Farmer Imran stood confidently before the panel of venture capitalists, his pitch deck flawless, his vision crystal clear. He was offering an AI-powered precision farming solution, one that could transform smallholder agriculture across Africa. His slides showcased market potential, scalable technology, and a bold roadmap for execution.
But investors weren’t convinced. “How many farmers have used your prototype?” “What’s your current revenue?” “Who’s backing your supply chain?”
Imran’s answers were passionate but unconvincing. He had a game-changing solution but no traction, no proof that farmers were willing to adopt it, no early users to validate its impact. In Silicon Valley, disruptive ideas often got funded on vision alone. But here, in this room, investors wanted proof of demand, partnerships, and a revenue path. In this article, we’ll explore Agritech investment and what investors are looking out for across different climes.
What Investors Look for in Agri-Innovation Ventures
Agriculture remains one of Africa’s most promising sectors for innovation, yet securing investment in agritech is a different ball game compared to other tech industries. While the promise of technology-driven solutions in farming is undeniable, investors weigh their decisions based on a unique set of criteria, which include:
1. Traction Over Theoretical Potential
Many first-time agritech entrepreneurs, like Imran, focus on how revolutionary their ideas are. But investors, especially in emerging markets, prioritise traction. This means actual users, revenue streams, and clear proof that the solution addresses a real, scalable problem.
Unlike in Silicon Valley, where an idea alone can attract millions in funding, African investors are more risk-averse. They want to see adoption, partnerships with key stakeholders (such as cooperatives, government programs, or agribusinesses), and early revenue streams before committing capital.
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A striking example is AgriProtein, a once-promising startup that used black soldier flies to convert organic waste into animal feed. The company struggled despite raising $125 million in funding. While the idea was revolutionary, the company failed to establish a scalable and sustainable market presence, leading to financial troubles and a stalled expansion.
2. Market Validation and User Adoption
An agritech startup might claim to improve yields by 40% or reduce post-harvest losses by half, but if farmers aren’t willing to pay for it or struggle with adoption, the business isn’t viable. Investors seek evidence of market fit: pilot programs, testimonials, and early contracts that show real-world impact.
For instance, Hello Tractor, an “Uber for tractors” startup, initially struggled because it underestimated adoption barriers among smallholder farmers. Many lacked smartphone access or digital literacy. It wasn’t until Hello Tractor partnered with financial institutions and cooperatives that adoption increased. This shift in strategy helped the company scale effectively.
By contrast, Farmcrowdy, Nigeria’s first digital agriculture platform, initially gained traction by connecting urban investors with smallholder farmers. However, despite early success, the company eventually shut down its crowdfunding model due to financial sustainability issues, illustrating how traction alone isn’t enough without a solid business model.
3. Scalability and Distribution Channels
Having a great product is just the first step. Investors want to know how a startup plans to reach thousands, if not millions of farmers. Logistics, infrastructure, and accessibility play a crucial role in agritech success.
Many agritech businesses fail because they underestimate the complexity of rural distribution. Investors favour startups that have strong go-to-market strategies, leveraging existing networks such as cooperatives, financial institutions, and agri-fintech platforms.
For instance, Apollo Agriculture, which provides credit, farm inputs, and advisory services to farmers, scaled rapidly by leveraging mobile technology and partnerships with input suppliers. Its data-driven approach allowed it to reach over 100,000 farmers and secure over $40 million in funding.
Compare this to Zenvus, a Nigerian precision farming startup that developed smart soil sensors. Despite the innovative technology, adoption lagged because the pricing model didn’t match the financial realities of most smallholder farmers. Without a sustainable distribution and pricing strategy, growth remained stagnant.
4. Revenue Models that Make Sense
A great product that farmers can’t afford isn’t a viable business. Agritech startups need business models that align with the financial realities of their target customers. Some of the most successful agritech ventures offer:
- Subscription-based services (e.g., precision farming insights)
- Pay-as-you-go models (e.g., farm inputs on credit)
- Embedded finance (e.g., partnerships with microfinance institutions for affordable loans)
- B2B models (e.g., selling solutions to agribusinesses rather than individual farmers)
Investors want to see well-thought-out monetization strategies that ensure sustainability and long-term profitability.
A successful example is M-KOPA, a company that initially offered pay-as-you-go solar energy solutions but later expanded into agritech financing. By using its existing fintech infrastructure, M-KOPA enabled farmers to afford equipment through installment payments, solving affordability barriers while maintaining profitability.
5. Strong Partnerships and Ecosystem Fit
No agritech startup operates in isolation. Investors favour startups that collaborate with established players, whether input suppliers, government programs, off-takers, or financial institutions. Strong partnerships reduce the risk of the business and improve scalability.
For example, Pula, an insurance-focused agritech startup, succeeded by forming partnerships with governments, insurers, and agribusinesses to offer smallholder farmers affordable crop and livestock insurance. By securing institutional backing, Pula ensured demand before scaling, making it attractive to investors.
Key Takeaways for Agritech Entrepreneurs:
- Prove traction early—pilots, partnerships, and initial revenues matter.
- Validate market demand—early adopters, testimonials, and contracts increase credibility.
- Prioritise scalability—investors want to know how you’ll reach thousands or millions of users.
- Choose a viable revenue model—align pricing with farmers’ financial realities.
- Build strong partnerships—collaborate with established players to gain trust and market access.
Agritech is a high-impact sector, but without the right approach, even the most brilliant ideas can fail. Entrepreneurs who understand these investment priorities will have a higher chance of success, not just in securing funding, but in building solutions that truly transform agriculture in Africa and beyond.
