Agfunder Agri-Foodtech INVESTING REPORT ’19YEAR in REVIEW Agfunder Is a Digitally-Native Venture Capital Fund

AgFunder Agri-FoodTech INVESTING REPORT ’19YEAR IN REVIEW AgFunder is a digitally-native venture capital fund

We invest in bold, transformational foodtech & agtech founders

AgFunder is one of the world’s most active foodtech and agtech VCs. We’re rethinking venture capital for the 21st century. We were born online, and with our publication (AFN) we’ve built a global ecosystem of 75,000+ subscribers. This gives us one of the most powerful networks to help build impactful and important companies. This report, now in its sixth year, is our love letter to the industry.

Are you a corporate, startup, or investor? See our portfolio companies: Learn how to get engaged agfunder.com/portfolio agfunder.com INTRODUCTION While there was a pullback in both deal activity and Agri-FoodTech: funding for agri-foodtech’s largest global markets, many regions posted significant increases. Europe 2019 in Review continued its trend for growth across VC industries posting a 94% increase in agri-foodtech funding, while Latin America had a breakout year, closing $1.4 Venture capital investment across all industries billion in agri-foodtech funding across 40% more dropped 16% in 2019 against a backdrop of global deals than in 2018; that’s more than the entire LatAm uncertainty related to the US-China trade war, Brexit, VC industry in 2017. Africa also more than doubled its and a weakening Chinese economy, according to the funding in the space. VenturePulse report. This increasing global diversity of agri-foodtech was It was the same for agri-foodtech, particularly affecting notable in the make-up of investors too; the leader the US and China, but not to quite the same extent. In board is much more diverse this year, with more fact, investment in upstream technologies increased generalist investors than specialist funds taking top year-over-year and posted the strongest H2 on positions. SoftBank and Temasek were notable record, bolstered by alternative protein startups – additions to the top investors list, both investing thank you Beyond Meat IPO! -- and some large indoor across geographical borders; we also noted increased ag deals. international investment from US funds.

The drop in funding overall was largely a result of a All in all, the trajectory for our industry is fantastic, with 56% decrease in investment to consumer food 250% growth over the past 5 years. Feedback & delivery apps as the more mature players extended questions always welcome. their dominance in an over-saturated marketplace with ever-larger fundraisings. Louisa Burwood-Taylor, Head of Media & Research & The AgFunder Team

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 3 SOURCES Sources & Methodology

Data Sources & Curation We believe our knowledgebase represents the most Utilizing new advanced machine-learning algorithms and comprehensive and curated knowledgebase of agri-foodtech artificial intelligence to help identify and categorize agri- companies globally. foodtech startups, our knowledgebase has grown to over While we are happy to share our findings, we reserve all rights 29,939 companies, with new startups and historical data being with respect to AgFunder research and this report and we added each day. require it to be fully and accurately cited when any of the data, The raw data for the AgriFood Tech Funding Report comes charts or commentary is used. from Crunchbase, which gathers publicly available information such as press releases and US Securities and Exchange Filings, Undisclosed Financings as well as crowdsourcing directly from the industry. AgFunder Of the 1858 financings in our curated data set, 584 had contributes data from its own collection methods that include undisclosed financings, which could not be determined through private communications with investors and companies. We research or direct sources or were confidential. We excluded collect data from partners across the globe (see page 7) to undisclosed financings when computing averages and median ensure we have the most comprehensive and accurate data values. In some cases, we were able to confidentially obtain set in agri-foodtech investing. financing figures directly from the the investors, on the condition that they only be included in the aggregate figures. The raw data is painstakingly curated by the AgFunder team (usually taking several months) to ensure they are relevant, Multiple Financings accurate, up-to-date, complete, and categorized according to In some cases, Crunchbase displays multiple financings for the AgFunder’s proprietary tagging system for inclusion in our same company in the same year. This can be because a report. company closes subsequent rounds in the same year, but it can We update and improve our dataset continuously throughout also be the result of several closes of the same round. We try to the year, meaning total figures from previous years’ reports will combine these where possible but when they are clearly shift as our dataset becomes more complete. separate closes, we have kept them separate.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 4 SOURCES Sources & Methodology

Categorization We’ve also taken taken a stricter stance on cannabis and CBD- related startups; there needs to be clear proprietary technology AgFunder’s categorization system is designed to capture broad involved. We will not include pure CPG or pure production, as themes across the complex agri-foodtech value chain (see page we wouldn’t include pure production in any other crop. If we 4 for a list of categories). The agri-food sector has a wide supply believe the growing facilities are particularly hi-tech or utilize chain spanning inputs and industrials, farming, logistics, proprietary technology, we will still include it in the Novel wholesale distribution, processing, retail distribution and the Farming System category. The same goes for processed consumer. In many cases, technologies such as marketplaces products; if the extraction technique is particularly innovative, connect different links in the supply chain and so in this report we’ll include it as a Biomaterials or Midstream startup. Large we’ve chosen to focus on high-level themes. To assist with the vertically-integrated cannabis companies are also excluded. categorization and to avoid subjectivity, AgFunder first employs over 150 machine learning and artificial intelligence models to suggest category placement and to help tag the company Special Acknowledgement according to the technology and its place in the supply chain. Special thanks to Tim Li, Ellen Ehrsam and the rest of the Finally, the AgFunder team manually reviews the suggestions Crunchbase team for their support and assistance. for each company, often with significant research and debate among our team. In 2019, we added a new category, Cloud Retail Infrastructure, to relieve the Midstream Tech category of “later-stream” deals we felt no longer fit. Cloud Retail Infrastructure includes the growing number of technologies enabling companies to provide customers with on-demand, at-home dining such as ghost kitchens and last mile delivery services including delivery robots.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 5 SOURCES Our International Data Partners

In addition to our partnership with Crunchbase, we’ve partnered with several groups from around the world to help us collect more international data at the local level to ensure we can present the most comprehensive data set in the industry. Our partners for the 2019 report include Start-up Nation Central in Israel, SP Ventures in Brazil, Glocal in Argentina, Bits x Bites in China, ShakeUp Factory in Europe, and Omnivore in India. Thanks also to Sofia Ramirez for her Latin America contributions. Europe

Israel

India China

South America

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 6 SPECIAL THANKS Cover & Section Images Special thanks to our portfolio companies who contributed images to this year’s report.

MycoWorks produces Fine Mycelium™ Aerobotics provides early pest and leather. Its first product Reishi is crafted disease detection enabled by drone from natural mycelium and refined for imagery and artificial intelligence. luxury fashion and beyond.

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Brightseed discovers edible, plant- based nutrients that are scientifically- proven to improve health and wellness. Its mission is to make food as medicine a reality. Learn More

Root AI is an ag robotics company developing an intelligent and dexterous robots for picking fruits and vegetables in greenhouses.

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Trace Genomics uses advanced genomics and artificial intelligence to NUGGS is a foodtech startup using innovative protein analyze the soil microbiome and provide prescriptions that improve soil health and technologies to create a tender and meatier nugget that is increase yield. more advanced than an animal-based nugget. Learn More Learn More

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 7 2019 Overview

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 8 Image Courtesy of Made with Reishi™ by MycoWorks Agri-FoodTech Funding Breakdown 2019

Upstream Downstream Ag Biotech, Farm Management SW, Farm Robotics & In-store Restaurant & Retail, Online Restaurants, eGrocery, Equipment, Bioenergy & Biomaterials, Novel Farming, Restaurant Marketplaces, Home & Cooking Agribusiness Marketplaces, Midstream, Innovative Food YEAR IN REVIEW Key Insights for 2019

