Israeli AgriFood Tech Investment Report (2014 - 2018)
Israel is one of the leading innovative agtech countries globally. The South African agriculture sector is no stranger to Israeli agtech, particularly water saving irrigation technology. This is evident in the large presence of companies such as Netafim in the country. The recent drought has emphasised the importance of water efficient agtech for the sector's sustainability.
AgFunder has recently published the first ever Israeli AgriFood Tech Investment Report (2014 - 2018). In this five-year review of Israeli agrifood tech startup investment activity between 2014 and 2018, they detail $759 million of investment across 278 deals. While the totals may appear low next to the $17bn invested in agrifood tech in 2018, for a country the size of the US state of New Jersey, these figures are impressive. There are many macro and micro reasons for this level of innovation, and the outsized traction Israeli startups get on the world stage, making it an important market to watch.
There is also a lot of local support for innovation including organizations like Start-Up Nation Central that are fostering innovation in a variety of industries. Because tech is a major export item, essential to the national economy especially in lieu of natural resources, the Israeli government invests in incubator programs and trials, in partnership with Israeli VCs, food corporates, academic institutions, and farmers.
Key insights from the report include:
- nearly $1 billion of exits across the supply chain
- a dominance in upstream technologies, particularly Farm Management Software, Sensing & IoT that raised $208m during the period.
- an active early-stage investment community, particularly the country's connected angel investor network
- 82% year-over-year growth in investment downstream, particularly retail technologies
- active strategic investment from global tech players and agribusinesses
Download the report at this link (click).