What Segments does agtech consist of? PitchBook tracks 7,221 agtech startups across five segments within the industry's ecosystem. Here we take a deeper dive into each category and the unique pain-points it’s addressing. Ag biotech Generating significant interest from the VC community, Ag biotech genetically modifies living organisms for specific agricultural uses to reduce harmful environmental impacts of farming. These solutions make production cheaper and more efficient, allowing farmers to keep up with increased food demands. Biotechnology can engineer crops to withstand certain pests and diseases and is increasingly applied toward improving livestock feed and waste reduction. Companies in this space generate revenue through consulting and analysis, and by selling proprietary agricultural inputs to agronomists. Pivot bio, develops crops that can capture and metabolize nitrogen from the atmosphere, reducing the need for petrochemical fertilizers. The company is gaining notice within the regenerative agriculture space – a sustainable farming framework that helps to drive agtech investing. RELATED CONTENT To learn more about regenerative agriculture and emerging agtech opportunities, read our Q1 2022 Emerging Tech Research Report Agrifinance and e-commerce Agrifinance and e-commerce support agronomists and growers by providing them with financial services, including loans, insurance and risk management tools. Providers in this segment support local prospects by offering region-specific solutions. Online and ecommerce platforms connect customers with distributors, allowing farmers to avoid traditional distribution channels. Agrifinance companies monetize through SaaS models or charge fees through loan origination, whereas marketplace companies work through commission-based models. DeHaat’s app-based model connects distributors to delivery providers that transfer products after being sold, allowing farmers to buy or sell input, cutting out the middleman. Animal ag One of the more nascent agtech divisions, animal ag develops technology to analyze and optimize animal welfare, health and production. As this is the most labor-intensive agricultural segment, maximizing animal health is a core tenant of profitable farm operations. This space is broken into four categories, each with its own use case: Aquaculture, Livestock & Land Animal tech, Pollination tech and Insect Farming. Depending on the service, animal ag companies employ HaaS sensor technology models used to monitor herds or farm management sold through Saas. Food biotech firm Agronutris is dedicated to rearing and transforming insects into organic fertilizers and proteins for animal nutrition. This April, the company raised EUR 100 million of venture funding from Credit Agricole Nord Est, The Nutergia Group and four other investors. Indoor farming Indoor farming employs a process of growing food in vertical layers integrated into a controlled environment such as a building, shipping container or even a tunnel. This method allows for a reduction of year-round crop production, water, herbicides and pesticides, better control over growing conditions and reduced reliance on imports. Indoor farm operators utilize traditional hardware and service models and sell crops through grocery distributors and retail chains. Berlin-based company, Infarm, distributes in-store farming kits enabling cities to become self-sufficient in their food production while improving their environmental footprint of food. Precision ag Precision ag is a farm management methodology that uses robotics, sensors, unmanned ground vehicles and machinery to optimize field operation at the seeding, fertilizing and harvesting levels. IoT solutions use sensors to help farmers predict in-field and soil variabilities. Agricultural drones and other autonomous machines, which can get closer to plants without damage, gather aerial photos and seed fields. Companies in this segment sell a combination of hardware and software, encompassing traditional sales and service models. Startup Agritask, raised $26.0 million in Series B funding in Q1 2022, uses geospatial analytics and a network of sensors to provide growers with crop and soil health insights. The company's platform integrates an array of technologies, tools, and data sources into one brain that produces alerts and actionable insights, enabling farmers, companies and insurers to manage risk.