1. Downstream Drop Pushes Down Totals 2. Upstream Bucks VC Trend with Strongest H2 on Record For the first time since 2016, investment in downstream food technologies declined in 2019, driven by a 56% drop in While investment to Upstream startups increased just $100 funding to Restaurant Marketplaces. The more mature players million over the course of the year, it posted its biggest H2 on continued raising large rounds to increase their dominance in record, bringing in $4.6 billion between July and December. the over-saturated category, but it wasn’t enough to maintain This bucked the overall VC-industry trend where H2 funding overall funding volumes against a 57% decline in deal activity. was lower than in 2018, according to the VenturePulse report. eGrocery also suffered a 7% decrease in funding across fewer The alternative protein industry played a significant role as deals as the economics of delivery services cause challenges – Beyond Meat’s highly successful IPO flung the segment further Walmart reported a $1 billion loss on its e-commerce offering. into the spotlight; strong performance in the public markets eGrocery innovation remained active in China where the pushed the company’s valuation as high as $9 billion at one ongoing coronavirus threat could make these services point during the year as investors scrambled for ESG-related increasingly important for consumer access to food. China’s investments. Investing for positive impact beyond financial MissFresh, one of the leaders, raised one of the year’s largest gains is increasingly a must-have as opposed to a nice to have rounds to try and stay ahead of the competition. in the investing community globally and 2019 saw a surge in rhetoric and strategy around environmental and social issues But despite this pullback in funding for consumer-facing from some of the world’s largest investors. Investment in delivery services, we believe brick & mortar stores and Innovative Food startups, which are mostly alt protein plays, restaurants will still try to claw back business by offering doubled year-over-year to $1 billion, bolstered by Impossible their own delivery options, using a new category of enabling Foods’ $300 million bridge round and a 17% increase in the and white label technologies. Dubbed “Cloud Retail number of deals. Infrastructure” this new category includes ghost kitchens and last mile delivery services. A big round for robotic insect farm Ynsect, as well as AeroFarms and Infarm, drove a 38% increase in the Novel Farming Systems category, despite 16% fewer deals.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 10 YEAR IN REVIEW Key Insights for 2019

3. Some Geographies Post Significant Growth up the total, activity was demonstrably greater with 40% more deals closed during the year than in 2018. While the decline in headline funding is in line with overall VC industry for 2019, it was a good year for agri-foodtech in 4. Global Generalist Investors Enter Space multiple geographies globally. Europe’s VC industry continued to mature, and it was noticeable in agri-foodtech as Agri-foodtech’s investor base is more diverse than ever, investment increased 94% year-over-year to $3.3 billion. The with generalist, global and corporate investors making UK was the leader in the region and the fourth biggest multiple bets in the space. Foodtech and agtech are no globally with $1.1 billion raised across 112 deals, although longer the red-headed stepchild of the VC world as it did experience a small dip in the number of deals closed. sustainability becomes a 21st Century megatrend. The While food delivery is still the strongest category in the UK investor leader board for 2019 includes many more and Europe, the region is diversifying across categories, generalist investors and fewer agri-foodtech specialists. with leading startups in other areas like Novel Farming Many of these generalist investors are joining retail tech Systems, alternative proteins, fintech for ag, and deals that will feel more similar to other sectors, and the Agribusiness Marketplaces. same could be said for the alternative protein space, which will look and feel a lot like CPG for some investors, or even Many startups with operations across Africa are cloud computing, as agile co-packing networks make it headquartered in the UK, however those based on the easy to spin up new brands with little CAPEX. continent doubled their funding in 2019, aided by a large deal for fintech startup Opay out of Nigeria that enables Temasek and SoftBank are notable entrants to the leader consumers to transfer money, pay bills and order groceries. board this year, both investing across borders in a range of agri-foodtech startups. It was a strong year for Latin American agri-foodtech as the region raised $1.4 billion, up 32% year-over-year; that’s S2G Ventures continues to lead the specialist agri-foodtech more than the whole VC industry of the region raised in investor group while we at AgFunder further expanded our 2017. While a massive $1 billion, SoftBank-led round for portfolio and dipped our beak into our first downstream Colombian Cloud Retail Infrastructure startup Rappi pushed investment during the year.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 11 YEAR IN REVIEW Outliers Venture capital is driven by outliers and the agri-foodtech sector is no exception. For the last couple of years, the largest deals were in the food delivery segment and as the category continues to mature, it was the same in 2019. Here are the biggest to be aware of as they skew the overall results. It’s worth noting the role SoftBank is playing in this industry as much as others.

$1 billion $940 million $700 million

Rappi is Latin America’s leading on- Driverless delivery company Nuro It wouldn’t be a list of outliers demand delivery startup. raised this mega round from without a Chinese company raising Headquartered out of Colombia, and SoftBank at the beginning of 2019. an exorbitant amount of money to also operating in Argentina, Brazil, This company fits perfectly into our fund its rapid growth. Tencent- Chile, Ecuador, Mexico, Peru and new category Cloud Retail backed MissFresh, currently China’s Uruguay. It’s also a graduate of Y Infrastructure as an enabling leading eGrocer, was also an Combinator. This SoftBank-led $1 technology for on-demand, and its outlier in 2018, but continues to billion Series E round broke all records partnership with US supermarket need funds to keep up in a for Latin American venture capital at chain Kroger cemented its competitive, cash-burning category the time and coincided with a more relevance to the food industry. where online-offline retailers general growth in VC funding for the Nuro has raised more than $1 backed by Alibaba and JD.com region. Many see it as the start of a billion and this round valued it at continue to bite at its heels. This new era for entrepreneurship in $2.7 billion. Changshu government-backed LatAm. debt round is also funding new East China headquarters for MissFresh.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 12 Upstream + Downstream YEAR IN REVIEW Annual Financings | 2012-2019

Funding to agrifood tech startups dipped nearly 5% year-over-year to 2019 on the back of a decline in the rate of funding to food delivery consumer apps. However, as $20.8B more data is made public for 2019, the $19.8B 2018 and 2019 funding volumes may soon look similar.

$11.5B

$8.8B $8.6B

$5.7B

$2.9B $2.2B

2012 2013 2014 2015 2016 2017 2018 2019

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 13 Upstream YEAR IN REVIEW Annual Financings | 2012-2019

Investment in startups operating upstream, closer to the farmer and before the retailer, $7.5B $7.6B remained relatively steady year-over-year with a mere $100m (1.3%) increase.

$4.8B

$3.4B $2.9B $3.0B

$2.3B

$1.6B

2012 2013 2014 2015 2016 2017 2018 2019

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 14 Downstream YEAR IN REVIEW Annual Financings | 2012-2019

For the first time since 2016, investment in downstream startups declined in 2019. $13.2B Funding dropped nearly 8% driven by a $12.0B 56% decrease in investment into meal delivery marketplaces. Since the beginning of 2019, publicly-listed Blue Apron has lost more than two-thirds of its value, which appears to be placing downward pressure on lofty valuations. Investment in retail tech categories increased substantially, however. $6.5B $5.8B $5.1B

$2.8B

$0.56B $0.65B

2012 2013 2014 2015 2016 2017 2018 2019

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 15 YEAR IN REVIEW Quarterly Deal Volume and Activity

$8,000 700

600

$7,000 # Deals 576 600 $ Financing 515 527 $6,000 478 545 500 451 434 409 414 $5,000 398 400

364 464 400 444 370 396 $4,000 299 272 340 349 300

$3,000 316 266 241

135 200 $2,000 134124 164 99 79 93 88

100

$1,000 $1.3B $795M $612M $178M $238M $394M $723M $854M $1.0B $1.4B $1.8B $1.4B $2.3B $1.9B $2.9B $1.7B $2.1B $3.1B $1.8B $1.6B $2.6B $2.7B $3.8B $2.4B $4.2B $3.2B $7.2B $6.3B $4.8B $5.5B $4.2B $5.4B

$0 0

2012-Q12012-Q22012-Q32012-Q42013-Q12013-Q22013-Q32013-Q42014-Q12014-Q22014-Q32014-Q42015-Q12015-Q22015-Q32015-Q42016-Q12016-Q22016-Q32016-Q42017-Q12017-Q22017-Q32017-Q42018-Q12018-Q22018-Q32018-Q42019-Q12019-Q22019-Q32019-Q4

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 16 Upstream YEAR IN REVIEW Quarterly Deal Volume and Activity

$3,000 350 307 296 # Deals 289

300

$2,500 275 274 $ Financing 262 251 247 235 250 216 $2,000 256 188 234 221 200 168 214

$1,500 192 148 132 172 150 158 147 $1,000 141 127 83 100 72 72 70 56 48 50 46

$500

50 $1.2B $714M $290M $124M $147M $266M $559M $581M $745M $535M $719M $898M $665M $672M $906M $757M $856M $920M $877M $781M $1.1B $1.1B $1.4B $1.2B $1.6B $1.5B $2.6B $1.7B $1.5B $1.5B $2.5B $2.1B

$0 0

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 17 Downstream YEAR IN REVIEW Quarterly Deal Volume and Activity

$5,000 350

307

$4,500 # Deals

300 $ Financing

$4,000 255 237 250

$3,500 229 214 244 213 202 195 $3,000 195

178 223 200 158 $2,500 196 190 138 178 130 170 172 173 150 $2,000 157

$1,500 117 100 111 61 65 80 $1,000 52 43 42 41

31 50

$500 $103M $81M $322M $54M $89M $128M $164M $273M $297M $870M $1.1B $532M $1.6B $1.2B $2.0B $969M $1.2B $2.2B $880M $815M $1.4B $1.6B $2.4B $1.2B $2.5B $1.5B $4.6B $4.6B $3.1B $4.0B $1.7B $3.2B

