By Agroempresario.com

Japan’s agrifoodtech sector has made significant strides in 2024, emerging as one of the fastest-growing markets in the Asia Pacific region. The country has raised $280 million across 93 deals, marking a 58% increase in funding compared to the previous year. This growth has propelled Japan to third place in total agrifoodtech funding in the region, up from its previous ranking in 2023. This development represents a recovery from the global economic contraction of 2022, signaling the country’s resilience and commitment to innovation within the agrifoodtech ecosystem.

The surge in funding highlights Japan’s growing prominence in the agrifoodtech sector. However, it’s important to note that 53 of the 93 deals in 2024 had undisclosed amounts, suggesting that the actual total funding could be even higher than reported. Notably, the funding figures include only those deals that disclosed their amounts, and many rounds, particularly at the seed stage, remained confidential.

Among the key sectors receiving investment, Bioenergy & Biomaterials leads with $65.2 million raised across five deals in 2024, with the majority of the funds allocated to biomaterial manufacturer Spiber. This category experienced a 33% increase in funding over the same period last year, solidifying its position as a top investment focus for agrifoodtech in Japan.

Cloud Retail Infrastructure comes in second, securing $52.6 million through two deals, primarily driven by Dinii, a restaurant app. Meanwhile, Farm Management Software, Sensing & IoT raised $26.6 million over 17 deals, indicating strong investor interest in technologies that enhance farming operations. This category included deals across various stages, from seed to series C, showing broad support for agrifoodtech solutions at all levels of development.

Japan’s innovative food sector, which was the top-funded category in 2023, saw a decline in 2024, falling to sixth place with $23.3 million raised over 12 deals. Despite this drop, the funding levels remain notable, suggesting that Japan’s agrifoodtech landscape is diverse, with investments spread across various sub-sectors.

In terms of investment stage, Series A rounds were the most common, with 25 deals, followed by Seed, B, and C rounds, each with 17 deals. This distribution indicates a strong interest in early-stage and growing startups, with an average company age of six years involved in these rounds.

As Japan continues to attract significant agrifoodtech investments, its startup ecosystem is poised to become a major player in the global agrifoodtech landscape, driving innovation in bioenergy, farm management, cloud infrastructure, and more. With increasing investor confidence, Japan is well-positioned to further solidify its role as an agrifoodtech hub in the Asia Pacific region.