Start-ups should compete with agribusinesses, not just sell to them, says First Thirty investor

Speaking to AgNavigator at the recent World Agri-Tech Innovation Summit in London, Yousefian said investors are increasingly looking for companies that take responsibility for results rather than simply providing data or recommendations.

From dashboards to outcomes

“We’re seeing more ambition around outcomes as a business model,” he said. “We’re seeing start-ups talking about delivering outcomes as a service.”

Historically, many agtech businesses have focused on dashboards, sensing technologies and decision-support tools. However, Yousefian believes that model is becoming less attractive as start-ups seek stronger revenue opportunities and greater control over value creation.

“A sensing company was present before offering a dashboard and insights,” he said. “Now we’re seeing businesses saying: ‘You should do this and I will underwrite that intervention decision.’”

Why start-ups should move down the value chain

The shift could ultimately see start-ups move into areas traditionally occupied by major agricultural suppliers.

“I think agtechs have an opportunity to almost compete with their customers,” he said. “Become an agronomy company, become a seed business. A genetics business can become a brand.”

According to Yousefian, consolidation and restructuring across agriculture are creating gaps in the market that ambitious start-ups can exploit by owning customer outcomes rather than acting solely as technology vendors.

The rise of ‘agri-health’

At the same time, The First Thirty is building its investment strategy around what it calls “agri-health” – the belief that agriculture and food companies will increasingly be valued according to their impact on human health.

“We see agriculture and food businesses becoming preventative healthcare businesses,” said Yousefian.

The firm’s thesis is based on growing consumer interest in nutrition, personalised health and chronic disease prevention. Rather than viewing food as a commodity, Yousefian believes consumers are beginning to see it as a health intervention.

“The cheapest form of healthcare is the food that you eat,” he said.

Linking soil, food and health

The First Thirty has invested in companies such as Edacious, which measures nutrient density in food products. The broader goal is to develop infrastructure that links soil health, crop production and food quality with measurable health outcomes.

“First you need to know what’s in the food,” he said. “Then the next question consumers are going to ask is: what did my food eat?”

Yousefian argues that future winners will be able to provide transparency across the entire biological chain, from soil health and crop nutrition to human wellbeing.

AI and biological intelligence

Advances in artificial intelligence, sensors, genomics and automation are making that vision increasingly realistic, he said.

“What is missing is the data. What I’m very excited about is a combination of sensing, genetics and AI. We call this biological intelligence.”

He pointed to autonomous systems and low-cost sensing technologies as tools that could dramatically reduce the cost of gathering biological data and enable more precise interventions on farm.

Capital remains the biggest hurdle

Yousefian acknowledged that attracting investment capital remains one of agriculture’s biggest challenges. But he added: “We see signals that this time is different. If people can see they can make money from improving soil, we’ll have a better planet.”