Brazil attracts 90% of Agtechs investments in Latin America

Brazil is at the forefront of agricultural digitization and increased investment in Agtechs, businesses that provide innovative and technology solutions at all levels of the rural production chain.

The number of agro startups grew by 40% between 2019 and 2021, from 1,124 to 1,574, according to the Radar Agtech study carried out by the consulting and research company Homo Ludens Research & Consulting, in partnership with Embrapa and the investment fund SP Ventures.

Through the Startups Internationalization Program, the Brazilian Trade and Investment Promotion Agency (ApexBrasil) has helped companies increase fundraising and establish operations abroad, ensuring greater relevance to the Brazilian business ecosystem.

In 2021, more than 14,500 companies participated in the initiatives promoted by the Agency, which supports around 1,600 agribusiness companies by providing extensive know-how for startups and consolidated companies alike.

One of the agtechs benefiting from ApexBrasil’s support is Raks, which produces intelligent systems to control irrigation, reducing the use of water and electrical resources in plantations.

Internationalization

In Fabiana Kuhn’s opinion, for a company to expand its foreign presence, the most important thing is to connect with the local market, understanding the behavior of the public and the regional characteristics. “An important step is to seek a support network that can help the company accelerate the learning curve and entry into the new market, based on the experiences already mapped so that it has a soft landing”, she concludes.

Software, applications, and systems, such as Raks, for example, can be adapted more easily, often requiring only a language update.

Sustainable technology

According to the partner at Homo Ludens Research & Consulting and co-coordinator of Radar Agtech Brasil, Luiz Ojima Sakuda, Brazilian Agtechs also help to consolidate the image of a more modern and sustainable agribusiness in other countries.

A study by the McKinsey consultancy shows that Brazilian farmers are among those who use digital resources the most for their transactions. Between 2019 and 2020, the percentage of farmers using some digital medium in their business rose from 36% to 46%, well ahead of North Americans and Europeans, with 31% and 22%, respectively.

Source: Notícias Agrícolas

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