January 16, 2025

By Gerelyn Terzo, Global AgInvesting Media

FMC Corporation’s venture capital arm, FMC Ventures, has suffered a setback. The firm is facing a restructuring in the face of a disconnect between VC funding and agtech’s potential. Formed in 2020, FMC Ventures was launched to invest in startups and early-stage companies developing emerging technologies in the ag industry. However, weaknesses have begun to show as the parent company chooses to take a step back.

It’s no secret that VC moves at a frenetic pace, while agtech requires patience and time for adoption to take hold in one of the oldest and most traditional industries on the planet. Additionally, FMC Corp appears to be facing some of its own unique challenges that have exacerbated the issue as many crop input firms cut costs in a weak demand/pricing climate.

According to a statement FMC provided to GAI News, FMC Ventures isn’t going anywhere, at least for now: “FMC remains committed to innovation in agricultural technology. While we have made changes to our organizational structure to optimize operations, FMC Ventures continues to operate and manage its existing portfolio of investments under the leadership of Zack Zaki, Vice President of Corporate Strategy & Development,” the statement read.

However, GAI News has learned that FMC Ventures will suffer a wave of layoffs involving key personnel, a team of three led by managing director Mark Brooks, a leading industry voice. In addition to Brooks, FMC Ventures is parting ways with senior associate Matt Foley and principal Juliana Green. FMC’s VC group has been quite active of late, growing their portfolio and backing companies like Agrospheres, Guardian Ag, Traive, Micropep Technologies Trace Genomics, Niqo Robotics, Scanit Tech and Solasta Bio. Since last year, concerns have been swirling about FMC Corp’s cash flow performance.

According to the latest data, agtech startups raised a total of $5.7 billion in capital in 2024 across over 700 companies, results that were flat with 2023 tallies. The agtech sector saw just over three-dozen exits, similar M&A volume and a single IPO. Last year, agtech startups captured 1.82 percent of the total fundraising pie across sectors of the economy. Stalled fundraising has called into question the venture capital model and its applicability to the unique needs and performance of agtech companies.

Perhaps the writing was on the wall. In a post on LinkedIn, FMC Ventures’ Brooks recently declared the next wave of agtech had begun and the need for a nimble capital model was critical. He said, “For over a century, agriculture has been in the ‘Caloricene’ era—feeding the world with optimized calorie delivery. But agtech 2.0 is here: the ‘Holoagricene,’ where agriculture must nourish people and heal the planet. This shift demands innovation—and new ways to fund it. Traditional VC models were built for Silicon Valley, not slow-growth, high-impact industries like ag. We need patient, strategic, evergreen capital to fuel the future of food and climate.”

GAI News recently reported on FMC’s investment into Solasta Bio, a U.K.-based ag-biotech startup that helps growers protect crops with nature and peptide-based insecticides.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.