$0 0

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 18 Deals by Category

Image Courtesy of Brightseed Photography by Nicola Paris DEALS BY CATEGORY Key Insights - Category

1. We added a new category this year for the developing a valuation of over $9 billion, promoted the sector. ecosystem of enabling technologies in the on-demand Although substitutes for red meat have been the economy. Cloud Retail Infrastructure includes startups primary focus, attention is now being paid to that enable food retailers and restaurants to offer replacements for poultry, pork and even seafood. consumers an on-demand, at-home service. Largely this Interest in cultured meat remains steady although it equates to cloud or ghost kitchens that enable anyone trails far behind plant-based innovations in terms of to start a delivery-only restaurant, and last mile delivery commercialization. services; think autonomous food delivery robots and courier matchmaking services. While a significant drop 3. Interest in grocery delivery startups declined this year in funding to Restaurant Marketplace and Online except in China where demand remains high. The Restaurant startups signifies an oversaturated economics of bringing groceries direct to a consumer’s ecosystem, we believe brick & mortar stores and doorstep remain challenging, particularly with restaurants will still work to gain some of their business perishable items. Walmart, for example, reported a $1 back by offering their own delivery options using some billion loss on its e-commerce business. Innovations like of these essentially white labelled tech services. And to GPS location services to alert retailers to a customer’s compete with the larger fast food chains that are arrival and robots to help pick and pack orders are developing tools in-house. Some mega deals from helping retailers reduce friction in their offerings. Colombia’s Rappi, California’s Nuro and Uber founder Travis Kalanick’s new startup CloudKitchens skewed the 4. Investment in Upstream technologies remained steady total for this category. in 2019, increasing a small amount ($100m) year-over- year, but there were declines in funding and deal 2. The Innovative Food category, which is mostly activity for the Ag Biotech, Farm Robotics, and alternative protein startups, experienced explosive Midstream Tech categories. These categories growth in 2019, doubling the funding it received in dominated early stage seed activity, however, which is a 2018. No doubt Beyond Meat’s dazzling 30x positive sign. oversubscribed IPO and public listing that soon reached

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 20 WHAT IS AGRIFOOD TECH? Agri-FoodTech Category Definitions

Ag Biotechnology Innovative Food On-farm inputs for crop & animal ag including genetics, Cultured meat, novel ingredients, plant-based microbiome, breeding, animal health. proteins.

Agribusiness Marketplaces In-Store Retail & Restaurant Tech Commodities trading platforms, online input Shelf-stacking robots, 3D food printers, POS systems, procurement, equipment leasing. food waste monitoring IoT.

Bioenergy & Biomaterials Restaurant Marketplaces Non-food extraction & processing, feedstock Online tech platforms delivering food from a wide technology, cannabis pharmaceuticals. range of vendors.

Farm Management Software, Sensing & IoT eGrocery Ag data capturing devices, decision support software, Online stores and marketplaces for sale & delivery of big data analytics. processed & un-processed ag products to consumer.

Farm Robotics, Mechanization & Equipment Home & Cooking Tech On-farm machinery, automation, drone manufacturers, Smart kitchen appliances, nutrition technologies, food grow equipment. testing devices.

Midstream Technologies Online Restaurants and Meal Kits Food safety & traceability tech, logistics & transport, Startups offering culinary meals and sending pre- processing tech. portioned ingredients to cook at home.

Novel Farming Systems Cloud Retail Infrastructure Upstream Indoor farms, aquaculture, insect, & algae production. On-demand enabling tech, ghost kitchens, last mile delivery robots & Downstream Both Miscellaneous e.g. fintech for farmers services

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 21 DEALS BY CATEGORY 2019 Agri-FoodTech Investment

eGrocer 2% 1% 4% Cloud Retail Infrastructure 4% 20% Restaurant Marketplaces

4% Midstream Technologies

4% In-Store Retail & Restaurant Tech

Ag Biotechnology

5% Innovative Food

Farm Mgmt SW, Sensing & IoT

6% 16% Agribusiness Marketplaces

Bioenergy & Biomaterials

Novel Farming Systems 10% Online Restaurants & Mealkits

12% Home & Cooking 11% Farm Robotics, Mechanization & Other Farm Eq

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 22 DEALS BY CATEGORY Deal Volume and Activity by Category

#Deals Despite a 7% decrease in funding to eGrocery, it was still dominant, driven eGrocer $3.9B 235 particularly by activity in China. Cloud Cloud Retail Infrastructure $3.2B Retail Infrastructure, Innovative Food and 56 Novel Farming Systems posted the Restaurant Marketplaces $2.4B 57 biggest gains, in that order. Midstream Technologies $2.1B 283 Innovative Food investment doubled on In-Store Retail & Restaurant Tech $1.9B 214 2018, driven in large part by Impossible Foods’ $300m bridge round but also a Ag Biotechnology $1.1B 122 17% increase in deal activity. Innovative Food $1.B 158 Investment in Novel Farming Systems Farm Mgmt SW, Sensing & IoT increased 38% but with 16% fewer deals $887M 205 as the more mature startups raised later Agribusiness Marketplaces $786M 104 stage rounds. Deal activity in the Cloud Retail Infra category was identical to 2018 Bioenergy & Biomaterials $771M 95 as the likes of Travis Kalanick’s Novel Farming Systems $745M 75 CloudKitchen drove the 250% increase in funding. Online Restaurants & Mealkits $332M 90

Ag Biotech deal activity dropped 22% Home & Cooking $285M 55 Upstream year-over-year while dollar investment Farm Robotics, Mechanization… $179M Downstream declined 33%. 66 Up+Down Miscellaneous $242M 38 Midstream Tech funding dropped 11% from 2018 with a small 3% decline in deal activity.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 23 DEALS BY CATEGORY Investment by Category 2012-2019

$14B Restaurant Marketplaces

Online Restaurants & Mealkits $12B Cloud Retail Infrastructure

Novel Fa rming Systems $10B Miscellaneous

$8B Midstream Technologies Innovative Food

$6B In-Store Retail & Restaurant Tech

Home & Cooking $4B Farm Robotics, Mechanization & Other Farm Eq

Farm Mgmt SW, Sensing & IoT $2B eGrocer

Bioenergy & Biomaterials 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 Agribusiness Marketplaces ------

H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Ag Biotechnology

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 24 DEALS BY CATEGORY Median Deal Size by Category eGrocery operations are labor-intensive Bioenergy & Biomaterials $3.5M and marketing spend has become a nightmare as steep competition erodes Ag Biotechnology $3.M market share and fickle customers flitter Innovative Food $3.M among many similar offerings. Midstream Technologies $3.M Innovative food offerings saw meteoric growth this year and faced challenges Novel Farming Systems $2.4M increasing supply to meet explosive Farm Robotics, Mechanization… $2.M demand, calling for larger rounds to ramp up production. Agribusiness Marketplaces $1.5M

Farm Mgmt SW, Sensing & IoT $1.5M As consumers show less interest in dining in, technologies supporting food eGrocer $3.4M delivery and pickup are gaining traction. Restaurant Marketplaces Most investment in this space goes to $3.4M finding subtle ways to diversify the Cloud Retail Infrastructure $2.6M offering to capture consumer loyalty, like Uber Eats’ test run of airport gate- In-Store Retail & Restaurant Tech $1.4M Upstream side delivery. A capital intensive Online Restaurants & Mealkits $1.1M Downstream category, ag biotech lost its spot as number one for median deal size but Home & Cooking $0.8M still remains high compared to other categories.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 25 Upstream DEALS BY CATEGORY Top 20 Innovative Food Deals

Beyond Meat’s dazzling IPO no doubt Impossible Foods $300M spurred investment overall and in its core Motif Ingredients $90M ingredient pea protein; supplier Puris Puris Proteins Proteins raised funding from Cargill to scale. $75M Perfect Day Foods $35M Alternative dairy gathered pace with Perfect Microphyt $32M Day releasing its first product, a cultured ice- The Not Company $30M cream, during the year. Chilean startup NotCo raised funding from Jeff Bezos’ VC Motif Ingredients $28M for its egg-free mayo and dairy-free milk v2food $24M products, while Ripple Foods took sales to Undisclosed $23M almost $50m during the year. DouxMatok $22M

