Guide for securing investments in 2025: Interview with Dr. David Buckeridge
The year 2021 marked a significant milestone in the agrifoodtech sector, with an unprecedented surge in investments driven by a strong Environmental, Social, and Governance (ESG) investment agenda. Dr. David Buckeridge, a longtime operator, investor, and advisor in agribusiness and life sciences, analyses this trend and its implications for the future of agrifoodtech.
The causes of this investment hype can be attributed to a global ESG investing boom, a macro-level recognition of the potential and necessity of sustainable food and agriculture investments, and investor urgency to meet institutional sustainability mandates. This alignment with ESG principles led to record capital inflows into agrifoodtech, labelling 2021 as "the year of ESG investing."
However, the consequences of this hype, as reflected in hindsight by Buckeridge, include overlooked details and risks amid the rush to invest, leading to a more cautious investment environment by 2025. Agrifoodtech startups now face a tougher fundraising landscape, requiring lessons learned from the boom-bust cycle. A shift toward more prudent capital raising strategies is evident as investors apply the lessons from the 2021 surge.
In the current investment environment, it takes longer to raise money compared to three years ago. Startups should research potential investors thoroughly to ensure they have an interest in the startup's offerings. A clear, concise pitch deck that conveys the startup's value proposition and unique selling proposition is crucial. Advisors can be beneficial during the fundraising process, especially for handling details where the startup lacks experience.
Dr. Buckeridge cautions against being "overly skeptical" about agrifoodtech moving forward, as these investments were made from pools of capital designated to achieve high returns, and with this comes risk. However, he emphasizes the need for agrifoodtech companies to align closely with ESG goals but also to manage investor expectations in a maturing market.
Experience is gathered in an increasingly variable climatic environment where fragile product benefits are easily exposed. Technology in agrifood sectors must work and be durable, often in field conditions, and even in controlled environment agriculture, there is a lot of variability of conditions. This underscores the importance of testing the pitch deck on various people to gather constructive feedback.
Large investment funds may not be suitable for early-stage startups due to their typical investment sizes. Startups should have an ambitious vision and show a clear path to achieving it. In today's investment environment, it is essential to stay positive and confident during the fundraising process.
Dr. Buckeridge will host investment pitches at this year's Focus on Finance event hosted by Agri-Tech-E on September 11, 2025, in Cambridge, UK. He is now the chair of the National Institute of Agricultural Botany in the UK.
[1] Buckeridge, D. (2023). The 2021 Agrifoodtech Investment Hype: Lessons Learned and Moving Forward. Agri-Tech-E Insights.
- In the evolving investment landscape, businesses and investors in the agrifoodtech sector should be mindful of the lessons learned from the 2021 investment hype, as it involves managing risks associated with sustainable investments, aligning with ESG goals, demonstrating a clear vision, and pursuing prudent capital-raising strategies.
- For startups in the agrifoodtech industry, securing investments in 2025 requires careful preparation, including thorough research into potential investors, a compelling pitch deck that clearly articulates the startup's value and unique selling propositions, and maintaining a positive and confident demeanor throughout the fundraising process.
