b'We come from an era where venture capital wasn\'t even ainto the phase now of being more specific at the specific things niche asset class, it was a nonexistent asset class, Jardim said.that we want to invest in.In comparison, he said that today, never have we seen so muchI think investment discipline is a key word here to attract investor interest in broad investor pitches from corporate ven- more capital and to transform our industry in something that tures, generalist investors, North American ag tech investors, andcan be recurrent. Because if we\'re constantly raising money, and my fellow colleagues here co-investing alongside. There\'s simplyfunding companies that don\'t return capital ever, then we have a a lot more pockets. They are very deep pockets. problem, Zaclis added.For example, two of his portfolio companies will be announc-ing new funding rounds at over USD $100 million valuations. Its the first companies to break the nine-figure number and they\'re doing it right now in 2024 in the middle of thisin theoryWe believe that it isnt impossible, but its hard. It takesfunding drought, when valuations because of interest rates and all the other factors are really being tested, Jardim said. a lot of grit and resilience and innovations from both I think ag in the region has continued to prosper. It\'s a newentrepreneurs and from investors to understand that asset class. I don\'t really see this drought. I think maybe the num-bers are referring to food tech, delivery and other categories thatwere not going to have unicorns in five or seven years. had too much exuberance. We need to be here for the long term and be supportive This isnt to say that agtech is easy. Startups of all kinds are at high risk. Ninety percent of all startups ultimately fail. In theirfor startups for the whole journey of the investments.first year of operations, two out of 10 U.S.-based startups will go Natalie Vergara Gironunder, despite the U.S. offering an enabling environment. Given those challenges, Natalie Vergara Giron, head of plat-form at Mercy Corps Ventures, said that startups need long term support.Jardim said capturing opportunity comes down to a natural "What do we expect here in Latin America, or in Africamaturing that is occurring within South Americas investment where we don\'t have the enabling environment? We don\'t haveenvironment. the basic infrastructures or logistics to set it up. And also, weYou have a venture community that is going into its second, don\'t have those success cases or examples that everybody canthird fourth cycle. We have investors that have already learned: look up to, Vergara Giron said.this a business that you learn by making very expensive mis-We believe that it isnt impossible, but it\'s hard. It takes a lottakes We\'re selecting founders better we\'re bringing a better of grit and resilience and innovations from both entrepreneursvalue proposition for founders beyond financial capital. and from investors to understand that we\'re not going to haveWhile financial returns are a critical priority, Zaclis said dollars unicorns in five or seven years. We need to be here for the longneed to be viewed as one part of a bigger whole. Real returns, he term and be supportive for startups for the whole journey of thesaid, come only via seeing investment through a wider lens. investments. Financial returns are part of what you generate as an inves-Given that the panelists generally agreed that South Americator, Zaclis said. There are so many other things that come with offers significant opportunity for agtech investors, is the regionit: developing technology, developing ecosystems, bringing where it could be in terms of agtech investment?money so that entrepreneurs can effectively put ideas to work We\'re not leading in terms of the amount of money deployedI would love to complain and say the money is not coming in. It\'s when we compare the Brazilian market to the U.S. market, fornot that it\'s not coming in. We are still portrayed from outside as example, Zaclis said. It\'s a completely different kind of volume.countries that are exporting grains and not exporting technolo-Should we be leading? Probably. But I also think we need to do agies. I think we should really push for the second one: exporting bit of self-criticism as well as investors I think we went throughknowledge and technology. And I think that\'s the way to push a phase of less discipline, more volume. Maybe we need to gofor returns.SWLATAMSEEDWORLD.COM /21'