- Investment in agricultural gene editing surged by 206% year-on-year in the first half of 2024, reflecting renewed confidence in the sector and its potential to address critical challenges in global agriculture.
- The first half of 2024 saw as many deals in agricultural gene editing as the entire year of 2023, indicating growing investor interest and momentum within the industry.
- Innovations in gene-editing technologies, such as improved precision and reduced costs, have contributed to the increased investment, as these advancements make it more feasible to develop resilient and high-yield crops.
- While the Americas dominate the investment landscape, Europe is beginning to recognise the importance of gene editing, with initiatives like the AEGIS project supporting research and development in the field.
Agriculture-related gene editing startups have attracted over $2.7 billion in investments since 2012. Although the sector has faced challenges due to the recent downturn in venture capital, there are indications that 2024 may signal a turning point.
In the first half of 2024, these startups secured over $161 million across six deals, a significant improvement compared to the same period in 2023 when they raised approximately $46 million. While $40 million of the 2024 total was attributed to a single deal, even excluding this amount, the sector still experienced a 206% increase year-on-year.
Deal activity is also on the rise, with H1 2024 matching the total number of deals recorded for 2023. Furthermore, the investment figures for H1 2024 surpassed those of H1 2022 by 140%. Although it remains to be seen whether 2024 will surpass the $241 million raised in FY 2022, the signs are promising.
However, it is important to note that investment levels in agricultural gene editing startups are still significantly lower than pre-Covid levels, dating back to 2018. The only year with a lower figure than the present was 2017, when $58 million was raised following a peak of $374 million in 2016.
Looking at past years, deal activity has typically been evenly distributed between the first and second halves. For example, in 2022, H1 accounted for six out of 12 deals, while in 2021, six out of 14 deals occurred in H1, and in 2020, seven out of 15. This historical pattern suggests that 2024 will unlikely replicate the sharp intra-year decline observed in 2023.
The agricultural gene editing industry remains a promising area within agtech. Recent technological advancements have increased precision and reduced costs, accelerating research and improving the efficacy of gene-editing techniques. For example, Ohalo Genetics’ “boosted breeding” technology and Tropic’s GEiGS technology demonstrate the potential of gene editing to revolutionise crop development.
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While regulatory challenges persist, particularly in Europe, the Americas dominate the sector, accounting for 81.9% of the funding. European institutions are increasingly recognising the importance of gene editing, as evidenced by initiatives like the AEGIS project, which aims to map the entire planetary genome using ancient DNA fragments.
As 2024 progresses, the agricultural gene editing sector shows promising signs of recovery and continued growth, driven by innovation and a growing recognition of the technology’s potential to transform global agriculture.
