FMC Ventures Undergoes Restructuring Amid Challenges in Agtech Investment

FMC Corporation has restructured its venture capital arm, FMC Ventures, resulting in the departure of its three-member investment team. The move comes as the company adapts to financial pressures and broader difficulties in the agtech investment landscape.

Since its launch in 2020, FMC Ventures has invested in early-stage companies developing agricultural technologies, backing startups such as Agrospheres, Guardian Agriculture, Traive, Micropep Technologies, Trace Genomics, Niqo Robotics, and Scanit Tech. However, shifting market conditions and cost-cutting efforts across the agricultural input sector have led FMC to reassess its approach.

The restructuring follows a period of stagnation in agtech investment. In 2024, agtech startups secured $5.7 billion in funding across more than 700 companies, a figure largely unchanged from the previous year. Market conditions, including lower commodity prices, supply chain disruptions, and increased operating costs, have further strained the sector. While FMC has reaffirmed its commitment to agricultural innovation, the layoffs indicate a shift in strategy.

Mark S. Brooks, former managing director of FMC Ventures, recently wrote about the need for alternative funding models in agtech, emphasizing that traditional venture capital structures may not align with the industry’s long development cycles. His comments highlight ongoing concerns about the sustainability of VC-backed growth in agricultural technology.

The restructuring follows FMC Corporation’s broader financial adjustments, including the November 2024 sale of its Global Specialty Solutions business to Envu. While FMC Ventures continues to manage its existing portfolio, the long-term implications of these changes remain uncertain as the agtech sector navigates a challenging investment climate.