Increase in startups in agribusiness reflects maturity in the field

It's not every day that a technological revolution knocks on our door. But this is exactly what is happening with the most thriving sector of the Brazilian economy, agribusiness: we have achieved expressiveness in production and exports and have enormous growth potential thanks to the constant incorporation of new technologies.

It is a green and technological revolution that, because it is so new, it has not yet been established by what name it will be called. There are those who talk about Agriculture 4.0, smart farming, Precision Agriculture or Digital Agriculture, but the fact is that the digital revolution has arrived in the field, bringing with it a new wave of mechanization prepared for the imminent internet of things, capable of extracting from the fields an infinity of data and algorithms to analyze them. them – all in the name of increasing productivity and competitiveness.

Each of these aspects mentioned brings countless opportunities. Digitalization involves countless possibilities: the secret lies in modeling and data transmission technology to save water, electricity, disease prevention, with preventive application of soil treatments, among others, in addition to intangible efficiency, as in the case of remote data control (when the employee does not have to go to the plantation to check equipment).

It is not about creating all possible solutions to increase efficiency, but about platforms that bring together different solutions capable of providing insights to farmers in real time, in a form of management assisted by artificial intelligence.

And this is possible thanks to the work of startups specialized in agribusiness – the so-called Agtechs - a worldwide phenomenon. In the last two years, the total invested in agricultural startups more than doubled, reaching 6,9 billion dollars. Brazil alone today has more than 400 small companies, most of them less than two years old, offering solutions to farmers to encourage innovation in different areas of Brazil, with their respective production characteristics and level of development. 

This is because the growing search for innovation is not only a priority, but a necessity in a highly complex economic environment with increasing pressure from consumers, governments and regulators who demand more efficiency, control, traceability and sustainability.

Another point that has helped technology reach the countryside more quickly is the change in the culture of farmers, who are now more open to new things and the facilities introduced by digital systems. Greater acceptance of technology by farmers is the first point of this major advance in Agritechs. This has a direct impact on the growth of our segment.

To leverage Agritechs, in turn, startup accelerators work. These are companies that provide mentoring and capital in exchange for financial returns. Generally, accelerators provide consultancy on products, services or business plans and provide bridges with potential investors, positioning themselves as one of the most important factors in consolidating and expanding the operations of startups.

This combination has allowed the number of opportunities inside and outside the gates to multiply. The union of accelerators' expertise in business management and consultancy, with startups and potential investors allows for a co-creation process that allows for better integration with the industry.   

The signs of results are already there. In the consistency and diversity of technological solutions. The new green revolution points not only to increased productivity, but to increased quality and a leap in sustainability.