Newly spun out from Ginkgo Bioworks, BlueNalu $20M Motif raised its Series A from a group of Noblegen $18M high profile investors including Bill Gates Strong Roots $18M and Richard Branson-backed Breakthrough Future Meat Technologies $14M Energy Ventures and New Zealand dairy Cubiq Foods $14M cooperative Fonterra to focus on novel Nutriati forms of protein for the animal-free space. $13M Wild Type $13M Cultivated meat startups also featured Kiva Confections $12M heavily, including BlueNalu, Future Meat, Aleph Farms $12M Wild Type and Aleph Farms. Ripple Foods $12M Algae-based offerings also gained steam thanks to Microphyt, and Noblegen. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 26 Invest in the Alternative Protein Revolution Minimum Investment: $1m Individuals/$5m Corporates Close: Summer 2020

Learn More: http://agfunder.com/protein

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 27 This does not constitute an offer to sell or a solicitation of an offer to buy any securities. Upstream DEALS BY CATEGORY Top 20 Novel Farming Systems Deals

Novel Farming Systems startups enjoyed Ynsect $125M a 37% increase in funding year-over-year AeroFarms $100M as the category’s most mature startups Infarm $100M raised larger rounds. AppHarvest $82M Ynsect’s robotized mealworm farming Sunens $63M tech broke records with this Series C led Bowery Farming Inc $50M by UK-based impact fund Astanor. Also Fifth Season $35M in insect farming, Holland’s Protifarm Seedo $30M raised Series B funding. AgraFlora $29M While plant factories have dominated Solaris Farm $20M media and funding attention in the past, Protifarm $11M distributed business models are Shenandoah Growers $10M gathering pace; Germany’s Infarm Abundance $9M deploys its connected growing cabinets TransCanna $7M in supermarkets. Intelligent Growth Solutions $7M Fifth Season came out of stealth with a Yalelo $6M system that uses 40 robots. Wildbiene + Partner $5M Vertical Future $5M Bowery wasn’t looking for more capital Urban Crop Solutions $5M when it closed this Series B extension but will use the funds to construct a third Prêt à Pousser $5M facility near Baltimore. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 28 Upstream DEALS BY CATEGORY Top 20 Ag Biotechnology Deals

Gene editing took the stage for Ag Inscripta, Inc $125M Biotech, with the two largest deals. Inari $89M Inscripta’s Series D came just months after Provivi $85M an extended Series C closed on around PlantResponse Biotech $77M $100m. The Boulder, CO startup aims to M2I Life Sciences $66M democratize gene-editing by selling Greenlight Biosciences $50M equipment to researchers and giving away enzymes for free. Terramera $45M Vestaron Corporation $40M Inari’s Series C marked the largest funding AgroSavfe $39M round secured by a female CEO in Ag DNA Script $39M Biotech so far. The Flagship-founded company brought in Dubai’s sovereign S&W Seed $35M wealth fund, Asia’s EDBI and Acre Venture Benson Hill Biosystems $33M Partners as investors in the round. Calysta Energy $30M Inscripta, Inc $20M Novel crop protection is another growing segment in the category (Provivi, Vestaron, TerViva $20M AgroSavfe, and Greenlight). Unibio International plc $15M Duoning Biotech $15M Plant Response recently merged with Koch Undisclosed Biological Solutions and acquired Pathway $13M Logic in the first of a planned series of Sistema Biobolsa $12M rollup deals to better position itself in the Ostara Nutrient Recovery… $11M developing ag biologicals market.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 29 Upstream DEALS BY CATEGORY Top 20 Midstream Tech Deals

Investment in post-farmgate technologies Convoy $400M and those in the middle of the supply chain Samsara Networks Inc $300M remained strong this year, with total dollars Ginkgo Bioworks $290M invested dipping only slightly to $2bn from Vayyar $109M $2.3bn. Yijiupi $100M Convoy hopes to disrupt the trucking Yijiupi $80M industry with software and apps imitating Flaschenpost GmbH $57M Uber. The ex-Amazon exec-led company LeafLink $35M attracted investors like Al Gore’s Benchling $35M Generation to top off existing backing from Green Rabbit $31M Jeff Bezos and Bill Gates. Tipa Corp $25M Ginkgo Bioworks raised a Series E to Telio.vn $25M expand its synthetic biology platform and Bringg $25M spun out its food business during 2019, Undisclosed $25M Motif FoodWorks, which is focused on Cannalysis $23M creating ingredients for alternative animal Locus.sh $22M proteins using Ginkgo’s fermentation tech. Kobo360 $20M Other companies in this group provide Cambrian Innovation $18M food and beverage procurement services Sulapac $17M for restaurants, traceability, food freshness FoodMaven $15M tech, food safety and testing, packaging, and ingredient discovery. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 30 Upstream DEALS BY CATEGORY Top 20 Ag Marketplace Deals

Ag marketplaces connect farmers with ProducePay $205M resources like financing, agronomic support, Undisclosed $150M and marketing. Ninjacart $100M It’s worth pointing out that Produce Pay’s Xinliangji $44M category-leading raise was a debt facility to Agrostar $27M fund its upfront payments to farmers selling Agrofy $23M their produce through its platform. Bushel $20M Ninjacart, which also helps farmers trade Qdama $14M their produce, snagged India’s largest ever Yimutian $14M farm tech deal to-date. Indian farmers need Dafengshou $14M access to markets to sell their produce but also purchase inputs. Agrostar helps with the Wefarm $13M latter. Grainpulse $11M Frubana $10M Argentina’s Agrofy closed the largest agtech Just Free $8.7M deal on record for LatAm at the end of the year for its diversified ag products Tillable $8.3M marketplace while Wefarm (AgFunder Sorabito $8.2M portfolio company) closed a Series A to ProcSea $7.2M develop a marketplace for African farmers to Guoquan Shihui $7.1M access much needed, quality inputs. MaxAB $6.2M In the US, FBN, Bushel, Tillable and Stable Stable $6.0M offered a variety of services from rentals to grain trading, to seed and chemical sales. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 31 Upstream DEALS BY CATEGORY Top 20 Farm Management SW, Sensing & IoT

Remote sensing dominated this category in Planet Labs $168M 2019. BlackSky Global $50M Planet’s Series D straddled 2018-2019 and was Satellogic $50M prematurely reported last year before it’s full Orbital Insight Inc. $50M close. We have moved the deal to 2019. DroneDeploy $35M Satellite-powered intelligence company PrecisionHawk $32M BlackSky secured debt financing from Intelsat to Aerodyne Group $30M boost its Earth observation constellation. Capella Space $29M Argentinian Satellogic’s Series C also fuelled Dibotics $20M expansion with the goal of capturing Earth at 1- Hortau $20M meter resolution weekly. Descartes Labs $20M While many drone tech startups have pivoted PlanetIQ $19M away from ag, put off by the complexity and TriEye $17M challenge of creating value for farmers, a few Maifei Technology $14M first movers remain, including PrecisionHawk, which raised a Series D to build AI-powered Capella Space $14M aerial data analytics, and DroneDeploy, which CropX $13M raised a Series D backed by Bessemer VP, albeit FieldIn $12M to expand into new industries. SeeTree $12M While farm management SW is an increasingly Aquabyte $10M crowded space, Israel’s Fieldin (AgFunder Gro Intelligence $10M portfolio company) stood out to us for its in- depth offering in fresh produce and nuts. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 32 Upstream DEALS BY CATEGORY Top 20 Biomaterials & Bioenergy Deals

This increasingly-diversified category was Genera Energy $118M typically dominated by bioenergy in the Bioenergy DevCo $106M past, but as cheap fossil fuels killed the Enerkem biofuels dream, many startups pivoted into $76M other types of biomaterials. Genera now LanzaTech $72M manufactures fiber-based paper and Mile High Labs $65M packaging products, for example. Neptune Wellness Solutions Inc. $41M

Developments in synthetic biology have AFYREN $24M also spurred innovation in this category with Global Bioenergies $19M Afyren creating bio-based consumer MycoWorks $17M products to replace petroleum with natural Carbios $16M micro-organisms, while MycoWorks Halo Cannabis $13M (AgFunder Portfolio company) is creating a Good Natured Products Inc. $13M leather alternative from natural mycelium. Ecovative Design also offers an alternative Sistema.bio $12M textile product. Metabolix $12M DMC Biotechnologies $11M Anaerobic digestion tech appears in this DMC category with Bioenergy DevCo acquiring $10M BTS Biogas to operate as an affiliate during Ecovative Design $10M the year and added to its footprint of over Biosynthetic Technologies $9.5M 200 anerobic digesters globally. Vaxess Technologies $8.2M

