A large portion of Farm Tech startups is building technologies to help growers increase their yields and farm more efficiently — from reducing their use of fertilizers and water, to pinpointing issues in the field. Many of these startups are offering a single solution, such as a soil moisture sensor or aerial imagery, but they’re unlikely to have more than an incremental impact on the agriculture industry, and that means the potential for VC returns is limited, argues Paul.

Source: “Basic Farm Tech Tools Won’t Provide VCs the Exit Returns They Need, So Why Are VCs Still Investing in Them?” – AgFunderNews