2018 Early-stage
Agtech Report
Data provided by
Credits & Contact
Finistere Ventures
ARAMA KUKUTAI Partner
INGRID FUNG Associate

finistere.com

Special thanks to:

DEAN TILYARD - SPROUT
SUSE REYNOLDS - ANGEL ASSOCIATION OF
NEW ZEALAND
SARAH NOLET - AGTHENTIC
KIRK HANEY - RADICLE GROWTH
REBECCA LINCOLN - RADICLE GROWTH
SHMUEL RAUSNITZ - START-UP NATION
CENTRAL
Introduction
3
Taxonomy & methodology
4
Market overview
5-6
Q&A: Kirk Haney & Dean Tilyard
7-8
Seed-stage survey data
9
Regional spotlight: Israel
11
Regional spotlight: Australia & New
Zealand
12
Regional spotlight: Canada
13
2018 Early-stage
Agtech Report
Contents
2
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Introduction
The last 10 years have seen remarkable growth in agtech investment. As agtech financings have grown, so have the number of
innovative new companies announcing their presence in this ecosystem. As our sector continues to mature, there is increasing
need for quality information on financing activity. After all, in both farming and investment, good decisions must be based on
quality data. This is why in 2017, Finistere Ventures partnered with PitchBook to curate a first-of-its-kind dataset that enabled clear
insights into financing activity and metrics in the agtech sector. The results of this effort culminated in the release of our AgTech
Investment Review.
While feedback on the report was largely positive, our team noted a noticeable gapa lack of insight into seed-stage investment
and a bias toward US financing data. At Finistere, a key feature of our firm is our global network of partners. We intentionally seek
investments from global centers of agtech excellence. And through our Farm2050 initiative with Innovation Endeavors, Finistere
has been bringing together leaders in agtech innovation from across the globe. As the global population rises, innovations that will
help feed us will come from all over the world. After all, agriculture is a global industry, and agtech innovation happens all over the
world.
Over the first half of 2018, the teams at Finistere and PitchBook worked hard to close the gaps in seed and geographic data.
Readers may note that the angel & seed totals included in this report are lower than what they may anticipate. Datapoints at the
earliest stages of the venture cycle are notoriously difficult to collect. Our intention with this report series is to build the strongest
agtech dataset possible, especially at the angel & seed stages. To do so, we ask for your help in contributing any angel- or seed
stage data you would feel comfortable sharing. Ultimately, this series is meant to help our community get the clearest picture
possible of our sector. We are excited to share the results of our work in this mid-year report, focused on providing insight into
early-stage financing activity in leading innovation geographies. This issue is the first of a two-part series looking at specific
regions. Israel, Canada and Australia & New Zealand are spotlighted here, and the next report will focus on South America and the
European Union. We hope both will provide valuable insight into global agtech financing and innovation.
Special thanks to the Finistere global network partners at Radicle Growth, Angel Association New Zealand, Sprout, AgThentic, and
Start-Up Nation Central. Without their generous contributions of time, insights, and data, this publication would not have been
possible. As we continue to grow this dataset, we invite you to read this report, and thank you for continuing to grow this dataset.
We hope that these efforts will benefit our sector as a whole in the years and months to come.
Arama Kukutai, Managing Partner, Finistere Ventures
If you are interested in sharing your data to the PitchBook platform, please do not hesitate to reach out to survey@pitchbook.
3
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Taxonomy & methodology
1. PitchBook venture data
PitchBook includes equity investments into
startup companies from an outside source.
Investment does not necessarily have to
be taken from an institutional investor. This
can include investment from individual
angel investors, angel groups, seed funds,
venture capital firms, corporate venture
firms and corporate investors. Investments
received as part of an accelerator program
are not included. However, if the accelerator
continues to invest in follow-on rounds,
those further financings are included.

