The agriculture industry is constantly working to improve practices that produce more efficient, profitable and sustainable farms. Many agriculture experts are committed to helping innovations that improve sustainability succeed in the market. These innovations require numerous levels of testing and trials to ensure the product works as intended. Farmers must see that these products that claim to improve sustainability will bring a return on investment and make a positive difference in their agribusinesses. The current trend for agriculture investment funding is low, and investors are becoming selective on which products they take on. AgFunder reports that investments are the lowest that they have been in 6 years as deals have become smaller and fewer. While funding is trending down, there are still opportunities for sustainable agriculture initiatives if they are properly prepared. Let’s explore some of the ways innovators can prepare for and attract investors.
Investor Interest
When thinking about attracting investors, innovators should form a passionate pitch that aligns with the interest of the investors. Bridging the gap between the interest of investors with the functionality of the product is crucial to attracting the right investor. Investors are more likely to take interest in a product that aligns with their values.
Technical Review
Any product expected to make it to commercialization should have a thorough technical review. There are agriculture experts that specialize in reviewing products and assisting in field studies. Since funding is down, investors need assurance that products are technically sound. This process involves product analysis and confirmation of technical positioning. Ensuring the technical soundness of products will help pave the way to funding.
Risk Assessment
Another area agriculture experts can assist sustainable agriculture innovators is in risk assessment. Through scientific studies, some risks can be reduced, which is attractive to investors. Investing will require some level of risk, but looking at the strengths and weaknesses of a product and mitigating some risks on the front end will be attractive to investors. This risk assessment by experts also includes projecting realistic growth potential and defining a technical development plan. Investors need to know where the company or product is headed from the beginning. This process will increase the funding opportunities significantly.
Final Thoughts
A novel idea is just the first step in developing a product that will eventually see commercialization, and a lot of effort is required before funding is acquired. Attaining funding can sometimes be difficult, especially in the current market. Even with this decrease, products that focus on sustainability have become and will continue to be integral in agriculture technologies. Innovators must be intentional about how they present their products to investors. Aligning their passionate pitch with investor interests will give innovators the upper hand. Investors also need to see that the products have been technically reviewed and assessed for risks by agriculture experts. Ultimately, considering these guidelines will help innovators on their path to funding.
