Garden Research: Weekly Recap #10

Some thoughts on why AgTech may be worth paying attention to, plus a recap of seed activity last week.

Been doing some thinking about what so-called “sleepy” markets might deserve attention as American priorities seem to be shifting. One I hope garners more attention, and capitalistically feel is ready for it, is AgTech.

Agriculture accounts for 5.6% of the U.S. economy, yet remains largely untouched by technological innovation and venture capital alike.

While capital floods into AI, CleanTech, FinTech, Consumer, etc., an opportunity may emerge soon in local agriculture enablement.

To me, the timing makes sense - supply chain disruptions, changing consumer preferences, and environmental pressures are forcing a fundamental shift in how we think about food production and distribution.

Market Dynamics

The agricultural sector faces critical challenges that create clear opportunities for innovation:

• Supply chain vulnerability is becoming impossible to ignore. 95% of agricultural businesses reported significant disruptions in 2021. The centralized nature of our food system, optimized for cost rather than resilience, is breaking under pressure.

• Consumer sentiment is shifting. 77% of consumers express concerns about industrial farming practices. Farm-to-table, regenerative agriculture and local models are becoming a market force driving real change in food distribution models.

• Health implications are driving behavior. Studies increasingly link industrial farming practices to chronic health issues, from antibiotic resistance to nutrient depletion in foods. Consumer awareness of these connections is accelerating the shift toward locally-sourced, sustainably-grown options.

• Regenerative agriculture is gaining momentum. Potentially driven by a massive uptick in podcasts, public discourse, and independent media focused on the public health epidemic that may be linked to our food system, regenerative agriculture is taking center stage as a potential mitigation method to both climate destruction and food quality. The market for regenerative agriculture products is projected to reach $23.7B by 2027.

• Climate impact is accelerating. Parts of Spain and Portugal lost 60-80% of their crops to drought in 2022. Labor shortages are worsening, input costs are rising, and industry consolidation is squeezing out small producers.

The Technology Stack

I’ve identified ten key solutions to pay attention to that address these market gaps and may enable the local farm model to proliferate, while also leaving room for industrial farming to become more efficient, resilient, and healthy.

1. Farm Management Software: Advanced platforms for yield optimization and resource management. Not just dashboards - complete operating systems for modern farming operations.

2. Alternative Agriculture Models: Vertical farming and aquaponics systems moving production closer to consumption. Bowery Farming's $2.3B valuation proves these models can scale.

3. Sustainable Inputs: Biofertilizers and eco-friendly alternatives reducing dependency on traditional chemical inputs. The market opportunity extends beyond just replacing current products - it's about creating entirely new input categories.

4. Climate-Resilient Agriculture: Drought-resistant crops and predictive analytics helping farmers adapt to changing conditions. Early implementations show 15-20% yield improvements with 30% less water usage.

5. Precision Agriculture: IoT and AI enabling real-time monitoring and management. The key isn't just data collection - it's automated decision-making at scale.

6. On-Farm Processing: Decentralized systems letting small producers capture more value locally. Initial deployments show 2-3x revenue improvements through vertical integration.

7. Labor Optimization & Robotics: Autonomous systems addressing labor shortages. Companies like Iron Ox are proving robotics can make local farming economically viable.

8. Digital Farmer Empowerment: Financial services, supply chain optimization, and health analytics platforms transforming farmers into data-driven operators.

9. Food Waste Reduction: AI-driven demand forecasting and upcycling solutions minimizing waste throughout the supply chain.

10. Consumer-Facing Platforms: Direct farm-to-consumer marketplaces and transparency tools building new distribution channels.

Market Size

The numbers are compelling. Agtech, valued at $9B in 2020, is projected to hit $22.5B by 2025 - a 20% CAGR. But that undersells the opportunity. Agriculture is a $1.1T industry in the U.S. alone. The total addressable market for technology enablement is massive.

Why This Remains Undervalued

The limited attention to local agriculture stems from fundamental misconceptions:

• Perceived scalability issues ignore how technology platforms can scale even when individual farms stay small.

• Historical bias toward industrial agriculture has created blind spots around local farming's potential.

• Market fragmentation is viewed as a barrier rather than an opportunity for aggregation platforms.

Looking Forward

Agriculture tech better enabling production (both local and large-scale) could result in a fundamental shift in food production and distribution. Consumer demand is shifting, environmental pressures are mounting, and enabling technologies are reaching maturity. Companies that successfully execute in this space will do more than generate returns - they'll reshape how we feed ourselves. These are the market transformations worth watching.

BTW - This week, there is a prime example of a company that raised seed funding aligning with this thesis… I listed them first in the “My Favorites” section

Last week, 44 companies raised Seed capital in the U.S. 🌱

Quick Stats 📈

• Total Funding: $164M

• Highest Round: $13M

• Lowest Round: $70k

• Average Round: $3.9M

Top Raisers 💰

Zest Health: Virtual care company specializing in personalized dermatology services for patients with inflammatory skin conditions such as psoriasis and eczema. Through their platform, patients can access a dedicated care team, receive individualized treatment plans, and engage in 24/7 messaging for ongoing support. Raised $13M in a round led by Roivant Sciences.

