中國農(nóng)產(chǎn)品投資報告

1、2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM3Our China Report PartnerBits x Bites is a pioneer agrifoodtech VC investing in startups tackling food system challenges in China. It has invested in companies advancing chickpea protein concentrate for animal-free foods, gene editing for high-perfo

2、rming crops, and non-GMO meat production directly from animal cells.Image courtesy of EAVision, a Chinese agricultural drone companyChina AgriFood in 2021: A Year to Charge Forward2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM4YEAR IN REVIEW2020 turned even optimists into skeptics. Yet those in

3、 agrifood have a lot to feel positive about.While general private equity and VC investment levels sank 50% compared to 2019, agrifood startup investing in China increased 66.1%, next to a 34.5% rise globally.In line with global trends, upstream innovations gained a greater share of the funding, to t

4、ake 23.7% of the total $6 billion invested across the sector - up from 13.6% in 2019.Drone company XAGs $174 million Series C extension round, aimed at addressing rural labor shortages and farming input inefficiency, shattered Chinas record for the largest agtech deal to date. In a market where inve

5、stments have long skewed heavily downstream, this breakthrough hints at how Chinas agrifood sector is evolving and theopportunities ahead in 2021.The momentum in farm robotics is by no means anaccident. For years, the central government has been driving consolidation of Chinas smallholder farms into

6、industrialized operations. Between 2019 and 2020, state- owned enterprises and other corporates increased their investment in large agricultural projects by 43.6% to reach$79 billion (see p5). The growing scale and economic resources available to Chinas farming operations have created fertile ground

7、 for technology upgrades.The governments declaration of biotech as essential for national security this year also accelerated the growing trend for innovation and investment in ag biotech.Alongside tightened environmental laws challenging the traditional chemical synthesis industry, biomanufacturing

8、 startups are gathering pace.Everywhere you look, forces are pushing Chinas agrifood ecosystem forward, building new startups, and drawing cross-sector investors. The sector has come a long way since Bits x Bites launched as Chinas first agrifoodtech VC five years ago. The golden era is just ahead -

9、 and were closing in.Matilda Ho, Founder & Managing Director, Bits x BitesYEAR IN REVIEWData from C 2020$30B$79B20182020+62% p.a.$55B2019Large-scale project investments by corporates2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM5Chinese corporations have continued to increase investment in farm

10、ing projects and consolidate smallholder farms into industrial-scale operations. As farms grow in scale and resources, the pace of agtech adoption also increases.Leading agricultural enterprise New Hope Group and hog producer Muyuan Foods are among the biggest investors in animal husbandry projects.

11、Large-scale Ag Project Investments2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM6Year End Overview 2020Image courtesy of Lyxia, a Chinese microalgae cultivation companyChina AgriFood Startup Funding Breakdown 2020UpstreamAg Biotech; Farm Management Software, Sensing & IoT; Farm Robotics & Equip

12、ment; Bioenergy & Biomaterials; Novel Farming Systems; Agribusiness Marketplaces; Midstream Technologies; Innovative FoodDownstreamIn-Store Restaurant & Retail Tech; Online Restaurants & Meal Kits; eGrocery; Cloud Retail Infrastructure;Restaurant Marketplaces; Home & Cooking Tech;Premium Branded Foo

13、ds & RestaurantsKey Insights for 20202021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM8YEAR IN REVIEW1. Upstream tech draws more investment than ever2020 saw a shift of investor interest toward technology that boosts agricultural efficiency and agrifood self-sufficiency. It will be some time befor

14、e upstream investment surpasses downstream, but clearly more investors are becoming comfortable with agrifood opportunities that align with government food security initiatives, especially as industrial- scale farms grow in China.Two sizable deals in Farm Robotics, Mechanization & Equipment Deals an

15、d Ag Biotechnology lead the pack. Drone company XAG raised a Series C extension of $174 million, making it the largest round in Chinese agtech to date. Life sciences company CapitalBio Technology, which develops food safety and molecular breeding solutions, raised $116 million.These sectors have inc

16、reasingly drawn state-backed investors and corporate VCs, from BASF to Softbank to Baidu. With diverse investors warming to the farm, the wallthat has long isolated agrifood from Chinas prolific tech investors is finally crumbling.2. Rise in wellness priorities and in-home indulgence persist beyond