Angel & seed: PitchBook defines
financings as angel rounds if there
are no PE or VC firms involved in
the company to date and we cannot
determine if any PE or VC firms are
participating. In addition, if there is a
press release that states the round is
an angel round, it is classified as such.
Finally, if a news story or press release
only mentions individuals making
investments in a financing, it is also
classified as angel. As for seed, when
the investors and/or press release state
that a round is a seed financing, or it is
for less than $500,000 and is the first
round as reported by a government
filing, it is classified as such. If angels are
the only investors, then a round is only
marked as seed if it is explicitly stated. It
should be noted that in order to better
reflect the agtech seed-stage market,
this report increased that round size
limit to $2 million or less. However,
some seed-stage rounds in agtech may
still not have been captured as of yet as
a consequence.
2. Finistere Ventures survey data
The survey for this report was conducted
by Finistere Ventures throughout spring
2018, utilizing Qualtrics for survey building.
Finistere reached out to select professionals
within its network in order to ensure the
audience was appropriate. The sample size
was accordingly small, n = 17, with individual
questions at times receiving only a handful
of responses. Consequently, only select
questions were included within the survey
data summary section.
Please note this report is intended as the
first in a two-part series that Finistere and
PitchBook are producing in collaboration
with other agtech players in order to create
a robust, useful dataset for the agtech
industry on the whole. This first report
focuses explicitly on early-stage venture
financing trends in agtech, and includes
a regional spotlight on Canada, Israel,
Australia and New Zealand; the next report
shall focus on the European Union and Latin
America in particular.
3. Contributing partner data

Start-Up Nation Central: The datasets
on Israeli agtech venture activity cover
the seed and early stages, with overall
methodologies similar to PitchBook's.

AgThentic: The data provided by
AgThentic covers venture investment
overall in agtech in Australia, similar in
methodology to PitchBook's venture
classifications.

Angel Association New Zealand, Sprout:
The scope of the data provided by
Young Company Finance was formal
early-stage investment in New Zealand,
analogous to PitchBook's early-stage
methodology.
4. Agtech taxonomy*

Plant science: The modification of existing
plants and organisms to improve plant
health and yield, including plant breeding,
development of novel traits, genetic
modification/editing, and more.

Crop protection & input management:
The development of products and
technologies that when applied
improve plant yield, including the
development of synthetic and
natural active ingredients, biologicals,
formulations, seed treatments, and
nutrient technologies to improve plant
or soil health and reduce other inputs.

Precision agriculture: The building of
software suites, data management
and analytics tools for improved
farm management, including the
measurement of crop inputs, soil,
moisture, weather, inventory, etc.,
typically within the realm of enterprise
suites with user-friendly mobile
capabilities.

Agriculture marketplace & fintech: Online
marketplaces for the trading, buying
and selling of agricultural goods, as
well as platforms for the management
of related financial transactions and
administration of business relationships.

Indoor agriculture: The production
of turnkey software and hardware
systems designed for the cultivation of
crops within buildings, often focused
on either residential or commercial
real estate markets, as well as related
services and building of infrastructure.

Sensors & farm equipment: Hardware
and software systems specifically
designed to monitor a range of
conditions, most frequently within close
proximity, plus equipment for farming,
with integrative capabilities for whole
platforms.

Imagery: Equipment, software and
hardware systems plus actual
manufacturing of drones and satellites
for aerial monitoring.

