Finistere Discusses Major AgTech Trends in TechCrunch Article
In a recent article in TechCrunch, Finistere general partners Spencer Maughan and Arama Kukutai review major industry trends affecting agtech venture investing. Finistere sees continued growth in data-driven agriculture that leverages developments in sensors, imagery, and AI. Automation will begin to more effectively address labor shortages. Innovation in biology and chemistry will continue to improve yields and reduce costs to support farmers operating in a low-margin environment. Read the article to explore our views on these themes as well as how shifting market dynamic among ag majors may change farming.
Looking ahead, 2018 will see much-anticipated endgames, with $200 billion worth of transactions driving consolidation of the Big 6. Specifically, Dow/DuPont and Bayer/Monsanto are under the microscope, but largely expected to conclude. Nutrien has emerged from the merger of Potash and Agrium, and ADM renewed its bid for Bunge, likely to also attract Glencore to an M&A fight. It is anyone’s guess how long it will take these new organizations to find their feet, but with more than nine in 10 exits driven by M&A, many startup CEOs and their investors will be watching this space with intense interest, and we could see an uptick in acquisition and strategic deal making next year.