Why does Brazil not have an agribusiness unicorn?

Brazil has the most arable land in the world, is among the leading producers of agricultural commodities, and is the biggest agrarian net exporter. At the same time, the country produced 17 unicorns (startups valued at USD 1 billion or more) over the last four years. And yet, Brazil doesn’t have an agribusiness unicorn.

From 2019 to 2022, the number of Brazilian startups linked to agribusiness grew from 1,124 to 1,703 according to Radar Agtech, a survey carried out by the state-owned agricultural research corporation Embrapa, early-stage investment fund SP Ventures, and consultancy Homo Ludens.

Farming is commonly associated with what is produced on farms, but what comes before and after is just as relevant for agriculture. This year’s survey identified 242 agtechs working with ‘pre-farm’ products and services (fertilizers, seeds, and plant genomics, marketplace of raw materials, among other things); 705 with an ‘on-farm’ business model (such as automation, biological control, agricultural waste management, drones, machines, and IoT); and 717 agtechs with a ‘post-farm’ approach (in areas like urban farming, ghost kitchens, and online grocery).

“The segment grew on top of a strong base, amid a challenging macroeconomic environment, with low liquidity and layoffs,...