Animal technologies: Hardware and
software systems specifically designed
to enable management of livestock and
other farm animals in general, with use
cases ranging from monitoring of health
to more efficient harvesting of related
resources. In addition, technologies
aimed at improving formulation of
animal feed and medicines are also
included, ranging from veterinary drug
applications to the entire nutritional
spectrum.
*Note: This taxonomy was developed by Finistere in order
to better categorize and analyze the differing segments of
this sector.
4
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Market overview
Agtech as a whole is maturing in a short amount
of time, as more expertise and resources are
drawn to the category. Underlying technologies
are improving and milestones are being hit
more often and quicker than ever before. As
more solutions are introduced into the agtech
ecosystem, new technologies are building
on those advancements. At the same time,
investors, both specialists and generalists, are
gaining more understanding of what works in
this nascent market.
Compared to other sectors, however, the
agtech market is influenced heavily by what
happens at the angel & seed stages, as
opposed to the headline-grabbing numbers
more prevalent at the Series A and B stages.
This is because agtech innovation occurs
globally, and startups often rely on early-stage
funding from local communities. Angel & seed-
stage agtech funding continues apace across
the globe. 2017 marked another significant year
for the sector, logging $123.8 million worth of
financing across 108 angel & seed-stage rounds.
Angel deal value was down from its record
year in 2016 ($76.0 million in all), though seed-
stage investment, which will be emphasized
throughout this report, hit a record high last
year with $89.5 million. Moreover, the median
round size at the angel & seed stage is (so far)
above $1 million in 2018. Yearly median round
sizes have flirted with the million-dollar mark
before, but typical years settle somewhere in
the $600,000 to $900,000 range.
The two charts to the right show an exponential
pattern of deal activity; reported angel deal
flow increased more than sixfold between 2010
and 2016, while seed activity increased more
than fivefold between 2013 and 2017. To some
degree, deal flow at the angel stage eventually
spills into the seed stage, which has become
more institutionalized over the years.
That said, angel & seed activity differs
considerably when broken down by sector. The
crop protection & input management space
is set for a big year, and is well on pace to set
new highs in both count and value. The same
is potentially true for precision agriculture, as
well. The following page breaks down trends in
several subsectors, many of which saw record
activity levels in either 2016 or 2017.
22
12
86
27
0
10
20
30
40
50
60
70
80
90
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2013
2014
2015
2016
2017
2018*
Angel deal value ($M)
Seed deal value ($M)
Angel deal count
Seed deal count
$12.0$27.7$8.1$15.4$29.4$39.5$76.0$34.3$21.26
7
12
17
24
37
42
22
12
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Angel deal value ($M)
Angel deal count
$5.8$42.1$25.8$40.2$45.1$69.2$89.5$36.09
13
34
30
51
50
61
86
27
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed deal value ($M)
Seed deal count
$12.7Agtech VC deal flow by type
Angel deal flow
Seed deal flow
Source: PitchBook
*As of May 2018
Source: PitchBook
*As of May 2018
Source: PitchBook
*As of May 2018
5
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Animal tech activity
is rising. 18 angel &
seed rounds were
completed last year,
raising a combined
$21.3 million. Each of
the past four years has
seen at least 10 such
investments, and the
two raised this year
were worth $9.1 million
altogether.
$1.9$8.7$15.1$18.7$21.3$9.19
16
10
13
18
2
2013 2014 2015 2016 2017 2018*
Crop management and
input management
startups have taken in
nearly as much angel
& seed capital as the
sector received all of
last year. The push to
improve plant yields
has drawn significant
interest since 2012,
which recorded an
unusually high $21.7
million worth of
financing.
$15.6$25.0$12.8$35.9$24.6$24.112
15
23
23
21
14
2013 2014 2015 2016 2017 2018*
The precision ag
space continues to
be a popular haven
for angel & seed
investments. Like
imagery, precision ag
is a natural outpost
for angel investors
with backgrounds
in software, data
management and
analytic platforms in
other industries.
$5.5$10.4$20.8$24.8$26.7$14.48
22
22
28
28
9
2013 2014 2015 2016 2017 2018*
Despite plant sciences
representing the
agtech segment with
some of the most well-
known and profitable
exits and technologies,
it receives less
angel funding than
its counterparts.
This is likely due
to the complexity
of technology
development,
regulatory barriers,
and long development
timelines in this sector.
$1.1$1.3$1.1$15.3$8.1$5.41
2
3
5
4
3
2013 2014 2015 2016 2017 2018*
Both volume and value
in the indoor ag sector
took dives in 2016,
sandwiched between
much stronger years in
2015 and 2017. Indoor
ag is a nascent sector
within agtech, and
activity is expected
to trend higher as
consumer interest in
controlled environment
production and local
food systems continue
to rise.
$3.7$2.3$46.5$4.7$34.0$11.05
2
20
8
16
6
2013 2014 2015 2016 2017 2018*
Imagery startups
have received much
attention at the angel
& seed stage. Imagery
can take several forms,
from drones and
vehicles to body-worn
camera systems.
Because of its simple
solutions, imagery
startups attract broader
interest from angels
with backgrounds in
hardware and tech
generally.
$6.8$12.4$11.7$19.5$14.3$9.45
7
9
14
9
6
2013 2014 2015 2016 2017 2018*
Animal technology
