2023 was not a good year for the agtechstechnology startups focused on the agricultural sector. According to the specialized venture capital publication Pitchbook, last year there were 952 deals involving these types of ventures, the lowest number since 2017. These deals involved investments of US$7.1 billion, almost half of the US$13 billion reported in 2021, the best year in the history of this type of startups.

But there is one segment among them that is attracting investors: agtechs focused on precision farming solutions. These startups develop technology that helps agribusinesses increase their yield and profitability without using more land or resources. Compared to other areas of agtech, these startups performed relatively well in 2023 and, according to Pitchbook, could accelerate by combining two attributes of interest to venture capitalists: sustainability and generative artificial intelligence.

The most recent capital raising transactions among these ventures have occurred in four verticals:

Image analysis dronesaerial technology for monitoring and collecting data on crops and resource distribution, as well as for detecting diseases and pests.

Farm management software: marketplaces, platforms and software for labor recruitment, commerce and data analysis.

Field IoTInternet of things that facilitates crop management, weather, water use and pest management.

Robots and smart equipmentRobots and smart equipment: machinery that allows the automation of field work such as planting, irrigation, weed control and harvesting.