17、Covid-19Disruptions to Chinese daily lives caused by the Covid-19 pandemic were relatively short lived. But some of the behavioral shifts are here to stay.Besides eGrocery, more consumers are experimenting with new ready-to-eat products that bring the restaurant experience to the comfort of their ho

18、mes. Zihaiguo is a self- heating hotpot brand that, in just under 10 months, raised three equity rounds and is now valued at $500 million.The pandemic also accelerated spending on health, particularly conscientious indulgence like guilt-free snacking and low-sugar desserts. Alternative protein compa

19、nies harnessed this health momentum, raising $127 million in total to prove that they can convince consumers to switch to meat and dairy replacements.Key Insights for 2020 (continued)2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM9YEAR IN REVIEW3. Supply chain upgrades nationwide as large platfo

20、rms and regional players link upFresh produce procurement platforms are increasingly filling supply chain gaps highlighted by downstream foodservice and food retail upgrades.Chinas foodservice industry is expected to reach $950 billion by 2024, and this growing market is drawing strategic investors

21、looking to expand vertically and horizontally. Food delivery app Meituan backed midstream supplier Wangjiahuan for its sourcing capabilities and catering clientele; farm-to-business unicorn Meicai invested in central Chinas Liancaiwang to build out its regional sourcing and customer reach.While B2B

22、e-commerce platforms can bring convenience, they have to consistently excel in cost performance and quality to sustain market share. This requires them to accumulate and actively manage sourcing assets on a region-by-region basis. AgFunder expects more startup funding and M&A activity in this catego

23、ry in the near future.4. eGrocery draws top funding while the search continues for a winning formulaWith $3.6 billion raised, eGrocery remains the backbone of China agrifood investment. The Covid-19 boost for online grocery was felt in China just as it was around the world, with a 147% surge in gros

24、s merchandise volume during H1 2020. This helped sustain investor optimism in the category. Some of the largest eGrocery investments came from internet giants JD and Tencent, as well as provincial governments.Deal sizes in the category point to high capital demand. Meeting consumer expectations for

25、fast delivery and price performance requires continuous investment. Some companies are expanding vertically to strengthen sourcing and set up their own farms. Investment has also morphed to become increasingly consolidated, with 95% of 2020s total funding in the category going to just six companies.

26、 We believe this investor support is unlikely to wane anytime soon, as eGrocery makes up just 10% of food sales in China today. Penetration is still just scratching the surface.# DealsInvestment amountAnnual Financings 2017-2020YEAR IN REVIEW$2B$5.8B$4B$6B2021 CHINA AGRIFOOD INVESTING REPORT | AGFUN

27、DER.COM101772832242932017201820192020YEAR IN REVIEWUpstream DownstreamDollar Investment 2017-2020$106M2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM11$1B$490M$1.4B$2B$5B$3B$4B2017201820192020Deal Activity 2017-2020YEAR IN REVIEW2864921261492181281652017201820192020Upstream Downstream2021 CHINA

28、AGRIFOOD INVESTING REPORT | AGFUNDER.COM12YEAR IN REVIEWUpstream DownstreamInvestment Growth Change 2017-2020806%190%176%47%2020-36%2019-49%20182021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM13Deals by Category2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM14Image courtesy of ICAN Technology

29、, a Chinese precision agriculture companyIn-Store Retail & Restaurant TechShelf-stacking robots, 3D food printers, POS systems, food waste monitoring IoTHome & Cooking TechSmart kitchen appliances, nutrition technologies, food testing devicesRestaurant MarketplacesOnline tech platforms delivering fo

30、od from a wide range of vendorseGroceryOnline stores, retailers & marketplaces for sale & delivery of processed or un-processed ag products to consumerOnline Restaurants & Meal KitsStartups offering culinary meals & sending pre- portioned ingredients to cook at homeInnovative FoodCell-cultured meat,

31、 novel ingredients, plant-based proteinsMiscellaneouse.g. fintech for farmersUpstream Downstream BothAgriFood Startup Category DefinitionsWHAT IS AGRIFOOD TECH?Midstream TechnologiesFood safety & traceability tech, logistics & transport, processing techBioenergy & BiomaterialsNon-food extraction & p

32、rocessing, feedstock technology, hemp productsAg BiotechnologyOn-farm inputs for crop & animal ag including genetics, microbiome, breeding, animal healthNovel Farming SystemsIndoor farms, aquaculture, insect & algae productionFarm Robotics, Mechanization & EquipmentOn-farm machinery, automation, dro