Plant science
Crop protection & input management
Indoor agriculture
Precision agriculture
Imagery
Note: All the underlying data are classified as angel & seed venture activity, combined. All above charts indicate deal value as bars and volume with lines.
Source: PitchBook
*As of June 2018
Source: PitchBook
*As of June 2018
Source: PitchBook
*As of June 2018
Source: PitchBook
*As of June 2018
Source: PitchBook
*As of June 2018
Source: PitchBook
*As of June 2018
6
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
From a results perspective, what do you
expect to hear from founders when they
pitch to you? Have those goalposts changed
over the past few years as the industry itself
has matured?
Kirk: We always want to see a big vision
that's grounded in how it will be executed.
Saying your technology will increase crop
yields on a particular crop is too vague. We
prefer to hear, "We're going to change the
way you farm by integrating a new biological
system into your leafy greens acreage. This
technology will apply to every broadacre row
crop and every horticultural crop, and this is
how our platform is going to generate these
higher yields. We're going to start with leafy
greens and scale it up before moving on to
corn." Those are entrepreneurial visions out
Kirk Haney is Managing Partner of Radicle Growth, an Ag and
Food Tech acceleration fund focused on transforming the speed of
innovation in agriculture. Under Kirk's leadership, Radicle secured
top tier financial and corporate investors including Finistere
Ventures, $150M agtech fund, OurCrowd, $300M funding platform,
Bayer Crop Science and DuPont Pioneer.
to change the world, but still very grounded
and methodical in the approach. We like to see
some domain experience and some example
of the entrepreneur's success. If you grew up
on a corn farm, you'll likely have some insight
into how corn is grown and you'll come across
as credible. Or, conversely, if you worked
for a software company and built it up and
sold it, then you understand the process of
entrepreneurship at an early stage and you've
already had that experience of being successful.
The last thing, and arguably the most
important, is being coachable. We pass on
entrepreneurs all the time if they aren't. VCs are
not all-knowing, but when they give feedback,
how the entrepreneur processes that feedback
tells us whether they're coachable or not.
What early investors like to see when posing a
question is not only what the answer is but how
they approach answering the question. That
tells us a lot. Mike Maples at Floodgate Capital
did an analysis of his successful investments,
and 92% of them had a change in business plan
after he invested. Successful entrepreneurs
are taking cues from the market, which is very
important to reshaping their business models.
Take Granular, which was recently acquired
by Corteva for $300 million, as an example.
It started out as a soil-testing company and
turned into a farm management system prior
to acquisition. Climate Corp. was trying to do
weather forecasting for sporting events before
turning to agriculture. These aren't all dramatic
shifts, but the initial business plans shifted in
significantly.
Dean: We're looking for a clear understanding
of the problem, and if the individuals involved
have spent time trying to understand the
problem. A lot of New Zealand founders
have been close to the problems for a long
time, having grown up on farms or through
their business careers. Living in New Zealand,
your degree of separation from agriculture
is probably one degree. Understanding a
problem is the first step, but the next step is
internationalizing the solution, which requires
lots of support, not only from angels but
also from international sources of capital to
facilitate introductions to offshore markets.
New Zealand's focus at the moment is on
winsa few years ago it was getting deals done,
but that's no longer a metric of success for us.
We're now focusing on customer traction and
pushing through to exit, so we're really looking
for companies that are aligned to that. One
of the key maturity points has been around
capital and being honest about how much
an agtech company is going to need to meet
its goals. A lot goes into making a product
and getting it into a customer's hands before
getting paid for it. There's a real understanding
now of how long trials and demonstrations
takeyou need to do that multiple times and
there are ways you can speed things up, but it's
still longer than other sectors.
After the Climate Corp. acquisition several
years ago, you probably saw lots of angels
come in. Can you speak to the level of
sophistication you're seeing among angels
who stuck around and are investing in
today's market?
Kirk: Like anything, it depends on the group.
There are some great professional angel
investing networks like Tech Coast Angels and
A Q&A with seed investors Kirk Haney and Dean Tilyard
Kirk Haney
Dean Tilyard is Chief Executive of Sprout, a New Zealand based
start-up advisory and accelerator specializing in early stage agritech
investment. Dean has experience with multiple start-ups and
technologies and is a founding member of the New Zealand Angel
Association. He has founded an angel investment network and
two seed stage funds. He is a director of Levno, a leading provider
of remote monitoring in the dairy industry and chairman of Speirs
Nutritionals, a developer of omega-3 food ingredients.
Dean Tilyard
As part of our 2018 Early-stage Agtech Report, we
invited two prominent seed investors, Kirk Haney
and Dean Tilyard, to share their thoughts on the
agtech market globally and what they look for
in prospective investments. Kirk invests globally
