Start-ups in the global business landscape are experiencing a surge of corporate venture capital (CVC) collaborations. These essentially involve corporations investing directly in those start-ups in exchange for equity stakes.
With growing consumer demand for sustainable and ethically sourced better-for-you food and beverage products, numerous players are entering the food scene propelling innovations in agri-tech and food-tech. Established corporations in these sectors are increasingly turning to start-ups and engaging in corporate venturing as part of a deliberate strategic initiative to access the solutions that enable them to meet these strong consumer demands.
A win-win formula
For the CVC teams, the aim of such collaborations is to access novel technologies and secure a competitive edge in their respective dynamic and rapidly evolving industries. In return, young food-tech and agri-tech companies receive financial backing, resources, and—importantly— validation. These are essential levers for getting their concepts off the ground and into materialization. It's a win-win model for all.
Leading agrifood corporations: ADM, Bayer, BASF, Cargill, FMC, and Syngenta have collectively made more than 90 investments in over 65 companies.
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