Novel cannabis extraction and hemp-based Aqdot $7.8M products also feature. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 33 Upstream DEALS BY CATEGORY Top 20 Farm Robotics Deals

Rounding out upstream deals as the Naio Technologies $16M smallest category, robotics saw a 46% drop Percepto $15M in funding across 8 fewer deals than 2018. Farmwise With a number of single-digit deals, $15M skepticism over farm robotics efficacy and Nileworks $14M durability remain. Current offerings are Blue Ocean Robotics $12M narrow in their application such as Verdant Robotics $12M strawberry harvesting or weed pruning. Wingtra $10M French startup Naio led the pack with its Maka Autonomous Robots $9M Series A round led by France’s national Pyka $8M investment bank Bpifrance for its weeding Advanced Farm Technologies $8M robots. Cavallo Ventures-backed FarmWise BioLumic $7M is also in the weeding robot market. Agerris $7M Percepto’s Series A was joined by strategic Hyliion $6M investor Hyundai. It’s planning a rapid Kiwi Technologies $6M expansion of its facility-monitoring Moleaer $5M autonomous drones. TerraClear $5M Despite its nascent stage, farm robotics Tibot Technologies $3M continues to show promise when it comes to American Robotics $3M addressing the continued and growing Growlife $3M labor shortages in agriculture as well as taking over tedious and time-consuming I-dripper $2M jobs around the farm to free up labor for more meaningful work. AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 34 Downstream DEALS BY CATEGORY Top 20 Retail & Restaurant Tech Deals

Technologies geared towards optimizing Toast $250M grocery and restaurant operations showed a Ubox 友宝 $225M slight boost in overall funding this year TouchBistro despite a decline in deals. Restaurants are $119M feeling the heat from food e-commerce so Pine Labs $103M innovators are helping them to up the ante Restaurant365 $88M in-house to keep foot traffic coming through CitiXsys $60M the door with digital tools aimed at Zaihui $50M promoting customer loyalty, providing a Punchh, Inc. $40M better service experience and ideally increasing their turnover. Lunchr $34M Choco $34M Brightloom pivoted from a robotic Kitchen core $33M restaurant to a digital service provider Coople $32M enabling automation in restaurants. There was a noticeable increase in robotic tech for Brightloom $30M both restaurants and grocers. YesGo $30M Warung Pintar $28M Point of service startup Toast closed a Series Kukui Corporation E at a valuation of $2.7bn and TouchBistro $27M following suit with funding from Ontario’s Simbe Robotics $26M public pension (OMERS). Dishcraft Robotics $25M Fetch Rewards $25M Despite the fall-out for unmanned stores and vending machine tech in China in 2018, Fountain $23M funding came in for some like Ubox, which raised from Alibaba through Ant Financial.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 35 Downstream DEALS BY CATEGORY Top 20 Cloud Retail Infrastructure

Previously most of these startups would Rappi $1,000M have been in our Midstream Tech Nuro $940M category, but because some of the tech is CloudKitchens consumer-facing, it felt appropriate to $400M split it out. Glovo App $169M Glovo App $167M Most of this category is enabling the Loggi $150M burgeoning on-demand and at-home consumption economy. These aren’t Fabric (was CommonSense… $110M actual retailers themselves or Kitopi $60M marketplaces, but enablers for those Panda Selected $50M services. Starship Technologies $40M

Rappi broke all records in Latin America ChowNow $21M with this Soft Bank-led Series E to connect Skipcart $20M consumers with a range of third parties. Virtual Kitchen Co. $15M Spain’s answer to Rappi, Glovo, raised Mimic $9M both a Series D and Series E of very Flytrex Aviation $8M similar sizes during 2019. Skyports $7M SoftBank also led self-driving delivery SynergySuite $6M robot startup Nuro’s Series B. Kedai Sayur $4M CloudKitchens is Uber founder Travis 2ndKitchen $3M Kalanick’s new venture which raised a Manna $3M whopping $400m in Series A funding. Saudi Arabia’s sovereign wealth fund backed the deal valuing the 2016- founded company at roughly $5bn. AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 36 Downstream DEALS BY CATEGORY Top 20 eGrocery Deals

China dominated the eGrocery category in MissFresh e-commerce $700M 2019 as services promised to offer Chinese Yipin Fresh $298M consumers better access to produce, often Picnic organizing them into local buying groups $275M to streamline the country’s fragmented Grofers $220M supply chains. Furong Xingsheng $200M Benlai Life $200M YpiniFresh, a fresh grocery discount shop, raised funding to launch a new business Bigbasket.com $150M line. Beidian $126M The Green Organic Dutchman… $103M In India’s largest online grocery deal to Pupumall $100M date, Grofers attracted funding from SoftBank and Tiger Global at Series F to Tongcheng Life $100M expand its supply chain operations. South Mathem $97M Korean investment firm KTB Ventures Dailuobo $89M reupped along with Sequoia Capital. It Market Kurly $88M announced a $70m Series F tranche later in Grofers $70M the year. Flaschenpost $57M The news of Grofers’ investment came a Pupumall $55M few weeks after Alibaba invested in major The Green Organic Dutchman… $42M rival BigBasket’s Series F. Both companies Furong Xingsheng $40M are racing to stake territory in the Indian online grocery space. FreshMarket $35M

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 37 Deals by Stage

Image Courtesy of Root AI AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 38 DEALS BY STAGE Key Insights – by Stage

1. Overall agri-foodtech deal count decreased by 15% to 5. Growth in funding was largest at the Series B stage, 1,858 deals in 2019. Most of that drop occurred at which increased a whopping 90% over 2018 ($3.8bn Seed and Series A stage. compared to $2.2bn in 2018), with only a 15% increase in the number of deals at that stage. Nuro, which raised 2. Seed stage deal activity decreased by 19.2% year-over- $940m for its Series B round, skewed the data. The top year from 2018. Seed funding reached $859.4m across eight Series B deals in 2019 raised $100m or more — 1,090 deals, representing a 7.1% year-over-year drop in well above the $12m median deal size for that stage. dollar volume. 6. Series D and Later stage deals increased 18.9% by deal 3. Upstream companies dominated 2019 Seed stage activity in 2019 but decreased 23.5% in dollar volume. deals, taking in $563m across 609 transactions, The top three deals claimed $2.3bn, or 25.5%, of the compared to downstream companies, which only $9bn transacted at these later stages. And unlike early raised $281 million across 452 deals. The top 10 seed stage deals, downstream companies dominated Late stage deals all raised $10m or more, more than 10x the stage funding, signifying downstream companies’ median Seed stage deal size in 2019. ability to raise more funding and raise it faster than 4. Overall, early stage deal count (Seed and Series A) their upstream peers. Only four upstream companies dropped significantly (19.2% and 23.6% respectively) made the Top 15 Late stage funding rounds. while dollar volume dipped only slightly. 7. In all, the balance of upstream versus downstream CloudKitchens’ $400m Series A raise radically skewed funding favored downstream companies at all but the the results of the Series A funding class, whose median Seed stage, even though upstream companies deal size in 2019 was only $6m. Combined with accounted for a larger share of deal count at every Beidian, Motif FoodWorks and Dailuobo, the top four stage. Series A deals absorbed $705m, or 25%, of $2.8bn in Series A funding.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 39 DEALS BY STAGE Overall Deal Volume and Activity by Stage

The jump in late stage funding was less significant in # Deals 2019 than in the previous two years, coming in at 18.9% $ Financing year-over-year from 2018. The largest deals in 2019 were Rappi, topping $1bn, Nuro, DoorDash, Deliveroo and CloudKitchens. Interestingly, not all of these were late

$8,000 stage deals. 1200

1090

$7,000 $7.0B 1000

$6,000

800

$5,000

$4,000 600 $3.8B

$3,000

400 $1.9B $2,000 $1.5B 169 343 119 $2.0B 200 61 $1,000 50 26 $859M $2.8B

$0 0 Seed A B C D Debt Late

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 40 Upstream DEALS BY STAGE Deal Volume & Activity by Stage

Upstream companies received 38% of all agrifoodtech # Deals funding. They dominated Seed stage funding, both in $ Financing terms of deal count and deal volume. At all other stages, there is a larger number of companies claiming a smaller share of capital than their downstream peers.

