Nurturing, supporting, scaling – the UK start-up landscape

At REAP 2022 we will be unveiling the line-up of our much-anticipated Start-Up Showcase – seven exciting young companies succeed the 51 who have featured in the last eight REAPs. Showcase alumni include Breedr, Yagro, Small Robot Company, PBD Biotech, AgriSound and many more … click here to see ‘What Happened Next’.

REAP Start-Up Showcase attracts investment

Over the last three years, 14 of the start-ups appearing in previous REAP Showcases have collectively raised over £92M. But where is this money coming from and how does the UK compare to Europe when it comes to raising finance for growing agri-tech?

Early-stage ventures provide a vital engine of growth and innovation and early association with those ‘Who Could Make It Big’ is always a bonus. There are many that are keen to meet, help and support start-ups – from investors to potential partners and acquirers.

Some of these ventures will succeed, and many will fail, but their journeys provide crucial insights into the likely innovations on farms in the future.

A recent report by Forward Fooding reveals that 2020 saw the creation of a massive 709 start-ups, (second only behind the US with 1,924). Vertical farming companies and those from the plant-based meat sector top the charts as compared with Europe, but farm management and precision farming companies also featured strongly.

The amount of money flowing into these businesses is significant and they are good at raising money – in the last decade an impressive €5.1 bn has been raised by agri-food start-ups.

But here is the thing…

Of the investment into the sector in 2020, 63% came from overseas investors. And there is more overseas money to come…

Recently, Agri-TechE has been working with the Department for International Trade Venture Capital Unit to help identify UK agri-tech companies ready for more significant investments – in the range of £5M to £100M. This finance is being sourced from international investors keen to invest in one of the most innovative and vibrant global agri-tech ecosystems.

The goal of this inward investment is to ensure that the value creation resulting from the R&D and company formation leads to real value capture and that companies are supported to scale-up and thrive where they were founded.

All great news…

The Forward Fooding report highlights the numerous UK-based accelerators. The Agri-TechE network has no shortage of supportive and nurturing incubators, together with increasingly wise CEOs who have successfully exited their business and are ready to invest and support again.

An enabling, and world-leading environment for start-ups to thrive.

The rest of the world is looking – and investing – with great interest into UK-grown companies. We need to make sure that continues and that start-ups are supported to look global from the outset for their fund-raising.

Click here to be among the first meet the REAP 2022 Start-Up Showcase companies.