Agtech deals are on the rise, as both mainstream private equity funds and impact investors look for innovative approaches to the food economy. These businesses try to use technology to maximise the production and nutritional benefits of current agricultural processes. 

Malnutrition, food waste and damaging agricultural practices have all created a renewed focus on how food is financed, grown and distributed. These existing issues have all been exacerbated by the Covid crisis, as increased strain is placed on supply chains.

Food businesses are inherently well suited for non-financial, ESG-focused metrics. As economies try to #BuildBackBetter, investors of all types can look to the broader impact of their portfolio. In many cases directors and asset managers already have sufficient flexibility to consider broader ESG issues in their decision making.