Agritech Enters the Age of Selectivity

After years of marked decline — 51.7 billion in 2021, 30.5 billion in 2022, 15.6 billion in 2023, according to the venture capital firm AgFunder— agtech has finally begun to show signs of recovery in 2024. With 16 billion dollars raised, the sector records its first increase since the start of the downturn, a sign of renewed investor interest in the most mature agricultural technologies and already proven models. Since the beginning of 2025, the trend has been confirmed: transactions are on the rise again and solutions related to water optimization, robotics, data, or agricultural genetics are gaining commercial traction. This proves that in a context where climate pressures, geopolitical tensions, and food security accelerate the demand for innovation, agtech is becoming a strategic pillar once again.

In the face of a market that has become buoyant but selective, one question dominates: which innovations to finance, at what stage, and with what potential to transform agricultural systems? Answering this is Louis d’Epenoux, Senior Associate at Telos Impact, an asset manager based in Brussels and Paris, who supports the rise of high-impact agricultural technology players.

What do you see as the investment trend in agribusiness, particularly agtech? What do you consider the key factors of the current dynamics and those you foresee for the coming months? 

After a notable low in 2022-2023, we have observed a fragile but real recovery in agtech financing in Europe over the past few quarters. The overall volume of investments remains below the peaks of 2021, but the quality of the projects has significantly improved: companies are refocusing on profitability, models are more capital-efficient, and valuations are becoming consistent with operational reality. We believe this recovery will continue, driven by innovations with a strong environmental impact (rational water management, biostimulants, precision agriculture, carbon monitoring solutions, etc.) and by increased demand from major agri-food players for credible decarbonization solutions.

The drivers are clear: the climate emergency (as seen in the 2025 drought in Southern Europe), the persistent volatility of input prices, and the evolving European regulatory landscape (Green Deal, CBAM, Farm to Fork) that favor the emergence of new technological solutions. We have a strong conviction that the European ecosystem (rich in agronomic know-how and deeptech excellence) has all the cards in hand to enable the emergence of agtech successes, even if the global geo-economic context requires us to be more vigilant about supply and distribution chains.

What profiles and business cases catch your attention? What kind of ticket do you put in? 

Stellar Impact is an evergreen fund that invests in growth companies in the European agritech  and foodtech sectors from Series A to Series C, with tickets ranging from one to five million euros, and follow-on capabilities to support companies in the long term. We favor teams that have already proven their product-market fit (around one million euros in revenue) with validated commercial traction. We remain agnostic about the model (SaaS, hardware, ingredients, etc.) as long as the value proposition is clear, the environmental impact measurable (reduction of inputs, water optimization, carbon sequestration), and the unit economics sustainable. We pay particular attention to companies that can integrate into existing chains, with compatibility with farmers and cooperatives being a key success factor.

Do falling rates and the return of free money change the game for you? For your investment strategy?

We do not believe in the “return of free money.” The recent period of monetary tightening has had the merit of cleaning up the market, bringing valuations back to more rational levels and refocusing entrepreneurs on operational profitability.

The gradual decline in rates is restoring fluidity to funding rounds and making some hybrid structures (venture debt, quasi-equity) attractive again, but it does not change our fundamental strategy.

Our priority remains the same: to invest in resilient models with a strong environmental impact and potential for industrialization at the European scale. In an still uncertain environment, the quality of execution, the strength of margins, and the clarity of the path to profitability take precedence over the cost of capital. In summary, the decline in rates is a tailwind, not a business model.