SproutX featured in Startup Genome 2022 Report as a key player in the Australian Agri/foodtech ecosystem
It’s not news that there is a clear need for innovation given the rapidly growing global population, disparity in access to food, soil degradation and greenhouse gas emissions. The urgency for innovative solutions became even more profound with COVID-19 pandemic, spiraling fertilizer costs, supply chain disruption, and recent geopolitical events. (For those outside the agri/food space, have you noticed that 1kg of broccoli at Coles is $9 at the moment? 🥦💸). Solution seekers across the world are filling the gap to feed the world and improve the sustainability of our agricultural systems through initiatives such as crop gene modifications, revamping logistics, or tapping into the plant-based food space and many of them need support in terms of access to market, communities and capital.
Cue Startup Genome, the world-leading policy advisory and research organisation for public and private organisations committed to accelerating the success of their startup ecosystem. Their mission is to accelerate startup success and ecosystem performance everywhere by working together with global thought leaders and practitioners to define and execute robust policies and programs that drive lasting change.
“The Global Startup Ecosystem Report: Agtech & New Food Edition” by Startup Genome is a comprehensive report covering the landscape of Agtech & New Food tech ecosystems and players around the world. All with a focus on improving agricultural efficiency and sustainability, including field, sensors, drones, farm-management software, robotics, vertical farming, and more.
Ecosystems provide a collaborative pathway to global success for research and startups and Startup Genome found that Australia is lagging behind the rest of the world with Sydney’s ecosystem ranking at 21 while Melbourne’s ecosystem ranking below top 30 😥
Comparison of top Agtech and New Food Tech ecosystems with Australian (Sydney’s) ecosystem
(SproutX extract from pg. 19 of the report with a focus on Australian cities)
The report highlights the need for investment into and structuring of a strong Agtech ecosystem in Australia in order to catch up with the rest of the world. The majority of the Top 10 Global Accelerators and Incubators are in North America. Similarly, the majority of the Top 10 Venture Capital Firms and Investors are in North America. North America and Asia dominate the top 25 Agtech & New Food ranking, with 48% and 20% respectively. Europe has four ecosystems in the top 25, Oceania has two, and MENA one.
SproutX is proud to be the only still-running Agri/foodtech Accelerator & Incubator listed in the report.
We firmly stand by the call for greater agri/food tech ecosystem investment in Australia and are happy to see some recent attention towards the sector from awareness around climate change, alertness from food security/ supply chain issues from the pandemic, and very recently positive indicators on policies movement.
(Map of the Agtech & New Food Ecosystems extracted from pg.25 of the report)
The report highlights some growth areas of opportunity:
Food delivery and logistics
The coronavirus pandemic has shifted consumer behavior which resulted in rapid growth in the food delivery and logistics sub-sector. In 2021, delivery accounted for 11% of the $1.6 billion invested in Agtech & New Food, up from just 2% of total dollar amount invested in the sub-sector in 2017 and 6% in 2020.
Non-cultivated alternatives to meat
Industrial animal agriculture is responsible for 20% of global emissions. The amount invested in non-cultivated alternative meats overtook cultivated meat at the seed stage for the first time in 2021, this suggests an increasing early stage innovation in the field. In 2021 investments in alternate proteins grew 60%.
Robotics
Example: A Denver-based startup creates robots that perform labor-intensive agricultural tasks, this startup has raised $28.6 million to date.
👀 Ambit Robotics, Growave, Monash Robotic Arm (SpX A22 cohort)
Finance
Traditional agricultural supply chain structures and related financing are being revolutionised. Examples are Agrolend, which provides accessible credit for small-scale farmers, and Pago Rural, which is an inclusive lending and payment platform for producers and distributors.
👀 Fresh Supply Co, Agtuary (raising 👋), Mobble, Tie Up Farming, Agrohub (SpX A22)
What can be done here in Australia?
“Startup Genome works with forward-looking governments and private sector organisations to accelerate the success of their startup ecosystems. Successful ecosystems fuel the growth of more startups, sustainable economic growth, and job growth. There is a crisis call for collaboration. As with the transition to renewable energy currently underway, the global protein transition will require both the private and public sector to play leading roles. History shows us, time and again, the synergistic effects that public and private R&D can have on scientific and social progress, as well as the economy. When leveraged with private sector investments, public investments have stimulated new markets, jobs, and solutions — from radar and information technology to clean energy and vaccines. When paired with private investments in R&D, publicly funded innovation — in the form of increased government investment in alternative protein R&D — can have a multiplier effect on our collective food future. It can simultaneously help spur economic growth, reduce environmental harm, and deliver broad and long-lasting public benefits. Together, public and private investments can lead to more choices for consumers, climate-forward job creation, a stronger economy, and a more resilient food supply.”
We are pleased to be smack in the center of the agri/foodtech ecosystem and in a strong position to build a pathway needed to link up all sub-community groups in the country. SproutX has delivered strong results through our newly funded pre-accelerator incubator (SpX A22 as our 1st cohort), accelerator program and corporate partnerships.
Do you have an agri/foodtech solution you want to commercialise or are you looking for market entry points, capital raise or access to the agri/food community?
No matter what stage or streams of agri/foodtech you are in, tap into the SproutX pipeline.
Together we will strengthen Australia’s agri/food identity while putting its agri/foodtech ecosystem on the global map.
Enrol today to the SproutX Business of Agriculture to kick start your journey into agtech!
