, pest level, fruit maturation, etc.), Bigdata analysis , and automation for Artificial Intelligence.

3. Alternative Proteins: Derived from vegetables, and seafood. The crane vegan and cultured meat will be trends: L to produce artificial tissues will be a trend increasingly powerful as a way to improve the environment. 4. Indoor Crops and Vertical Agriculture : It will be seen more and more frequently and combined with precision agriculture, it will be a new way of making more efficient the use of water and food control, being able to obtain between 4 and 6 annual harvests per culture. Managing the indoor climate and pests will be the keys to this new business. 5. Food Safety and traceability: Blockchain . 6. Biotechnology (Genetics in plants and DNA improvement for the fight against diseases), Animal Health and Welfare . They will be new approaches to genome editing (like CRISPR ), which allows for greater selectivity and reduces the element of chance. These techniques can not only create breeds with high resistance to harsh conditions, but can also be used to propagate them with vitamins and nutrients. 7. Robotics and Artificial Intelligence applied to agriculture . Robotics will enter the management of plantations, in the animal farms themselves. Machine vision , aerial detection and artificial intelligence will go together to improve efficiency and save costs. Although now the investment will be high, systems of the so-called shared economy will be explored for this. 8. Solutions to eliminate food waste and that each year are wasted about 1,300 million tons of food and 30% of the electricity generated to cultivate them .

ANNEX 1.- Methodology, definitions and references The INTEC Foundation's quantitative data infrastructure includes data from more than 3,000 companies, more than 42 ecosystems, and survey data from more than 100 startup executives around the world . The following is a description of the main datasets that make up the infrastructure of science data is displayed: Proprietary data of the INTEC Foundation: o Interview of more than 100 experts o Startups ecosystem survey 2017-2019 with more than 5,000 participants per year o WABF 2020 Post COVID-19 Founders Survey o Report AgFunder 2019 agrifood Ecosystem . o 2020 COVID-19 Knowledge Base with over 200 articles on policy actions taken around the world. o Report on the situation of investment and Startups in the world. July 2020. Crunchbase : global dataset on funding, exits and locations of startups and investors. PitchBook - Private Equity Market Data Provider Local partners (accelerators, incubators, start-up centers, investors): Data sources Primary data sources In alphabetical order Crunchbase (2017-2020). Crunchbase.com database CB Insights (2019-2020). Cbinsights.com database Dealroom.co BV. (2017-2020). Dealroom.co database AgFunder . Report 2019. PitchBook (2018-2020), a private capital market data provider database Startup Genome LLC (2017-2020). StartupGenome.com Database Statista 2020 Secondary data sources Forbes 2000 Github API International intellectual property index OECD Salary data from Glassdoor , Salary.com and PayScale Shanghai Rankings Techboard World Bank, ease of doing business

Madrid January 27, 2021