Late-stage agricultural technology contracts lose dominance in Asia-Pacific | Jobi Cool

Data Snapshot is a regular AFN feature that analyzes agritech market investment information from our parent company, AgFunder.

Click here for more research from AgFunder and sign up for our newsletters to receive notifications of new research reports.

Agricultural technology investment in Asia-Pacific grew exponentially in 2021, surpassing $15 billion, according to AgFunder’s Asia-Pacific AgriFoodTech Investment Report 2022.

The number of offers at all levels increased to a total of 363 in total. Agritech in Asia-Pacific is similar to Africa in that early-stage financing dominates deals.

However, the number of late-stage deals in Asia-Pacific increased significantly by more than 30% in 2021, compared to early stages and growth stages.

While growth-stage deals increased (22%), early-stage activity was muted with just a 6% year-over-year increase in deals. The median deal value also rose, a factor that led to an increase in total investment in 2021 for the region.

Source: Asia-Pacific AgriFoodTech Investment Report 2022

Late-stage Asia-Pacific deals by the numbers

The number of late-stage deals in 2021 increased by 42% to $65 million, compared to $45.7 million in 2020. Early-stage deals, on the other hand, barely increased: $1.59 million in 2021 compared to $1.4 million in 2020.

By 2022, the late stage is losing some of its edge. For the first time in three years, the median value of late-stage deals has fallen — to $56.2 million in the first quarter of 2022.

This is likely due to the decline in investment in agricultural technology in China, where companies were leading at all levels of financing except for seeds. Investments in the country had skyrocketed due to e-grocery investments. The party is now struggling to stay afloat.

Take Series D 2021 investments, for example:

Investments by stage (focus on late stages)

Chinese e-commerce app Dingdong Maicai secured $70 million from Chinese boutique investment bank Cygnus Equity. The following month, it raised another $330 million in Series D funding, this time led by SoftBank’s Vision Fund.

Grocery app Xingsheng Youxuan, raised $2 billion in a round led by Sequoia Capital China.

Nice Tuan landed $750 million in a round led by tech giant Alibaba and Internet investment firm DST Global. Nice Tuan has since cut operations in some underperforming areas and laid off about 80% of its workforce.

Source link