Strategies for Securing Investment in 2025: Discussing with Dr. David Buckeridge
Fundraising in the Agri-Food Tech Sector: Navigating the Challenges
The year 2021 saw a significant surge in ESG (Environmental, Social, and Governance) investing in the food and agriculture industries, often referred to as "the year of ESG investing." This trend was driven by growing concerns over climate change's impact on global food systems, increasing consumer demand for sustainably produced food, and corporate commitments to environmental and social governance.
However, this investment cycle also highlighted several overlooked details and mistakes.
Economic Viability Underemphasized
While environmental and social goals were prioritized, the financial sustainability and economic realities for producers—especially farmers—were often neglected. This led to challenges in adoption due to affordability, lack of clear return on investment, and difficulty integrating new technologies at scale.
Operational Burdens on Producers
ESG investments sometimes failed to account for the increased costs and complexity borne by producers on the ground, risking stalled progress if solutions were idealistic rather than pragmatic.
Market Information Asymmetry and Product Homogeneity
Consumers faced uncertainty and risk in green food purchases because of inconsistent ESG information and high similarity among green products. This can undermine brand trust and reduce the effectiveness of ESG marketing.
Persistence of Systemic Social and Environmental Challenges
Even with increased sustainable sourcing efforts, challenges such as deforestation and social issues persisted in some regions, indicating incomplete risk management in ESG investment approaches.
Fundraising Tips for Startups
For startups navigating the fundraising landscape, it's essential to start early to account for longer timelines. Advisors can be beneficial during this process, especially for handling details where the startup may lack experience.
Startups should have an ambitious vision and show a clear path to achieving it. Pitch decks should be clear, concise, and convey the value proposition and unique selling proposition. Startups should test-drive their pitch decks on multiple people for constructive feedback.
Thoroughly research potential investors to ensure they have an interest in the startup's field. Startups should expect to be distracted from their business during fundraising and should ask for constructive feedback after every meeting.
Technology in agri-food industries must work and be durable, often in field conditions. Startups should identify clear value inflection points to increase certainty and reduce risk for investors.
Looking Ahead
Dr. David Buckeridge, a longtime operator, investor, and advisor in agribusiness and life sciences, will host investment pitches at the Focus on Finance event hosted by Agri-TechE on September 11, 2025, in Cambridge, UK. With his wealth of experience, Dr. Buckeridge is well-positioned to guide the sector towards a more sustainable and economically viable future.
[1] Climate change concerns prompting shifts [2] Rising consumer demand for sustainably produced food [3] ESG frameworks by food companies [4] Increasing evidence that ESG practices positively influence consumer purchase intentions [5] Market information asymmetry and product homogeneity
- To align their finance strategy with the current market trends, businesses in the agri-food tech sector need to consider the rising investor interest in ESG frameworks, given the increasing evidence that ESG practices can positively influence consumer purchase intentions.
- During the investment process, it's crucial for startups to tackle the challenge of market information asymmetry and product homogeneity, especially in terms of ESG, to establish brand trust and ensure the effectiveness of their marketing strategies.
