Grass no longer as green for agritech

This week’s On the Rise looks at the troubles in the agritech sector and the use of farming to capture carbon. [Read from your browser]( On the Rise 🚀 Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we look at: - [The problems cropping up in agritech get more intense]( - Regenerative farming attracts green investment Hello {NAME} Have you ever had a houseplant so sensitive that whatever you seem to do with it - watering it regularly, keeping it in direct sunlight, perhaps even fertilizing it - it seems to just continue dying? It took me almost two years of becoming a plant parent before I finally realized what almost always works best: leaving them alone. The fundamental error I used to make was overwatering the plants to the point that I was drowning them. When we want something to work so badly, we tend to overanalyze. Turns out, at times, going the uncomplicated route is the better path. Many agritech startups had to learn this same lesson in recent years. In our Big Story, my colleague Glenn asked insiders in the vertical about the reason behind the recent spate of layoffs in agritech startups in Indonesia and India.  --------------------------------------------------------------- [What ails agritech, and how can it come back?]( After a funding boom in 2022, reaching a peak of US$513.2 million, the industry has faced a capital drought. Profitability has become more elusive for agritech firms. One startup founder says many in the sector may be hurting themselves more by taking out the middleman in the picture. Another says incentivizing farmers for using a startup’s tech product, instead of monetizing it, could be a more worthy endeavor in the long run. There are no silver bullets here though. For instance, a business model that works for an agritech startup in one region, may not exactly work in another.  --------------------------------------------------------------- Farmers’ back-to-basics approach attracts investors’ attention That said, there is one emerging path to profitability in the sector that farmers and even residents in Asia could stand to benefit from: regenerative agriculture. The World Economic Forum defines this as “a way of farming that focuses on soil health.” It includes planting crops without any [tilling]( and decreasing the use of fertilizers and pesticides. Continuously grazing animals on the same plot of land, for instance, degrades the quality of soil in the long run. Experts say that healthy soil [can keep about 31 gigatonnes of carbon dioxide from the air a year](. Investors and some farmers initiating regenerative agriculture in the US argue that those who pursue such a practice can then be incentivized with carbon credits. One US-based wealth manager [shares]( that family offices in the country are “excited” to invest in “nature-based investments” such as regenerative farming. For instance, there are [already a number of startups]( offering solutions to measure the amount of carbon stored by soil that have attracted VC funding. California-based Yard Stick uses [spectroscopy]( to do so. Previously, one had to manually take a sample of a farm’s soil to measure how much carbon it could store. But the startup says its handheld device, which uses spectroscopic sensors, [could capture carbon data on the field]( mimicking the data one could capture from manually taking soil samples. [Toyota Ventures]( the VC arm of the Japanese automotive giant, led Yard Stick’s latest funding round. In Asia, [a number of scientific studies]( are being pursued to study how regenerative farming could improve the amount of carbon stored by rice fields. A Temasek-backed startup called [Rize]( is [focused on this very project]( as it says it’s building a platform that could help farmers in Asia to lower their emissions. If the practice of regenerative farming being incentivized for its carbon capture capacities is scaled - as farmers, investors, and even scientists are in agreement for once - it could be beneficial for all parties involved. Farmers get to keep their livelihood sustainable, investors get their returns, and scientists say it could keep carbon out of the air, which is always welcome in climate change mitigation. However, some scientists argue that there is a finite amount of carbon that our soil can keep. There’s also been no set standard method on how to measure the amount of carbon stored by soil. But as John Crawford, a professor at Glasgow University and the lead of the Global Soil Health Program, [says]( “This is the important point - we have no alternative for at least the next two decades. All I’m looking for is to buy about 20 years. We can do that with soil.” – Elyssa  --------------------------------------------------------------- DEEP READS Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [Embattled flash drive inventor returns to Malaysia with new bet]( Pua Khein Seng, dubbed by some as the father of the USB flash drive, is returning to his home country of Malaysia. The tech entrepreneur, who is currently based in Taiwan, is setting up a genAI-focused startup at the semiconductor hub that the country is building to strengthen its position in the global chip supply chain. 2️⃣ [From Reebonz to AI avatars: Singapore startup eyes $100b opportunity]( After getting delisted from Nasdaq in 2020, Reebonz began anew after being acquired by LiveCommerce Entertainment (LCE) and is now focused on developing genAI avatars for retail brands. LCE has high hopes that its [B2B2C]( approach will prevent Reebonz from failing for the same reason it did the first time. 3️⃣ [Singapore’s data protection deadline: a company’s survival guide]( Every company in Singapore is now required to have a registered data protection officer. In this community piece, a startup founder shares his tips on how startups can adapt to this new rule. 4️⃣ [Finding internal data is tough. Here’s how LLMs make it easier]( Shreyas Parbat, lead product manager at Grab, shares the key benefits of incorporating a large language model for a company’s internal operations. ---------------------------------------------------------------  SYNC 2024 - AI • SINGAPORE Hear Razer's CEO share his vision for the future of gaming at this exclusive C-level event Calling all founders, CEOs, investors, and corporate leaders, join us for a unique opportunity to hear Razer CEO Min-Liang Tan share his vision for the future of gaming. At SYNC 2024, he will be joined by Andrea Phua, senior director of National AI Group, for a captivating main stage session where they will delve into Razer’s cutting-edge AI initiatives that are transforming the gaming landscape. This is an exclusive opportunity to hear from a visionary leader at the forefront of the AI revolution. Don't miss your chance to network with fellow C-level executives leading the charge in AI, gain valuable insights into the future of this dynamic industry, and connect with industry leaders shaping the next generation of gaming experiences. Learn more about SYNC and [apply for a ticket](. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia Conference Jakarta | October 23 - 24]( Over 4,000 founders, investors, and leaders from companies like eFishery, Qapita, Baidu, Brankas, and AWS have already secured their passes for the Tech in Asia Conference Jakarta. Don't miss out! Our presale passes are selling out fast. [Grab yours now]( and enjoy a 30% discount before prices increase on October 2 or we sell out completely. Secure your spot today and join the thousands of innovators shaping the future of Southeast Asia's tech landscape.  [DNA Leadership Summit | Jakarta, November 14-15]( Leadership isn’t just a title; it's a superpower. Join us at the DNA Leadership Summit and learn how to harness your inner superhero. Discover the strategies that have propelled industry giants to the top and unlock your own path to success. Are you ready to lead the charge? [Sign up for free]( [Startup Factory at Tech in Asia Conference Jakarta]( Looking to attract investors, customers, and partners? Exhibit your startup at Southeast Asia's premier tech conference! With less than 20 slots remaining, now is your chance to showcase your innovation alongside rising startups from Indonesia, Japan, Singapore, ​​Turkey, Hong Kong, Cambodia, and more. Join us at Tech in Asia Conference Jakarta and gain unparalleled exposure to the region's most influential founders, investors, and tech leaders. Applications are open until 16 October or when fully sold out! [Apply now.]( ---------------------------------------------------------------  That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894