The demand for food has been in an increase owing to the rising population globally. This in turn creates an influx in the demand of food grains and a consequent pressure on agriculture. This is why more and novel means are being researched to help agricultural sector enhance production. Scott Tominaga who has been adeptly handling hedge funds states that it is this increased need for a more developed infrastructure that a lot of people are investing in start-up that are dedicated to making revolutionized methods for the purpose.
Statistics reveal that in the year 2019, these venture capitalists have invested around 2.8 billion dollars towards development of sustainable agricultural technology across the globe. The aim is to develop more environment friendly and effective means of yielding crops. This is achieved either through vertical farming or precision agriculture. It is being predicted that this venture capitalist investment is likely to accelerate over the years.
Venture capital by definition is a sort of equity funding that venture capitalist firms provide. This is primarily given to start ups and smaller businesses at an early stage of their inception. But the venture capitalists however, do a deep analysis and research on the potential of the particular growing company in the near future.
In 2021, the investment shot up to a $5 billion by around 440 venture capitalist funding deals. It is thus that Scott Tominaga states with such confidence that investments such as these are here to stay, encouraging individuals to consider investing in similar things. This is so that even more positive changes can be made to the agricultural sector and more innovations can be welcomed.
It can be estimated that the cost of production will also be lowered which is certainly a happy new for all farmers and consumers alike. As a matter of consequence consumers will be benefited with enhanced options and opportunities. The kore the production the lower the price of grains and other food items. In fact, a lot of other difficult situations such as scarcity of water and change of climate can also be handled effectively to suit the needs of agriculture.
Agriculture is in many ways the backbone for humanity, it is hence important that help be provided to it in any which way that will help it grow and, in the bid, help the society grow at large. The farms are not only sources of food grains, they are also a means of livelihood for a big fraction of the masses. These employments are not just in the fields and farms but also in the related factories and shops. Many families are surviving because of the agriculture sector.
According to Scott Tominaga the venture capitalists will continue to invest in the agriculture sector and help in the growth of the industry as far as possible. These are funds are mostly directed towards developing latest technological advancements such as synthetic biology, gnome editing, farm management, breeding technologies and risk mitigation tools.