Pendulum Systems: AI-powered platform designed to enhance Sales and Operations Planning (S&OP) by enabling teams to interact more effectively with their data, processes, and overall supply chain landscape. Their generative planning platform provides accurate, intelligent outputs from across enterprise, supplier, and customer networks, allowing users to simulate and optimize decision-making across the entire supply chain. Raised $11M in a round led by Decisive Point and Lowercarbon Capital.

Starbridge: AI-driven platform designed to streamline procurement processes for businesses targeting state, local government, and education (SLED) sectors. By analyzing data such as historical purchase records, competitor contracts, and planned spending, the platform helps users prioritize accounts, scale personalized outreach, and automate proposal writing. Raised $10M in a round led by Owl Ventures.

Desteia: Logistics platform that provides end-to-end visibility for international shipments by extracting and enriching information from unstructured data found in clients' communication channels. Leveraging AI and machine learning, Desteia offers real-time tracking, item-level visibility, and advanced analytics to optimize supply chain operations. Their platform includes features such as risk management dashboards, intelligent alerting systems, and an AI-powered copilot to automate tasks and provide data-driven insights. Raised $8M in a round led by Nazca, Village Global, and Autotech Ventures.

Human Computer: Independent video game studio founded by industry veterans, dedicated to crafting narrative-driven gaming experiences that respect players’ time while pushing creative boundaries. The studio takes a principled stance on AI in game development, leveraging it as a tool for efficiency while maintaining a strong commitment to human-led creativity in storytelling, design, and artistic expression. Their approach ensures that AI enhances, rather than replaces, the artistry behind their games, reinforcing their belief that truly meaningful and immersive experiences stem from human ingenuity. Raised $7.8M from undisclosed investors who definitely know more about them than I do.

My Favorites 🕺

Old Salt Co-op - Raised $3.9M from undisclosed investors

Old Salt Co-op is a collective of Montana ranchers dedicated to building a regenerative supply chain for the local and regional food economy. By owning each stage of the process—from ranching to production to distribution—they ensure that more value returns directly to the land stewards, fostering a resilient, regional food system. Their operations include a processing plant, butcher shop, and two restaurants in Helena, Montana, providing customers with high-quality meat products that are deeply connected to the land and community.

Macrocycle - Raised $6.5M in a round led by Clean Energy Ventures

MacroCycle Technologies is addressing the critical issue of plastic waste, where less than 10% of plastics worldwide are effectively recycled, with the vast majority ending up in landfills or incinerated. Their pioneering zero-carbon, circular upcycling process transforms end-of-life plastics into virgin-grade PET and polyester resins, offering a sustainable alternative to traditional recycling methods. Leveraging proprietary cyclic macromolecule synthesis, MacroCycle’s technology enables the recovery of plastic and polyester waste with 80% less energy consumption than conventional processes. This breakthrough not only significantly reduces carbon emissions but also provides a scalable and economically viable solution to the global plastic crisis, helping industries transition toward a fully circular plastic economy.

Affineon Health - Raised $6M in a round led by Green Park & Golf Ventures

Affineon addresses the overwhelming administrative burden on healthcare providers caused by excessive inbox volume, particularly from laboratory results and prescription renewals, which can lead to physician burnout and delays in patient care. Their AI-powered platform streamlines inbox management by automatically triaging and processing lab results, distinguishing between normal and abnormal findings, and notifying patients accordingly, reducing inbox volume by 30-80%. The Labs Pro module further enhances efficiency by grouping lab results, performing risk calculations, suggesting next steps, and drafting patient communications, all integrated within the existing EHR workflow. By automating these time-consuming tasks, Affineon enables healthcare providers to focus more on patient care while reducing administrative fatigue.

PromptLayer - Raised $4.8M in a round led by ScOp Venture Capital

PromptLayer addresses the complexities of prompt engineering in AI development by providing a comprehensive platform that streamlines prompt management, evaluation, and observability. Their solution enables both technical and non-technical teams to visually edit, A/B test, and deploy prompts, facilitating collaboration across departments. By offering features such as version control, performance monitoring, and integration with existing workflows, PromptLayer empowers organizations to optimize their AI applications efficiently.

Trayd - Raised $4.5M in a round led by Suffolk Technologies

Trayd is a B2B construction payroll platform and back-office management system designed to provide same-day pay and streamline administrative tasks for commercial subcontractors. The platform offers features such as time-tracking, dynamic scheduling with geolocation-based clock-ins and clock-outs, automated payroll processing with support for various pay cycles, and real-time labor cost tracking. By integrating these functionalities, Trayd aims to enhance operational efficiency, reduce manual workload, and improve financial wellness for both subcontractors and their workforce.

Gaia - Raised $2.5M from undisclosed investors

Gaia offers an AI-powered, cloud-based platform designed to streamline school nutrition programs by integrating back-of-house and front-of-house operations. The platform provides tools for menu planning, procurement, OCR production records, point of sale, student profiles and accounts, customer portals, central kitchen management, equipment lifecycle tracking, staff management, advanced reporting, and an AI assistant. By offering a flexible and user-friendly solution, Gaia K-12 empowers school nutrition teams to efficiently manage their operations, save time, and enhance student participation in meal programs.

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You can find the full list of startups that raised seed capital last week linked here

Seeya next week!