Editor’s Note: Beatriz Ponce de León is partner and CFO at GLOCAL, the Latin American agrifoodtech accelerator and investor, with a background in technology, investment and banking.
The views expressed in this guest commentary are the authors’ own and do not necessarily reflect those of AgFunderNews.
In recent years, the convergence of agrifoodtech and venture capital has prompted a critical question: Can early-stage innovation in food systems deliver both impact and returns? The answer is yes—but only with an approach adapted to the sector’s unique characteristics and regional realities.
Latin America offers a compelling case study. Rich in natural resources, responsible for approximately 18% of global agrifood exports, and possessing agricultural expertise, it holds vast potential to lead the world in sustainable food production. However, realizing this promise requires navigating a landscape that challenges traditional venture capital (VC) models.
Fragmented markets, lengthy sales cycles, and the requirement for in-field validation often hinder adoption, particularly among small and mid-sized farms with limited resources. Adoption patterns also vary by geography: In general, Brazil’s younger, tech-savvy farmers are more open to experimentation, while Argentina’s larger-scale producers show gradual uptake.
A few years ago, we embarked on a journey focusing on startup acceleration. As the firm evolved into early-stage venture investing, it became clear that standard VC frameworks struggled to deliver consistent success in agrifoodtech. Market volatility, extended adoption cycles, and fragmented value chains revealed a mismatch between investment structures and the operational realities on the ground.
In response, we developed the Clean AgriFoodTech Playbook, a strategic framework grounded in both investment experience and a comprehensive ecosystem research effort spanning Latin America. This included conversations with over 100 stakeholders—founders, farmers, corporations, and policymakers—as well as the review of more than 3,500 startup applications, portfolio performance data, and regional market dynamics.
Five core principles for agrifoodtech VC
- Time matters
Agrifoodtech is inherently a medium-to-long-term play. Biological cycles, regulatory environments, and infrastructure constraints all contribute to longer development and adoption timelines compared to traditional tech sectors. For venture capital to work in this space, capital must be patient, and fund structures need to accommodate delayed returns. Aligning timelines between investors and entrepreneurs isn’t just smart—it’s fundamental to unlocking the full potential of innovation in agriculture and food systems. - Capital alone isn’t enough
While funding is vital, it’s far from sufficient. Early-stage agrifoodtech startups often face complex go-to-market pathways, fragmented value chains, and significant regulatory hurdles. Success depends on more than a check—it requires targeted, strategic support. This includes milestone-based follow-on investments, active board participation, and access to networks that can accelerate validation and distribution. In sectors where commercialization is often hyper-local and operations-intensive, hands-on VC engagement becomes a competitive advantage. - Adoption is king
In agrifoodtech, adoption, particularly among small and medium producers, is often the hardest part. Farmers operate with tight margins and can’t afford unproven or overly complex tools. That’s why scalable, cost-efficient, and monetizable business models are critical. Product-market fit must include usability and economic viability for the end user. In other words, innovation must be grounded in reality. - Fit to sector matters
Not every agrifoodtech solution fits the venture capital model. Sub-sectors differ dramatically in capital needs, adoption cycles, and scalability potential. Some require years of R&D or large physical infrastructure, while others—like asset-light B2B models—can scale faster and leaner. VCs must assess not just the problem being solved, but whether the pathway to growth aligns with fund economics. Selectivity and sector-fit discipline are essential to drive meaningful returns. - Exits look different in emerging markets
In Latin America and other emerging markets, traditional IPOs and SPACs (special-purpose acquisition companies) remain rare, and exit pathways often diverge from Silicon Valley norms. Liquidity events are more likely to come from strategic acquisitions, corporate partnerships, or secondary sales. Planning for this from the outset—by building relationships with corporates, aligning with regional M&A trends, and understanding local market constraints—can be the difference between a promising startup and a successful exit.
Four agrifoodtech archetypes for VC fit
This framework has led to the identification of four vertical archetypes that represent different levels of alignment with venture capital:
AgriCatalyst: These are fast-adoption, tech-driven business models designed for rapid integration into existing agricultural workflows. B2B SaaS platforms, AI-enabled agrifintech solutions, and lightweight digital tools are the dominant forces in this vertical. Their strengths lie in capital efficiency, speed to market, and clear ROI for end users. For example, Verqor, a platform providing credit access through AI-driven underwriting, exemplifies how scalable fintech tools can drive financial inclusion and productivity among underserved farmers. With shorter sales cycles and lower upfront friction, AgriCatalyst startups offer compelling opportunities for VC-backed growth and early validation..
AgriSteady Growth: This vertical includes high-impact solutions that scale gradually, often requiring long-term trust and ecosystem engagement. Startups here work at the intersection of data, agronomy, and user behavior. Platforms like Auravant, a digital agronomy tool that improves farm-level decision-making through precision data, demonstrate how patient, relationship-driven growth can deliver both environmental and financial returns. These ventures often thrive through partnerships with cooperatives, input providers, and agronomists, highlighting the importance of stakeholder alignment and sustained execution in achieving scale.
AgriBioscale: Biotech and biological input innovations, such as biofertilizers, biostimulants, and microbial technologies, fall into this category. These solutions have enormous global relevance but face scientific and regulatory complexity. Companies like Puna Bio, which leverages extremophiles from the Andes to create bioinputs for hostile soils, demonstrate how regionally sourced innovation can solve global agricultural challenges. These ventures require robust R&D, rigorous field validation, and a strategy to transcend local specificity. For investors, AgriBioscale offers high-upside potential but demands technical diligence and longer time horizons.
AgriHardtech: Hardware-intensive solutions like robotics, automation, IoT devices, and advanced sensors live here. These startups address labor shortages, precision agriculture, and environmental monitoring, but often encounter adoption challenges due to cost, infrastructure requirements, and training needs. High capital intensity and longer sales cycles make traditional VC funding challenging. As a result, successful players in AgriHardtech often rely on blended finance models, corporate alliances, or public-private partnerships to scale. While riskier upfront, the upside includes category-defining technologies that can reshape entire segments of the food systems.
The bigger picture
More broadly, the global food system is undergoing a paradigm shift. The challenge is no longer simply producing more food, but producing it better. Despite global overproduction, inefficiencies remain: over 30% of food is wasted, and environmental constraints are tightening. As populations age and consumption patterns change, the focus must turn to cost-efficient, climate-resilient, and equitable solutions.
For VCs exploring agrifoodtech, particularly in emerging markets, this means rethinking assumptions around speed, scale, and success. Investing in this sector is not about chasing hype, it’s about backing what matters: solutions that can sustainably feed the world, support farmers, and generate long-term value.
Success in the region depends on “glocal” strategies—solutions that are globally scalable but locally tailored—and on ecosystem engagement that includes corporate partnerships, development finance, and experienced local operators. For venture capital to thrive in this region, it must evolve to fit the local realities.
The Clean AgriFoodTech Playbook offers one roadmap, but the conversation is just beginning. As the food systems of the future take shape, venture capital plays a pivotal role. The key is knowing how, and where, to place the right bets.
