Venture Capital Invested Billions In Emerging Market Agri-Tech Startups In 2022 | OilPrice.com

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Even as global funding levels drop, agri-tech start-ups remain a key driver of investment in emerging markets as they work to make farming greener, more productive and more climate resilient.

- Mar 10, 2023, 3:00 PM CSTImproved supply chains enable smallholder farmers to increase market reach.Financial support and digital networks essential to building climate resilience.

Similarly, the number of agri-tech deals in emerging markets has increased in recent years. For example, the proportion of such deals in the Middle East rose from 1% in 2021 to 4% as of mid-2022, while Africa saw a rise from less than 1% to around 6% over the same period. With the scale of climate change-driven natural disasters increasing and the population of many emerging markets set to expand significantly, agri-tech start-ups are working to provide food security for the future by revitalising supply chains, tapping into artificial intelligence and machine learning, and providing resources to farmers to help them respond effectively to disasters such as drought or flooding.

A number of agri-tech firms are using these digital advances to improve supply chains, connecting farmers to both essential supplies and end consumers. Founded in 2017, Kenya’s Apollo Agriculture is behind the Agrix app, which uses soil and weather data to provide personalised seed and fertiliser recommendations to more than 170,000 farmers – nearly half of whom are women. In February the company received a $9.5m loan from the US International Development Finance Corporation to continue its expansion on the continent.

 

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