out of his San Diego office, and Dean's focus is
on agtech opportunities headquartered in New
Zealand.
Agtech is a global ecosystem
7
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Silicon Valley Angels and many throughout the
country. There's also interest from generalist
investors who are paying attention to global
population growth, and the fact that people
want to know where their food is coming from
and that it is produced sustainably. The typical
angel network or incubator approach is to
create an 'ag and food' track, which is helpful
because the industry needs syndicate partners.
However, when these groups underwrite
agtech deals, they often don't have familiarity
with how farmers integrate new technologies
and the ecosystem and therefore do not truly
understand how to build a rational revenue
growth plan. Farmers don't buy products
in a digital way yet, so understanding the
importance of the dealer network is critical to
helping entrepreneurs build the right revenue
forecast. Most of the time, these angel-backed
deals are priced inappropriately and the
companies end up undercapitalized. 100% of
the deals we've done involved companies with
insufficient budgets to reach their milestones,
and 100% of the time we've had to double
their budgets. Entrepreneurs are notoriously
ambitious and positive and assume things
will go well. We always add a little cushion to
their budgets. Once you have proof of concept
in-hand for your technology, it takes three to six
months to raise your next round of financing,
and you need that runway in the bank.
Dean: There's a couple things to that in our
region, as well. One is that the New Zealand
investment community underestimates how
much capital will be required. We're more
calibrated to the capital we think we'll be able to
raise than the amount that's actually required.
Another point is that New Zealand companies
are pretty capital efficientcost structures
for personnel and equipment is lower in New
Zealand than it is elsewhere. That said, the
average angel round in New Zealand trends
higher than other regionsaround $800k here.
But because there isn't an abundance of follow-
on funding immediately available, that's still not
enough for many companies to make it to the
next milestone.
You don't really see the natural progression
here that you do elsewherea startup gets
its seed round followed by A, B and C rounds.
More often you see those companies going
back to their existing shareholders to ask for
early-growth capital. The challenge for those
New Zealand investors is having capacity to
keep writing those checks. Because you don't
always have that next-stage investor who might
be better connected to the market, you're not
necessarily getting validation going back to
those prior investors. That means that round
sizes aren't growing, which compounds the
problem of companies not getting enough
money.
Have expectations risen hand-in-hand with
valuations?
Kirk: Silicon Valley ag deals are priced like
any other Silicon Valley deal. They're priced
very aggressively out of the gate similar to
enterprise software deals, and bids go up
because Silicon Valley thinks the time-to-
market is the same as other industries. Eyeballs
are OK for certain segments, but that approach
doesn't work very well in ag if you can't show
acreage. Trials are signed in the off-season
and then you trial your technology during
the growing season. Once you have the data
in-hand, now you can go to market and raise
more capital and acquire more customers. This
is a two-year process. We try to help bridge that
gap through counter-season trials by taking
products to places like Brazil or New Zealand.
That costs more, but time is money.
Once you get outside the Valley, the strategy
and approach to commercialization are more
rational and this leads to rational valuations,
rational timelines and clear paths to capital
raising. The entrepreneurs are typically
better-versed in agriculture. You have larger
agricultural hubs, like the mid-west, Salinas,
Latin America, Australia, New Zealand and
Canada. You find entrepreneurs who have
grown up on farms and have domain expertise,
and they understand how long it takes to get
these technologies to market.
Dean: I think it's fair to say that New Zealand
valuations are lower. Companies that are able
to raise money from US investors are seeing
higher valuations than they would have gotten
otherwise, which is encouraging.
What are some conversations worth having
that aren't discussed enough, or haven't
been mentioned yet here?
Kirk: Here's one of the things that gets missed
across the board in the sector. 40% of our deal
flow is international, and I like to parallel Silicon
Valley's view around technology relative to
agtech. Silicon Valley is 50 years old, and it has
academics, entrepreneurs, VCs and acquirers
all within a 50-mile radius. It's fantastic, and
there's no other place like it in the world.
Agriculture is 10,000 years old. Agtech is global.
Acquirers and VCs are on different continents.
There is no Silicon Valley for agtech. Many of the
most prominent VCs in agtech aren't in Silicon
Valley. They're in San Diego, Israel, Chicago,
Boston, Los Angeles and New Zealand and new
ecosystems are popping up all over the world.
The other piece is the importance of the agtech
ecosystem, and really understanding the size
and scope of the problem and what it's going
to take to get that technology into the hands
of end-users. Agtech adoption within farms is
acceleratingnot as fast as other industries
because of biological constraints, but that's
starting to change. Retiring farmers are
handing the reins to younger generations, or to
corporate growers who are starting to embrace