33、ne manufacturers, grow equipmentFarm Management Software, Sensing & IoTAg data capturing devices, decision support software, big data analyticsAgribusiness MarketplacesCommodities trading platforms, online input procurement, equipment leasing Cloud Retail InfrastructureOn-demand enabling tech, ghost

34、 kitchens, last mile delivery robots & servicesPremium Branded Foods & RestaurantsPremium food experience including better product design, formulation, packaging & thematic restaurants2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM1561%13%9%5%4%2%2%eGroceryPremium Branded Foods & Restaurants Mid

35、stream TechnologiesAg BiotechnologyFarm Robotics, Mechanization & Equipment Innovative FoodHome & Cooking Tech Bioenergy & BiomaterialsFarm Management Software, Sensing & IoT In-Store Retail & Restaurant TechNovel Farming Systems Agribusiness Marketplaces Restaurant Marketplaces MiscellaneousOnline

36、Restaurants & Meal KitsChina AgriFood Startup Funding by Category 2020DEALS BY CATEGORY2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM162611%11747%4819%2510%125%218%2020Deal Numbers by Category 2019 vs 2020DEALS BY CATEGORY5137%4431%3928%32%2019eGroceryPremium Branded Foods & RestaurantseGrocery

37、Premium Branded Foods & RestaurantsMidstream TechnologiesMidstream TechnologiesAg BiotechnologyAg BiotechnologyFarm Robotics, Mechanization & EquipmentFarm Robotics, Mechanization & EquipmentInnovative FoodInnovative Food2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM17DEALS BY CATEGORY$782M$564

38、M$273M$263M$127MeGroceryPremium Branded Foods & RestaurantsMidstream TechnologiesAg BiotechnologyFarm Robotics, Mechanization & EquipmentInnovative Food2611748Upstream Downstream#Deals2125122021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM18Most Active Categories in 2020Twenty-six eGrocery deals r

39、aised $3.6bn, more than 60% of the total funding raised in Chinas agrifood ecosystem. But the number of deals in the category was actually lower than in 2019. This points to the high capital demand and the relative maturity of companies in Chinas eGrocery sector.Premium Branded Foods & Restaurants a

40、ccounted for 47% of all deals closed, a big jump from 37% in 2019 - showing the relative ease to start companies and raise capital in this category.Among upstream categories, Ag Biotechnology, Farm Robotics Mechanization & Equipment, and Innovative Food all showed a substantial rise in the number of

41、 deals closed.$3.6BDEALS BY CATEGORYUpstream Downstream MiscellaneousMedian Deal Size by CategoryIn eGrocery, the high median deal size is consistent with the high capital demand required to strengthen the supply chain and meet consumer expectations for delivery time, product selection, and value.Bi

42、oenergy & Biomaterials is skewed by a single investment in Tian Huo Yun Ma. Its one of a handful of companies to be granted a license to cultivate and process cannabis for the expanding global market.$85M2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM19$3M$1M$73M$15M$10M$8M$7M$1M$1M$1MMiscellane

43、ous$1MeGroceryIn-Store Retail & Restaurant TechPremium Branded Foods & Restaurants$1MHome & Cooking TechBioenergy & BiomaterialsFarm Robotics, Mechanization & EquipmentAgribusiness MarketplacesNovel Farming SystemsAg BiotechnologyMidstream TechnologiesInnovative FoodFarm Management Software, Sensing

44、 & IoTTop Farm Robotics, Mechanization & Equipment DealsDEALS BY CATEGORY$174M2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM20$26M$20M$15M$15M$10MXAGi-KINGTECQuadtalentFJ Dynamics *R1FJ Dynamics *R2CloboticsYetiantieniu$2MAutel Robotics$2MAlong with the government push for modernized farming an

45、d food security, the agricultural drone sector fits snugly with Chinas small average farm sizes, which make large tractors and planes unsuitable. By late 2020, over 20 provinces had received drone subsidies to further accelerate adoption.Top fundraiser XAG is the largest agriculture-first drone comp

46、any in China, serving close to 9 million farmers with precision input devices and software. Its $174m Series C extension is the biggest deal ever in digital farming in China.Internet giants Baidu Ventures and Tencent backed XAG and FJ Dynamics respectively to expand their massive data sets and cloud

