Key Takeaways
- The first AgTech investment trend is Profitability.
- Controlled environment agriculture (CEA) is out unless it’s proven profitable.
- Biologics, automation, and regenerative agriculture are attracting capital.
- Startups must demonstrate commercial ROI—especially for growers.
- AI is expected, not a differentiator.
AgTech Investment Trends in 2025: What’s Hot and What’s Not
The question “Is AgTech still fundable?” looms large in 2025. According to Chris Rawley, CEO of Harvest Returns, the answer is yes—but investors are being more selective.
Being Profitable Or A Clear Path To Profitability
Speaking during an iGrow Network session, Rawley outlined how AgTech startup fundability now hinges on profitability and de-risked business models. “Growth alone isn’t enough anymore,” he explained. “You need to show how your company will be profitable and deliver measurable ROI.”
What’s Not Hot: CEA Face Intense Scrutiny After Losses
CEA companies, once darlings of the sector, now face skepticism. “We’ve seen billions lost in indoor farming,” Rawley said. “The model has to work, and it has to work profitably.” That doesn’t mean CEA is dead—but fundability now depends on operational efficiency, low energy costs, and proven unit economics.
What’s Hot: Biologics, Regen Ag & Precision Ag
Meanwhile, biologics and regenerative agriculture are gaining ground, especially where there’s overlap. Automation is also a standout sector due to labor shortages.
“Anything that improves productivity or reduces labor in ag production will continue to be investable,” he noted. However, just citing AI in your pitch won’t impress investors anymore. “It’s table stakes now,” Rawley said. “We’ve been investing in AI-enabled companies for years.”
AgTech Investment Trends Takeaways
For AgTech startup fundability, founders must demonstrate a solid ROI, particularly for farmers. “Three-to-one ROI is the benchmark,” Rawley emphasized. “If a grower spends $1, they should make $3.”
Read our previous editions on what makes an AgTech startup fundable in 2025 and red flags to avoid in 2025.
🟢 Watch the full webinar with Chris Rawley.
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