technology more quickly. But if you're unable to
get your technology on to a farm somewhere
in the world quicklyto demonstrate that your
technology works during a growing season
it's going to be hard to get that next round of
financing. Identifying that gap is very important.
You can't just design a product in four months
and get a Series Ait just isn't going to happen
in this sector. Series A investors want to see
these products work on a farm, even if it's on
one acre. It's a global market and therefore a
global opportunity, and investors need to have
an ecosystem in place to get these technologies
adopted more quickly.
Dean: I agree that adoption rights around
technology aren't discussed enough. At the
moment, we would classify adoption rates
in New Zealand as being low. Adoption rates
of IoT and precision ag would probably be
closer to 10% rather than 50%. While we have
companies have a good understanding of the
problem, they're not necessarily putting as
much emphasis on the user interface and the
customer experience. That's contributing to
the slow uptake. When you see companies
coming through with forecasts and business
plans that have quick levels of adoption, there's
a natural question of what other companies
are doing differently. There needs to be
discussion in New Zealand around why the
situation is the way it is and where we can
move faster. The solutions need to make life
easier, not necessarily just adding yield through
a convoluted system.
8
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Seed-stage survey data
Qualitative assessment of the agtech market solicited from industry players
Note: This survey was conducted with the
intent to garner a qualitative assessment of the
market from our strong network of industry
participants, as we are still in the process of
improving industry datasets in collaboration
with PitchBook.
All seed-focused agtech funds surveyed
were either affiliated with an accelerator
or incubator, or were dedicated explicitly
to seed-stage investing. The majority were
focused on investing within the US, yet
overall geographies were varied, spanning
Europe, South America, Central America and
Southeast Asia.
55.6%
44.4%
Affiliated with accelerator
and/or incubator program
Dedicated seed-stage
investment group
Imagery
Sensor & farm equipment
Indoor agriculture
Agriculture marketplace &
fintech
Precision agriculture &
analytics
Crop protection & input
management
Plant science
Animal technologies
Other
19.1%
9.5%
14.3%
23.8%
9.5%
9.5%
4.8%
4.8% 4.8%
Imagery
Sensor & farm equipment
Indoor agriculture
Agriculture marketplace &
fintech
Precision agriculture &
analytics
Crop protection & input
management
Plant science
Animal technologies
Other
8.3%
8.3%
8.3%
16.7%
41.7%
In which agtech segments do you see the most deal flow?
In which segments are you most interested in investing and
why?
Cleantech was a clear majority focus, with a
couple responses indicating social impact was
an additional goal.
Overall, investment size and activity indicates
respondents are staying within typical
early-stage confines, with a preponderance
of convertible debt usage and check sizes
ranging within $250,000 and below.
Associated seed-stage valuations on average
were declared to be $2 million to $5 million
by a majority, with sparse commentary
indicating valuations have been at least flat
or trending upward, in line with feedback that
How would you classify your seed fund?
the amount of capital flowing into agtech has
also increased.
Interestingly, although precision agriculture
and sensor plus farm equipment were the top
sectors in terms of self-reported investment
focus plus observed deal flow, livestock
technology and aquaculture were noted as
other areas of potential interest, along with
supply chain analytics and infrastructure.
Less than $1 million
$1 million to $2 million
$2 million to $5 million
$5 million to $10 million
$10 million+
83.3%
16.7%
Over the last 12 months, the average seed-stage valuation in
agtech was:
Source: Finistere survey
Source: Finistere survey
Source: Finistere survey
Source: Finistere survey
9
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
BRINGING TOGETHER
LEADERS IN THE AGTECH
ECOSYSTEM TO
ACCELERATE WORLD
FOOD PRODUCTION
THROUGH
TECHNOLOGICAL
INNOVATION
FARM 2050 SUPPORT
INNOVATION PROCESS
Customer
access
Data
Land &
Trial support
Capital
Mentorship
Concept
Design
Prototype
Production
Testing & Validation
An ecosystem of partners resources
to help AgTech startups develop,
iterate and validate their vision
An initiative by
Late-stage values up, Series A stagnating
Median values by round types in Israeli agtech ($M)
Source: Start-Up Nation Finder
*As of May 2018
Regional spotlight: Israel
By Shmuel Rausnitz, Start-Up Nation Central
Seed and follow-on of increasingly higher
value have flowed to Israel's agtech sector
over the past several years. The $9 million
worth of seed investment raised by
four companies last quarter is the latest
manifestation of growing average values, at
a compound quarterly growth rate of 7%
since the beginning of 2014. Whether seed
investment activity in full-year 2018 will end
up resembling the year-end polarization of
2015 and 2016 or the middle-quarters-heavy
distribution of 2017, the trend portrays
growing investor confidence. As for the 18 B
roundseight of which were in the tens of
millionstheir average value is increasing
at a compound quarterly growth rate
of 34.7%. The trends indicate that young
agtech startups in Israel are growing more
compelling to investors, and a consistent
showing of startups that are further along
and have already received follow-on
investment are proving viable for ongoing
and greater financial bolstering.