47、 business applications. This also speaks to cross-sector investors increasing focus on the agritech opportunity in China.* “R” indicates a company raising multiple roundsTop Ag Biotech DealsDEALS BY CATEGORY$116M$36M$29M$17M$15M$15M$15M$14MCapitalBio TechnologyCwbio IT GroupMojia BioJinse NonghuaBot

48、a BiosciencesQihe BiotechReadlineLead BiotechnologyIgenesis$9MEnzymaster$7MA series of policy drivers are pulling scientists into the ag sector in China. They include the tightening of environmental protections, the ban on growth-promoting antibiotics in livestock feed, and the national target to fl

49、atten agrochemical use, just to name a few examples.Biochip and testing company CapitalBio Technology leads the pack with its $116m pre- IPO raise.The remaining companies on the top deals list are advancing cost-effective and sustainably produced agricultural inputs, as well as ingredients for anima

50、l and human health products. Most are only at the Seed and Series A stages and it will be exciting to see them mature over the coming years.Bits x Bites portfolio company2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM21Top Midstream Technologies DealsDEALS BY CATEGORY$145M$87M$60M$58M$50M$23M$15

51、M$15M$15M$15MYonghui Fresh FoodWangjiahuanGuoquan Shihui *R2Lehe Food *R1Guoquan Shihui *R1LiancaiwangJutubaoDingding XianshiJianan NongmuLehe Food *R2Fresh produce and ingredient procurement platforms are filling supply chain gaps highlighted by the expansion of food service and retail offerings do

52、wnstream. These platforms cut out multiple layers of middlemen and logistical inefficiencies. They also equalize the playing field for small downstream businesses. Midstream Technologies raised 68% more in 2020 than in 2019.2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM22The largest round went

53、to Yonghui Fresh Food, a spinoff from Yonghui, a large grocery operator.The race to dominate supply chain procurement is not over. Meicai, the leading B2B procurement platform valued at $7.3bn, backed Liancaiwang to expand its sourcing muscle and reach F&B customers in central China.While tech-enabl

54、ed platforms can extend convenience to business customers, ultimately it will be cost and consistent produce quality that will keep them on board. This requires the accumulation and management of sourcing assets region-by-region.* “R” indicates a company raising multiple roundsDEALS BY CATEGORY$800M

55、$700M$495M$363M$300M$290M$200M$196M$88M$81MXingsheng Youxuan *R1Xingsheng Youxuan *R2Missfresh *R1Yipin FreshDingdong MaicaiMissfresh *R2Tongcheng ShenghuoNice Tuan *R3Nice Tuan *R1Nice Tuan *R2Top eGrocery DealsWith $3.6bn raised, eGrocery almost doubled its 2019 funding levels, with the majority o

56、f that raised in H1 2020 due to the immediate demand created by Covid-19. Despite the funding increase, the number of eGrocery deals halved. This highlights investors preference to double down on more mature players rather than betting on early-stage ventures in the category.The leading fundraiser i

57、s Tencent- and JD-backed community eGrocer Xingsheng Youxuan, which coordinates sourcing and sales on WeChat. Since community group-buying came to light in 2018, consolidation has started to take place. Nice Tuan (backed by Alibaba) merged with Niwoning, while Tongcheng Shenghuo merged with Familyon

58、e.Missfresh, the company that pioneered distributed small-scale warehousing to reduce delivery times and cold chain costs, closed its Series F round at a valuation of over $3bn.* “R” indicates a company raising multiple rounds2021 CHINA AGRIFOOD INVESTING REPORT | AGFUNDER.COM23DEALS BY CATEGORY$100

59、M$65M$58M$50M$29M$29M$25M$22M$22M$16MNaixuechaHefu NoodleSimple LoveZihaiguoA1FoodBaijia Food *R2Baixiang FoodSweet7HON LifeBaijia Food *R1Top Premium Branded Foods & RestaurantsCovid-19 helped concentrate capital on more established brands in the F&B consumption upgrade trend, including restaurant

60、chains Naixuecha and Hefu Noodle, which operate 507 and 310 locations respectively.Branded food products like healthy snacks for millennials squeezed into the top 10 deals list. Probiotic yogurt brand Simple Love raised Series A funding, while cereals brands HON Life and Wangbaobao received $21.8m a