$2,500 700

609 600 $2.2B $2,000

500

$1,500

400

$1.3B 300 $1,000 $1.1B 194 $1.0B $837M $510M 200

$500 86 75

$563M 32 100 16 27

$0 0 Seed A B C D Late Debt

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 41 Downstream DEALS BY STAGE Deal Volume & Activity by Stage

Downstream companies received 62% of all agrifoodtech funding, spread across # Deals fewer deals as they generally raise larger rounds than their upstream peers. $ Financing Downstream companies also skew deal data: the reason some of these funding levels are so large is from outliers like CloudKitchens and Nuro. In fact the $400m Series A raised by CloudKitchens, exceeds the total raised by the 452 downstream

$6,000 Seed stage startups. 500

450

$5,000 452 400 $4.8B

350

$4,000

300

$3,000 250

$2.8B 200

$2,000

150 81 147 $1.0B $805M 100 $1,000 44 $750M 29 $1.6B 9 50 $281M 19

$0 0 Seed A B C D Late Debt

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 42 DEALS BY STAGE Deal Average and Median by Stage

Outliers always skew a distribution which shows up as

a divergence between median and averages. Average The median agri-foodtech deal size for the Seed stage Median fell below the global generalist VC markets, where it was $1.1m, according to Pitchbook. Meanwhile,

$90 median Series D and Late stage rounds were larger $80M than the global generalist VC median of $10.4m. $78M $80

$70

$60

$50

$40 $35M $39M $30 $22M $31M $33M

$20 $25M $10M

$10 $1.3M $13M $2.3M $0.5M $6.0M $0 Seed A B C D Debt Late

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 43 DEALS BY STAGE Top 15 Seed Deals

Upstream companies dominated deal activity Outsight (was Dibotics) $20M at the seed stage, with 609 upstream companies raising $563m compared to 452 Solaris Farm $20M downstream companies raising only $281m. Fyllo $16M

In the top 15 list, the upstream companies Swiftly $16M secured investor backing for smart sensors, Cubiq Foods cannabis-tech, cellular ingredients, robotics, $14M autonomous vehicles and on-farm logistics. Verdant Robotics $12M France’s Outsight (formerly Dibotics) makes sensors for data analytics while US-based Jüsto $10M Solaris Farm is a high-tech, greenhouse- Frubana $10M based cannabis grower. NewTropic $10M Downstream companies raised for in-store Skysys $10M and offsite retail tech, online grocery and egrocery. Karakuri $9.1M

Mimic $9.0M Three of the top Seed deals—Frubana, Justo and Mimic—are focused on food logistics in Remrise $8.2M Latin America. Vital Technologies $8.0M Upstream

Downstream All top 15 deals raised far more than the Pyka $8.0M median Seed stage round of $0.3m.

AgFunder Portfolio Company

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 44 DEALS BY STAGE Top 15 Series A Deals

The Upstream sector’s dominance stops at CloudKitchens $400M the earliest stage of funding. From Series A and up, downstream deals take the lead. Beidian $126M

Motif FoodWorks $90M Skewing the Series A aggregate deal data is US-based CloudKitchens, Uber founder Travis Dailuobo $89M Kalanic’s new startup. Opay $50M

Motif (US) is a plant—based ingredients Starship Technologies $40M company spun out of Gingko Bioworks. The Fifth Season $35M company raised its $90m round in February, Choco then secured an additional $27.5 in August $34M from a new crop of investors. The Not Company $30M

LinLInYi $30M US and China-based companies ruled Series A funding. Nigeria’s digital payments Nice Tuan (also Shi Hui Tan) $28M company Opay claimed the fifth spot, while Motif FoodWorks $28M Germany’s Choco, Chile’s Not Company, and Vietnam’s Telio also made the list. Kukui Corporation $27M

Simbe Robotics $26M Upstream The fifth largest deal, Opay, is a OPay Nigeria- Downstream based mobile payment service that allows Telio.vn $25M customers to transfer money, pay bills and order groceries..

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 45 DEALS BY STAGE Top 15 Series B Deals

Like the Series A funding data, Series B data Nuro $940M is skewed by a significant outlier. US-based autonomous delivery vehicles company Nuro Yipin Fresh $298M raised its nearly ten-figure round led by Furong Xingsheng $200M SoftBank’s Vision Fund in February. It’s not a pure agrifood play: the company’s vehicles Opay $120M are designed for transport of food but not Fabric (was CommonSense… $110M exclusively for the agrifood sector. Pupumall $100M Two eGrocers in China, Yipin Fresh and Tongcheng Life $100M Furong Xingsheng, claimed the top two and three spots in the top Series B rounds. Infarm $100M

In the fourth spot, Nigeria-based Opay AppHarvest $82M followed its Series A round in July with a Kitopi $60M $120m in a Series B in November. Pupumall $55M While downstream companies captured two- thirds of the spots on this list, three of the Bowery Farming Inc $50M upstream companies (AppHarvest, InFarm Terramera $45M and Bowery) are indoor farming ventures. Xinliangji $44M Upstream China’s Xinliangji is a seafood supplier. Downstream Kitchen United $40M

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 46 DEALS BY STAGE Top 15 Series C Deals

There were only 61 Series C deals in agrifood Picnic $275M tech VC, and the top 15 account for 68.4% of total Series C funding. Wolt $130M Ynsect European companies showed up in force. Two $125M European delivery companies topped the list: Ninjacart $100M Netherlands-based Picnic and Finland-based Inari $89M Wolt. France’s Ynsect and its insect-based farming operations claimed the third spot. Restaurant365 $88M Companies from Switzerland (Flaschenpost) Provivi $85M and Belgium (Agrosavfe) also made the list. CitiXsys $60M Three companies on this list raised Series C funding for software solutions for the restaurant Flaschenpost GmbH $57M and hospitality sector: US-based Restaurant365 Satellogic $50M and CitiXsys and China-based Zaihui. There were also a number of biotech companies: US- Panda Selected $50M based Provivi and Greenlight Biosciences and Greenlight Biosciences $50M Belgium’s Agrosavfe. Also in the US, Inari is focused on plant-breeding. Zaihui $50M

Punchh, Inc. $40M Upstream India’s direct-from-farm delivery giant Ninjacart Downstream is the only company to make the list from AgroSavfe $39M outside the US, Europe and China.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 47 DEALS BY STAGE Top 15 Late Stage Deals

This chart accounts for deals at Series E stage Rappi $1.0B or bigger. It includes private equity and some micro-cap listed companies with a valuation DoorDash $600M of less than $350 million, which we consider Deliveroo $575M to be young and still startup in nature. That said, none of the deals that made the top 15 DoorDash $400M list are in fact private equity or listed Impossible Foods $300M microcaps, highlighting how far venture capital can go. Samsara Networks Inc $300M Ginkgo Bioworks $290M This list can be largely summed in two words: delivery companies. And they are Toast $250M geographically diverse. The top deal, with a Ubox 友宝 $225M 10-figure funding round, is Colombia’s Rappi. US-based DoorDash raised two late-stage Grofers $220M rounds in the first half of the year: a Series F in Undisclosed $175M February and Series G in May. Two are based in Europe (Deliveroo and Glovo), two in India Glovo App $167M (Grofers and BigBasket) and one in Brazil Bigbasket.com $150M (Loggi). Loggi $150M Upstream

Downstream TouchBistro $119M

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 48 Deals by Geography

Image Courtesy of Trace Genomics DEALS BY GEOGRAPHY Key insights – by Geography

1. While our reporting of other regions globally has the fifth largest number of deals to the global improved thanks to our data partners (see page 8), ecosystem over the year with a diversified pool of there’s no doubt agri-foodtech is now a globally diverse investments across most categories. investment sector. Increasingly US-based investors are investing across borders as opportunities in markets like 5. 2019 was a breakout year for the Latin American region, Asia and Latin America become too hard to ignore. A as it closed $1.4 billion in funding across 40% more recent example is Acre VP and Fall Line Capital’s first deals than in 2018. That’s more than the LatAm VC overseas investment in Argentinian ag marketplace industry overall raised in 2017. Investment in the region Agrofy. At the same time, major investors from other represented 4.5% of deal activity and 7.3% of dollar regions, especially Asia with the likes of SoftBank and funding in 2019, compared to 3.9% and 7% in 2018 Temasek, are investing across the globe. respectively. Colombia’s $1 billion for Rappi took a large chunk of the funding total, but the increase in deal 2. US deals now account for 35% of global deal activity activity is notable. Argentina was a particular driver of while countries like China, India and the UK represent a that growth in deal activity, a fantastic achievement combined 24% of deal activity. In dollar terms, US considering the political turmoil of the second half of startups raised 44% of total funding while those other the year. leading countries contributed a combined 28% to the funding total. 6. Deal activity dropped in most countries, confirming the general trend for a pullback in funding to the sector. 3. While the bulk of the investment in China and India’s India, Brazil, Ireland, Australia, Singapore, Indonesia, agri-footech space was directed at the food delivery and Argentina were among the exceptions to that rule. and retail spaces, the UK is more diversified with some leading startups in other areas like Novel Farming Systems, alternative proteins, fintech for ag, and agribusiness marketplaces.