Seed and follow-on funding in Israeli agtech
derives from a diversity of foreign and
Israeli investors. The 32 rounds in 2017 (18
seed and 14 A/B) included six foreign VCs
with offices in Israel, 32 foreign investors
operating only from abroad, and 10 Israeli
investment sources. As for the seven
investments in 1Q 2018 (four seed and three
A/B), 17 foreign investors and five Israeli
sources participatedsome more than once.
These figures portray a considerable amount
of international partnerships; foreign
investors are having no trouble identifying
deal flow in Israeli agtech and coordinating
partnerships with local VCs or independently
with the companies.
The technology foci of all equity-based
investment rounds in Israeli agtech over
the past two years have been precision
agriculture, imagery, and sensors. The total
value of investments in such technologies
in 2017 increased 88% from the preceding
year, when precision ag was already leading
the other subsectors in investment value
and number of rounds. Specifically, smart
irrigation and pest management solutions
have proven most alluring for investors,
including in 1Q 2018. We also note rising
investor interest in Israeli plant science
and alternative proteinparticularly in
cultured meats and novel greens. The total
investment value of Israel's alternative
$0
$2
$4
$6
$8
$10
$12
2014
2015
2016
2017
2018 Q1
Seed
Series A
Series B
0
2
4
6
8
10
12
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014
2015
2016
2017
2018
$M
Undisclosed rounds
Rounds count
More seed capital heading to Israel
Israeli seed-stage activity in agtech
protein companies increased fifteenfold in
2017 and already saw new investments at
the beginning of this year. These subsectors
stand out among 14 that constitute the
diverse and competitive Israeli constituent of
global agtech innovation.
Source: Start-Up Nation Finder
*As of May 2018
11
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Regional spotlight:
Australia & New Zealand
Seed-stage deal value ($M)
Accelerator/incubator
deal value ($M)
Seed-stage # of investments
Accelerator/incubator
# of investments
1
18
6
0
5
10
15
20
25
30
35
40
45
$0
$5
$10
$15
$20
$25
2010
2011
2012
2013
2014
2015
2016
2017 2018*
Australia
Though Australia has always had strong
agriculture (innovative farmers amidst
tough soil and climatic conditions, strong
export-oriented economy, etc.), what has
changed in the last few years is the growth
of the agtech ecosystem, across sectors
and all levels. Government programs,
entrepreneurs, farmers, agribusinesses,
investors, and research organizations are
all increasingly aware of and participating in
this new industry. Access to capital remains
a challenge in some cases. That said, good
deals are getting funded, and the growing
accelerator/incubator space is helping to
fill this gap and de-risk deals for investors.
Finding effective ways to leverage the
know-how in the research community also
remains a challenge, but one that is actively
being faced.
There's increasing recognition that agtech,
while related to agriculture, is a separate
industry that has significant potential,
without constraints of production. Further,
Australia has existing strengths in research
that, when effectively combined with a
renewed focus on commercialization and
inclusion of farmers, has created a real
"boots on the ground" approach to agtech.
Solutions developed here are grounded in
the realities of farming and are often even
led by producers or industry veterans (rather
than tech entrepreneurs).
0%
5%
10%
15%
20%
25%
0
20
40
60
80
100
120
140
160
180
2012
2013
2014
2015
2016
2017
Agtech deals (#)
Total VC deals (#)
Agtech % of total VC (#)
Bouncing back
Australia seed and accelerator/incubator activity in agtech
Agtech a significant sector in New Zealand
New Zealand VC activity in agtech
New Zealand
New Zealand's agtech ecosystem is rapidly
mobilizing, with notable increases in
startup activity, investment and corporate
engagement. Contributing factors include
a robust educational network, as well
as interested corporations. Accelerators'
continued activity also helps boost the
vitality of the ecosystem. Entrepreneurs
and startups are leveraging New Zealand's
expertise in water management, pastoral
farming, animal health and food processing
with new opportunities developing,
including in high-value horticulture
production. Investor confidence, interest
and commitments are increasing, as viable
technologies continue to be produced.
The next stage is focusing on scaling,
transitioning startups to international
markets and accessing connected capital.
Key hurdles to overcome will be utilizing a
diaspora of agtech companies and talent
to raise awareness and increase access to
sources of capital, as funding of significant
scale continues to remain a barrier for startups
given the relative size of the ecosystem.
Source: AgThentic, PitchBook
*As of June 2018
Source: Angel Association New Zealand
*As of May 2018
By Sarah Nolet, AgThentic; Dean Tilyard, Sprout; and Suse Reynolds, Angel Association New Zealand
12
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
Regional spotlight: Canada
0
1
2
3
4
5
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2012
2013
2014
2015
2016
2017
2018*
Deal value ($M)
# of deals closed
Agtech seed activity has progressed in fits
and spurts over the years. The region lacks
the consistency of activity compared to its
neighbors in the US, which saw sustained
interest following the 2013 Climate Corp.
acquisition. Canada, by contrast, had its
two best years in 2011 and 2015, with
$17.8 million and $9.8 million invested,
respectively. The intervening years have all
recorded less than $3 million each in total
seed activity.

