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Agrifoodtech Funding Trends in Q3 2025: Virtual Fencing Takes the Lead

In the third quarter of 2025, agrifoodtech funding witnessed a significant shift, driven largely by farm management and precision ag software startups. A standout moment was the impressive $100 million raise by New Zealand-based Halter, a pioneering company in the virtual fencing sector.

Spotlight on Virtual Fencing Innovations

Halter’s innovative “smart collars” for livestock allow ranchers to herd animals without constructing traditional fencing, offering both efficiency and sustainability. Another noteworthy contender in the virtual fencing arena is Nofence, which raised $35 million shortly after Halter, marking a growing trend in livestock management technology.

Despite this promising development, the overall funding landscape for agrifoodtech appears bleak. Investment figures dropped by 32% to reach $1.7 billion in Q3, a staggering nearly 50% decrease compared to Q3 2024, as per preliminary data from AgFunder.

Declining Deal Count

The number of deals in agrifoodtech has also declined, with only 195 transactions recorded in 2025—consistent with numbers from the previous quarter but significantly lower than in earlier years.

Virtual Fencing and Feed Management Lead the Charge

Within the Farm Management Software and Sensing category, notable funding rounds include $50 million raised by BinSentry, a feed management platform, and a $60 million round secured by EarthDaily, a geospatial intelligence company. These successes helped elevate the category’s status, particularly due to the involvement of larger funding rounds.

In contrast, many other areas in agrifoodtech are struggling, with these standout deals providing much-needed optimism amid a harsh funding landscape.

Renewed Interest in Innovative Foods

After a series of underwhelming quarters, the Innovative Food sector, including alternative protein sources, has reversed its trajectory. Funding surged by 42% quarter-over-quarter, reaching $165 million.

Key players within this category have been organizations focused on fungi and egg alternatives. For instance, The Protein Brewery raised $35 million for its innovative use of fungi, while Revyve secured $28 million for its egg replacement products. The Better Meat Co also made headlines with a $31 million round, expanding its offerings beyond just alternative meats to include flour and dairy substitutes.

This growing trend indicates that the Innovative Foods category is beginning to align with its name by focusing on versatile and multifunctional ingredients rather than solely on consumer-facing products.