Po Bronson Shares Strategies for AgriFoodTech Startups Amid Venture Downturn

Po Bronson, general partner at deep-tech investor SOSV and managing director at IndieBio SF, provided insights to AgFunder News on how AgriFoodTech startups can survive the current downturn in venture capital funding while pursuing innovation and growth. Amid a challenging financing landscape, Bronson emphasized the importance of patience, discerning investment, and identifying high-potential companies even when initial pitches seem underwhelming. “Some startups pitch us, and it’s a terrible pitch, but I don’t just ignore those people. I have to hunt amongst the crumbs and find companies who no one’s going to invest in, but they are actually doing something amazing,” he said.

Despite the grim funding environment, startups that demonstrate performance continue to secure investment. Bronson reassured that the venture ecosystem remains functional: “It’s not a broken system,” he told AgFunder News, highlighting that investors are still allocating capital to businesses with clear traction and validated potential.

Bronson underscored the growing significance of private wealth outside traditional venture funds. He advises startups to “get out of the VC world as fast as you can,” explaining that venture capital is expensive and extractive, suitable primarily for achieving high returns rather than sustaining long-term operations. In his experience, families and sovereign wealth funds, as long-term holders of capital, often provide the most stable financial backing for innovative startups.

In the realm of biomanufacturing, Bronson stressed that startups must focus on low-CAPEX solutions to remain competitive. Traditional precision fermentation facilities can cost hundreds of millions of dollars, a barrier most startups cannot overcome. By cultivating organisms in raceways, open-air greenhouses, or single-use plastic bioreactors, companies can reduce costs while maintaining robust operations. Similarly, plant cell culture technologies allow for scalable, cost-effective production with tailored bioreactor designs, often paired with joint venture and royalty models.

Bronson also highlighted applications of artificial intelligence (AI) across the agrifood sector. His portfolio includes Avalo, using AI to optimize crops; NotCo, which reformulates consumer goods; FloVision, enabling real-time monitoring of yield and labor efficiency; and Calyx, deploying AI to predict poultry growth. He emphasizes investing in systems that generate unique, valuable data that cannot be replicated internally by large consultancies or corporations, offering measurable ROI for end-users.

Regarding sector trends, Bronson prefers to invest in companies with strong fundamentals rather than chasing hot markets. Examples include Farm Minerals, which offers emissions-free fertilizers at competitive prices, and California Organic, which converts agricultural waste into organic-certified ammonia fertilizer—the first of its kind approved by California, achieving 80% profit margins.

The role of corporates and governments is increasingly critical in the ecosystem. Corporates provide product testing, strategic partnerships, and reliable oversight, often demonstrating more commitment than purely financial investors. Meanwhile, government-backed initiatives, such as the Ireland Biomanufacturing Fund, help mitigate risk by providing guarantees or co-signing capital arrangements, especially when long-term offtake agreements are unavailable in the food sector. Bronson explains, “This model is very helpful because it could help food companies actually get into long-term offtakes, because they don’t do them.”

Bronson also revealed his concerns about over-dilution in funding rounds, a topic he plans to explore in his upcoming book Weapons of Mass Dilution, co-authored with Arvind Gupta. He cautions against inflating valuations prematurely, which can erode early investor equity and pressure startups to overextend. His investment strategy prioritizes ensuring companies earn their valuations through real revenue growth, rather than speculative hype.

In conclusion, Bronson reassures that well-performing startups continue to attract funding despite market headwinds. His guidance emphasizes a combination of strategic capital sourcing, low-CAPEX innovation, AI integration, and leveraging corporate and government partnerships. By navigating these factors thoughtfully, AgriFoodTech startups can thrive and drive the next wave of agricultural and food innovation, according to Po Bronson in his interview with AgFunder News.