Despite its proximity to the US market and
its large swath of farmable land, the agtech
ecosystem within Canada is somewhat
disconnected from the global market.
The talent levels among entrepreneurs
and agtech investors is one factor, which
is reflected in the data. That said, the
Canadian agtech market is poised to
improve over time. Canada boasts a strong
grant funding ecosystem that should serve
as a foundation for stronger early-stage
investing going forward, including seed-
stage investments. Moreover, observers
point to promising innovations coming from
Canada, particularly in the food category.
More technical opportunities are fewer in
number, but that may also change as new
corporate entrants come to market and spur
activity. Talent is available in some respects,
though it hasn't translated into investment
opportunities in categories like precision
ag or imagery. Canada does have potential
to become a hub of fintech-related activity,
however, given the existing talent there in
software, communications and IT.

Given its considerable natural resources, the
Canadian ecosystem should also see a rise
in ancillary sectors like inputs and bioenergy.
The Canadian government has committed
large amounts of money into the broader
agricultural market, mostly through research
and development grants. Pivoting from R&D
spending to institutionalized investment has
been trickier, with much of the Canadian
R&D pipeline being underfunded for several
years. Capitalizing on that pipeline of
innovation remains to be seen, but as the
ecosystem is populated with more talent,
entrepreneurs and corporate entrants, the
data may begin to change, as well.
Canadian activity still subdued
Canadian VC activity in agtech
Company name
Investors
Deal size
Deal date
HQ
Smart Ag
Stine Seed Farm
$5.00M
June 14, 2018
Ames, IA, USA
Bear Flag Robotics
Liquid 2 Ventures, Trucks Venture Capital, True Ventures
$4.59M
May 16, 2018
Sunnyvale, CA, USA
FieldIn
Gal Ventures, Germin8 Ventures, Israel Innovation
Authority, Terra Venture Partners
$4.00M
January 10,
2018
Yokneam Illit, Israel
Aquabyte
Alliance Venture, Costanoa Ventures, New Enterprise
Associates, Princeton Alumni Entrepreneurs Fund
$3.50M
January 30,
2018
San Francisco, CA,
USA
Karnott
Leap Ventures, Partech Partners
$2.96M
May 30, 2018
Lille, France
Motorleaf
500 Startups Canada, BDC Capital, Desjardins Capital de
Risque, Fluxunit, Radicle, Real Ventures
$2.85M
May 15, 2018
Montreal, Canada
Beta Hatch
Cavallo Ventures, E8, Frontier Angel Fund, Keiretsu Capital,
Keiretsu Forum, NQV8
$2.10M
February 1,
2018
Seattle, WA, USA
AVA Technologies
Vanedge Capital
$1.75M
June 6, 2018
Vancouver, Canada
Gramophone
Info Edge
$1.00M
March 6, 2018
Indore, India
Select seed financings of agtech companies in 1H 2018
Source: PitchBook
*As of May 2018
Source: PitchBook
*As of June 2018
13
FINISTERE VENTURES 2018 EARLY-STAGE AGTECH REPORT
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