AgTech market enters a new phase in Brazil, says Itaú BBA.

The AgTech market in Brazil entered a new phase in 2025, marked by greater selectivity in investments and a growing focus on solutions with practical application and value generation in the field. A survey by Itaú BBA indicates that investments have been concentrated in technologies aimed at operational efficiency throughout the entire agribusiness chain — before, within, and after the farm gate.

In this context, investments in AgTechs totaled approximately R$ 562 million in 2025, distributed across 26 rounds, reflecting a more challenging macroeconomic environment and a more discerning stance from investors. Compared to 2024, there was a reduction in the volume invested and in the number of operations—with a decrease of approximately 50% in volume and 48% in rounds—a movement aligned with a broader trend in the startup market, marked by greater risk aversion and a prioritization of more efficient business models oriented towards value creation.

Throughout the year, an evolution in the investment profile was observed, with a greater concentration on solutions focused on automation, data use, and digital platforms, reinforcing the search for operational efficiency and greater predictability in agricultural activities. A more significant presence of venture capital funds also stands out, indicating greater sophistication in resource allocation.

According to the survey, the period indicates a phase change in the ecosystem, with resources being directed towards more mature theses and technologies with practical application in the field. Even in a more selective environment, the market maintained relevant operations and important technological advances, reinforcing the resilience and long-term potential of AgTechs in Brazil. This movement is also reflected in industry events, such as Agrishow, where the presence of solutions focused on operational efficiency and the use of data in the field is growing.

“What we are seeing is a phase change, with investors being more discerning and focusing on companies with a greater capacity to generate value. Agribusiness continues to be one of the main drivers of innovation in the country, with growing demand for technology and efficiency,” says Matheus Borella, leader in Strategy and Innovation in Agribusiness at Itaú BBA.

Segment analysis shows that, in terms of the number of funding rounds, most investments in AgTechs have been concentrated in the "Before the Farm Gate" segment, which encompasses products, services, and activities necessary for producers before the start of the harvest. Within this segment, there has been a greater focus on startups that employ nanotechnology and biotechnology in the development of inputs, reflecting the search for solutions capable of increasing productive returns with lower resource consumption, a trend already observed in 2024.

In the "Within the Farm Gate" segment—related to production and management during the harvest season—a significant volume of investment in telemetry and automation was observed, associated with the advancement of precision agriculture and the need for more predictive decisions in the field. The use of sensors and geolocation has enabled the generation of real-time data and improved decision-making by producers.

The "After the Farm Gate" segment, which involves the marketing and distribution of production, has focused investments on trading and processing platforms. With the increasing availability of standardized and auditable data, these platforms are now operating with greater pricing accuracy, better delivery predictability, and less information asymmetry—factors that are attracting greater investor interest.