4. Israel continues to punch above its weight contributing

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AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 51 This does not constitute an offer to sell or a solicitation of an offer to buy any securities. DEALS BY GEOGRAPHY Global Investment World Map

# Deals

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 52 DEALS BY GEOGRAPHY Top 20 Countries by Investment

While most regions experienced a pullback United States $8.7B 653 in deal activity, there was notable growth in China $3.2B 181 funding for several countries. The biggest India $1.3B growth in dollar terms came from 152 Colombia, UK, Israel, The Netherlands, United Kingdom $1.1B 112 Nigeria, Spain, Germany, France, Colombia $1.0B 12 Argentina, Sweden, and South Korea. Israel $592M 67 Canada By deal count, Japan, India, Mexico, Kenya, $508M 56 Nigeria, Argentina, Singapore, Kuwait, and France $495M 41 the Czech Republic grew the most. Spain $439M 31 Netherlands $335M 18 Regionally, deal activity increased the most in Latin America (36% to 83 deals) and Germany $274M 30 increased 31% in Africa to 46 deals. But in Brazil $204M 30 all other regions, startups closed fewer Nigeria $201M 13 deals than in 2018. Finland $149M 9 In dollar terms it was a different story due Switzerland $125M 17 to large deals pushing totals up. African Sweden $121M 12 startups raised more than double what Korea, South $117M 4 they did in 2018 to $282m; European Argentina $100M 16 startup investment increased 94% to Australia $90M 28 $3.3bn; and Latin America startups raised Japan $1.4bn, up 32% year-over-year. $88M 39

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 53 DEALS BY GEOGRAPHY Top 20 Countries by Investment $2.0B

Since partnering with Bits x Bites in Argentina $1.8B Shanghai, China, we’ve been able to reveal Australia just how extensive China’s food tech industry is becoming. While extra reporting $1.6B Brazil and a couple of large outlier deals Canada contributed to the big jump in 2018 – $1.4B double the dollars and 72% more deals – China there was still a significant uptick in France Chinese agri-foodtech activity that year, $1.2B resulting in some pullback in 2019 Germany where outliers were fewer. $1.0B India

Ireland $800M Israel

Japan $600M Singapore

$400M Spain

United Kingdom $200M United States

$0.0M 2012 2013 2014 2015 2016 2017 2018 2019

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 54 DEALS BY GEOGRAPHY Top 15 Non-US Deals

This list is much more diverse globally than Rappi $1.0B in 2018 when it was dominated by Chinese deals with a strong showing from India. MissFresh e-commerce $700M

This added geographical diversity Deliveroo $575M highlights how the industry is maturing Yipin Fresh $298M across the globe and the wealth of funding available for high-growth downstream Picnic $275M startups. Ubox 友宝 $225M Large, international and corporate Grofers $220M investors were involved in many of these deals including SoftBank, T. Rowe Price, Benlai Life $200M KKR, Microsoft, Amazon, and Sequoia. Furong Xingsheng $200M Spain’s delivery anything app Glovo did a Glovo App $169M Series D in April and a Series E in December, weirdly of similar size. iwoca $168M

Iwoca is a fintech play offering credit to Glovo App $167M small businesses across Europe, including Bigbasket.com $150M many in the food sector. Upstream Loggi $150M In a rare showing from Finland, Wolt raised Downstream the funding to expand its AI-driven Wolt $130M Up+Down restaurant marketplace across Europe.

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 55 DEALS BY GEOGRAPHY Top 15 US Deals

It’s interesting to see the weighting towards Nuro $940M upstream deals in the US leaderboard despite the dominance of downstream deals DoorDash $600M overall. This highlights the diversification of DoorDash $400M the US agri-foodtech market. Convoy $400M Nuro’s SoftBank-backed round valued the CloudKitchens $400M company at $2.7 billion and went towards expanding the company’s fleet of self-driving Samsara Networks Inc $300M delivery robots, including its partnership with Impossible Foods $300M supermarket chain Krogers. It also planned to expand beyond California. Ginkgo Bioworks $290M

Both Samsara Networks and Convoy are Toast $250M Midstream Tech transport and logistics ProducePay $205M technologies, while Toast is an In-store retail technology. Planet Labs $168M

ProducePay, Farmers Business Network and ezCater $150M Planet Labs are all farm technologies but in Inscripta, Inc $125M different segments covering online product TouchBistro $119M Upstream sales and lending, and satellite data. Downstream Genera Energy $118M

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 56 DEALS BY GEOGRAPHY U.S. Investments: Number of Deals By State Map

653

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 57 DEALS BY GEOGRAPHY U.S. Investments : Value of Investments by State

Unsurprisingly, California remains the most active state for tech startups, taking in over $1bn more than all other states combined.

The results are slightly skewed by startups that move their headquarters to Silicon Valley from other parts of the country and overseas. We try to keep companies $4.9B registered to where they were founded but it’s difficult as profiles are updated on Crunchbase to a company’s current status.

$1.1B

$538M $347M $443M $161M $59M $63M $82M $84M $96M $101M $110M $123M $140M

OR PA NC TX MN NJ MD TN KY IL CO NY WA MA CA

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 58 Investor Activity

Image Courtesy of Aerobotics INVESTOR ACTIVITY Key insights – Investor Activity

1. Investors are diversifying more than ever, clearly foodtech investor group, investing in a diverse range of highlighted in the venture capital leader board this year, deals across the supply chain and soon to be adding to which includes many more generalist investors, and its group of funds with an aquaculture-focused vehicle. fewer agri-foodtech specialists than last year. Many of these generalist investors are joining food delivery and 4. We at AgFunder have continued to expand our retail tech deals that will feel more similar to other portfolio, investing in deals as diverse as an AI-powered sectors, and the same could be said for the alternative point-of-sale technology for quick-serve restaurants protein space, which will look and feel a lot like CPG for (Tray) to smallholder farmer networks and ag some investors. marketplaces in Africa (Wefarm) and India (DeHaat).

2. Notable additions to the leaderboard are SoftBank and 5. Anterra Capital returned to the leader board this year Temasek, two Asia-based groups that have made with a number of unreported investments, including headlines with their growing global portfolios. Both of some companies they have created internally in a quasi- them participated in US restaurant marketplace incubator model. Most of them are Ag Biotech and DoorDash’s $1 billion round and they both made bets in none of them are downstream. our new category “Cloud Retail Infrastructure” for 6. While the number of accelerators dedicated to the technologies enabling the on-demand food space in space continues to climb – including our own new Israel (Fabric - Temasek), Latin America (Rappi and entrant GROW out of Singapore, Asia – agri-foodtech Loggi - both SoftBank), and the US (Nuro - SoftBank). generalist accelerators continue to play an important Other investments from the SoftBank Group were role in supporting startups at the early stages globally. mostly in the food delivery category, while Temasek invested in alternative protein, ag biotech, and vertical farming.

