Automation Leads Growth as Agtech Investment Stalls
Despite a slowdown in broader agtech funding, automation continues to attract strong investor interest across farming sectors.
Automation is making steady gains in agriculture—even as funding for agtech as a whole slows. From mushroom harvesting to weed control, startups focused on farming automation are securing significant investments.
One standout is 4AG Robotics, a company based in British Columbia. It recently raised $29 million in Series B funding for its mushroom-picking robots that work around the clock—trimming, packing, and handling mushrooms with minimal human input.
This trend reflects a larger movement: automation is filling labor gaps and meeting rising food demand. It’s not just mushrooms. From leafy greens to pollination, automation is transforming agriculture and drawing billions in funding.
Major Investments in Agricultural Automation
Several companies have raised large funding rounds recently, showing the strength of the automation trend:
- 80 Acres Farms, based in Ohio, raised $115 million in February. The company operates high-tech indoor farms using robotics and AI. It also acquired Plantae Biosciences, a plant-breeding startup based in Israel.
- Carbon Robotics, based in Seattle, secured $70 million last October. The company builds AI-powered robots that handle weed control and automate tractor operations.
- Beewise, an Israeli startup, raised $50 million in June. Its automated “bee homes” handle pollination tasks using robotic arms, sensors, and cameras—helping growers maintain crop yields.
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Why Automation Keeps Getting Funded
Investors are drawn to automation because it solves real problems: labor shortages, rising production costs, and the need for efficiency.
Across industries, including agriculture, venture capital continues to flow into automation and robotics. In recent months, companies using these technologies in construction, manufacturing, and household services have secured major funding rounds. Farming is following a similar path—building on its long history of mechanization.
Agtech Funding Is Flat, But Automation Stands Out
While automation is gaining ground, overall agtech funding remains flat. In 2025 so far, startups in the agricultural space have raised about $2.4 billion, similar to last year’s pace and far below the 2021 peak.
Funding levels continue to fluctuate quarter to quarter. The difference now is that automation startups are among the few consistently attracting new capital.
Long-Term Outlook Favors Automation in Farming
Over time, automation is expected to take over more tasks that were once done by hand. Mushroom-picking is already seeing that shift—and other areas are likely to follow.
In the short term, however, the pace of adoption remains uncertain. Some technologies scale quickly, while others take years—or decades. The success of agricultural automation will depend not just on the technology itself but on how fast companies can prove their value and secure market share.
For now, one thing is clear: automation in agriculture is a rare bright spot in an otherwise cooling investment landscape.