3. S2G Ventures continues to lead the specialist agri-

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 60 INVESTOR ACTIVITY Most Active Accelerator Funds

RANK INVESTOR LOCATION # INVESTMENTS

1 SOSV Princeton, NJ 44*

2 YCombinator Mountain View, CA 38*

3 500 Startups San Francisco, CA 31*

4 TechStars Global 14

5 The Yield Lab St Louis, MO, Rosario, Argentina 13

6 Hatch Bergen, Norway, Singapore 12

7 Big Idea Ventures Singapore, New York, US 10

8 Brinc Global 11

10 GROW Accelerator Singapore 9

11 Plug & Play Ventures Global 8

Radicle San Diego, US 12 7 Sparklabs Cultiv8 Sydney, Australia

*includes investments made by multiple accelerators and/or follow-on funds AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 61 INVESTOR ACTIVITY Most Active Venture Capital Fund Managers*

RANK INVESTOR LOCATION # INVESTMENTS

1 S2G Ventures Chicago, IL 22

2 AgFunder San Francisco, CA 15

3 Anterra Capital Amsterdam, HO 12

Tiger Global Management New York, NY 4 10 Temasek Singapore, Global

Blume Ventures Mumbai, IN Omnivore Mumbai IN 5 8 SoftBank Global DCVC San Francisco, CA

Canary Sao Paolo, BR Global Founders Capital Europe 6 IM Calcutta Innovation Park Calcutta, IN 7 Sofinnova Partners Menlo Park, CA InnovaMemphis Memphis, Tennessee

InnoVen Capital Mumbai, India Tencent Holdings Shenzhen, China 7 GGV Capital Menlo Park, CA 6 CPT Capital London, UK

Bpifrance France *by number of companies invested in, including follow-ons

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 62 M & A FARMTECH EXITS Farm Tech M&A Insights from

Following a very strong year for digital and precision ag gaining access to the customer through partnerships M&A in 2018, there was a slight decrease in activity in without having to organically build expensive distribution 2019. We observed nearly 20 acquisition announcements channels. A downside to these partnerships has been a during the year across digital farm management, advanced loss of independence and technology identity for agtech breeding and microbiology, precision equipment and companies. Further, early stage companies become mechanization, and other agriculture technologies. dependent on their partners’ supply chains, which limits Precision and equipment companies, notably Raven and future market interest from potential buyers in a CNH, were the most active acquirers in 2019, purchasing competitive business sales process. This is not necessarily both precision hardware and digital software platforms. true for all partnerships, but some of these limiting factors Meanwhile, Syngenta continued its global emphasis on could be part of the drivers for consolidation in the future. agtech through the purchase of Cropio. Over half of 2019’s Verdant anticipates an increase in M&A activity in 2020 M&A deals included a US-based seller and nearly 40% driven by strategic companies’ continued demand for were companies involved in digital farm management. technological innovation that can only be acquired; There was growth in the announcement of partnerships in continued pressure on startups from investors to make lieu of acquisitions. We’ve still noticed inquiries from returns; and a reduction in partnership structures that are strategic input providers, equipment manufacturers, and undervaluing the technology companies and lacking retail distributors aggressively seeking solutions to both exclusivity and desired control for strategics. We expect an improve internal operations and grow markets with a uptick in deal volume for companies with resource comprehensive technological offering for customers, but efficiency technologies (water, energy, and sustainability), the agtech landscape remains competitive and the large commodity monitoring and handling technology (identify field of technology companies makes the identification preservation and specialty ingredients), and profitability and selection of acquisition targets challenging for big optimization technology. The current year is off to a strong companies. start with several deal announcements, which we foresee as an indication of greater consolidation in 2020. Meanwhile, technology companies have benefited by

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 64 FARMTECH EXITS Farm Tech M&A and Exits | 2019

Target Target Country Acquirer Technology Est. Price Select Investors AgSync, Inc. USA Raven Industries Farm Management SW $7m Multiform Harvest USA Ostara Animal – Manure Tech Foundation Capital, Chrysalix VC, Purfresh USA Wheatsheaf Group Midstream Tech Chilton Investments First Pass Technologies Canada Whipcord Farm Management SW IntelliFarms USA Ag Growth International Farm Management SW Midas Nursery Solutions USA TreeTown USA Farm Robotics & Automation Precision BioSciences USA IPO Ag Biotech – Gene Editing $145.4m venBio Partners, Arrowmark Partners Scan Aqua Norway Merck Animal Health Aquaculture Health Vertical Farm Mechanics USA Summit Harbor Holdings Novel Farming Systems Viewtrak Technologies Canada Reco Northern Alberta Digital Animal Agtech MPM Capital, Avalon Ventures, Aratana Therapeutics USA Elanco Animal Health Pet Therapeutics $245m Kansas Bioscience Authority Once Inc. USA Signify Animal AgTech Webstech Denmark TeleSense Sensing & IoT iLOX Germany Signify Animal AgTech Veterinary Insights UK Carus Animal Health Animal AgTech

Medi-Productions United Kingdom Carus Animal Health Digital Animal Agtech IDT (Animal Health Business) Germany Ceva Santé Animale Animal Pharma Atlas Team USA Deveron UAS Corp. Farm Management SW

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 65 FARMTECH EXITS Farm Tech M&A and Exits | 2019

Target Target Country Acquirer Technology Est. Price Select Investors Investissement Quebec, Infu Capital, Desjardins-Innovatech, Prevtec Microbia Canada Elanco Animal Health Animal Biotech $59.9m Telesystem Osprey Biotechnics USA Phibro Animal Health Animal Biotech AgDNA Australia CNH Industrial Farm Management SW The Cropio Group Ukraine Syngenta Farm Management SW Pro Farm Technologies Finland Marrone Bio Innovations Ag Biotech $31.8m Animal Consulting Enterprises Australia Apiam Animal Health Animal $16m DOT Technology Corporation USA Raven Industries, Inc. Robotics Monsanto Growth Ventures, Koch Biological Caixa Capital, Middleland Plant Response Biotech USA Solutions Advanced Breeding Capital, Novozymes Smart Ag USA Raven Industries, Inc. Automation Stine Seed Inc. McRock Capital, Export Decisive Farming Canada Telus Farm Management SW Development Canada, VA Angels CNH Industrial Geoprospectors Austria (AGXTEND) Sensing & IoT CNH Industrial Vaki (Pentair) Iceland Merck Animal Health Aquaculture sensing Technology Development Fund AgSense (49%) USA Valmont Farm Management SW $42m CropMetrics USA CropX Farm Management SW Invest Nebraska Greenbook USA AgWorld Farm Management SW

Affinity Management Canada Ag Growth International Farm Management SW

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 66 FARMTECH EXITS Select FoodTech M&A | 2019*

Target Target Country Acquirer Technology Est. Price Select Investors Caviar USA DoorDash (from Square) Restaurant Marketplace 410.00 Bite Squad USA Waitr Restaurant Marketplace 321.00 Proseal USA JBT Midstream Machinery for Packaging 246.15 Zomato (UAE) AUE Talabat.com Restaurant Marketplace 195.66 Graze UK Unilever eGrocer 170.45 Bookatable UK Groupe Michelin Restaurant Tech 161.94 Foody Vietnam Delivery Hero Restaurant Tech 69.45 PizzaPortal Poland Glovo Cloud Retail Tech 68.63 Delivery Hero Resy USA American Express Restaurant Tech 51.07 SinglePlatform USA TripAdvisor Restaurant Technology 46.19

Purfresh USA Wheatsheaf Group Midstream Tech (freshness) 41.71 Tessenderlo Kerley

Restaurant Magic USA Par Technology Restaurant Technology 38.00

iKentoo USA Lightspeed POS Restaurant Tech (POS) 36.66

Good Uncle USA Aramark Restaurant Marketplace 33.85

Flyt (Payment App) UK Just Eat Holding Restaurant Tech (fintech) 26.75

AVA USA Koninklijke DSM Food personalization 10.68

Drync Bridge Beverage Retail Tech 3.52 USA City Pantry UK Just Eat Holding Online Catering 17.72 QVentures *data from Pitchbook BinWise USA BlueCart Restaurant Tech 10.37 AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 67 WHAT IS AGRIFOOD TECH? What is Agri-FoodTech?

Agrifood tech is the small but growing segment of the startup health and sugar consumption, opaque supply chains and and venture capital universe that’s aiming to improve or distribution inefficiencies, food safety and traceability, farm disrupt the global food and agriculture industry. efficiency and profitability, and unsustainable meat production. As with all industries, technology plays a key role in the operation of the agrifood sector, a $7.8 trillion industry, There are many ways to categorize agrifood tech startups responsible for feeding the planet and employing well over highlighting the complexity of the industry. See page 5 for 40% of the global population. The pace of innovation has not our categorization system, which we developed in kept up with other industries and today agriculture remains consultation with venture capitalists, entrepreneurs, and the least digitized of all major industries, according to other industry experts. McKinsey. The industrial agrifood sector of today is also largely inefficient compared to other industries, with an increasing number of demands and constraints being placed on it. These pressures include a growing global population set to reach 9 billion by 2050; climate change and global warming; environmental degradation; changing consumer demands; limited natural resources; food waste; consumer health issues and chronic disease. The need for agrifood tech innovation is greater than ever. This creates many opportunities for entrepreneurs and technologists to disrupt the industry and create new efficiencies at various points in the supply chain. Broadly speaking, agrifood tech startups are primarily aiming to solve the following challenges: food waste, Co2 emissions, chemical residues and run-off, drought, labor shortages,

AGRI-FOODTECH FUNDING REPORT: YEAR REVIEW 2019 | AGFUNDER.COM 68 Are We Missing Your Data? Don’t forget to send it to us!

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