X-ray shows that agricultural startups are more well-distributed in the country

The growth in the number of technology-based startups in the agricultural sector is slowing down, and their geographical concentration has started to decline as such companies expand into important production regions. Those are some of the conclusions in the sixth edition of Radar Agtech Brasil. The survey conducted by Embrapa, SP Ventures, and Homo Ludens for the year 2025 provides an overview of the agricultural innovation ecosystem, focusing on innovation hubs, startups, and investors.

Data shows that the Brazilian South had higher numbers than the Southeast, becoming the region with highest number of innovation environments. Out of the 390 environments that were mapped in the country, 37.18% are in the states of Paraná, Santa Catarina and Rio Grande do sul, 32.82% in São Paulo, Minas Gerais, Rio de Janeiro and Espírito Santo. 

The standout is Rio Grande do Sul, which has seen a significant increase in the number of incubators. According to Radar Agtech coordinator and Embrapa analyst Aurélio Favarin, the data show a clear participation of state governments in innovation encouragement. “Incubators work at the initial stage of the innovation process. It makes sense that a state considering developing an ecosystem would starts by incubators. Most of them are connected to state universities. There’s a plan for that, to create conditions for the creation of startups,” Favarin reports.

The Brazilian Southeast has the highest numbers of hubs, accelerators and ecosystems with governance, which shows a more mature stage in comparison with the South. While one focuses on business acceleration and development, the other focuses on the early stages of startup formation.

Deceleration and maturity                                     

Regarding numbers, the survey found 2.075 agtechs in Brazil in 2025, 5% more than the previous year. The number indicates a deceleration when compared with historical series that began in 2019. According to the authors of the survey, the moderate growth indicates higher maturity in the ecosystem and the consolidation of business models. 

“Between 2019 and 2021 there was a boom of innovation environments and investment funds that contributed to a big increase in the amount of agtechs. With time those initiatives start to accommodate themselves, and only the best structured ones remain. The ecosystem is still relevant, but with a less expressive increase. It is an expected behavior and shows the innovation ecosystem maturity”, Vitor Mondo, Embrapa researcher, analyses

Brazilian Southeast and South regions concentrate 79% of agtechs, with 55.2% and 23.7%, respectively. However, the data show that, despite the historical concentration, there is proportional growth in agtechs companies in the North, Northeast, and Midwest regions of Brazil, reflecting a gradual geographic expansion of the ecosystem toward areas that are important to agricultural production. In 2019, Brazilian North and Northeast together had only 5% of agtechs. Currently the Brazilian North has 7.6% and Northeast has 6.5%. The Brazilian Middle-East region has 7.1%. 

According to the data, in 2025 the Amazon state counts with 17 agtechs, Goiás with 15 and Mato Grosso with 14. Minas Gerais and Rondônia were the states with more new agtechs, both with 13. Rio Grande do Sul (minus 27), Tocantins and Distrito Federal (minus 7) and São Paulo (minus 6) were the states with highest reduction in agtechs numbers.

“This tendency happens at the same time as the agtechs proportions inside of farms increase. This is a positive sign that the companies are at a maturity level in which they can directly access farmers,” Mondo says.

Smallholder and midscale farming at the heart of the transition to integrated and resilient systems

by Carlos Eduardo Pacheco Lima*

While Brazilian agriculture has been historically built on scientific foundations and recognized for its productive efficiency, it is currently at a decisive moment. The combination of political and economic instability, geopolitical tensions, intensification of extreme weather events, and growing pressure for productivity poses a central challenge for the sector: to produce more, with less impact, increased resilience, and social inclusion.

In this context, a key point that is often overlooked in decision-making forums is the role of small- and mid-scale agriculture, including family farming. These are systems that, despite accounting for a significant portion of the country’s food supply, end up overlooked in structural strategies for innovation, funding, and public policy.

Ensuring employment, income, and decent living conditions in rural areas is not just a social agenda—it is an essential condition for food and nutritional security in Brazil. To this end, it is urgent to increase the resilience and sustainability of production systems, especially those that are most vulnerable to climate change and market fluctuations.

In recognition of such challenge, one of Embrapa’s strategic innovation fronts is the development and intensification of integrated unconventional production systems to be applicable across all Brazilian biomes. The proposal goes beyond the already established model of Integrated Crop-Livestock-Forestry Systems (ICLFS) and aims to effectively include small- and mid-scale agriculture.

The aim is to promote integrated systems that can diversify production, reduce environmental impacts, optimize the use of resources, generate income, and improve working conditions, while respecting regional specificities. Examples include agroforestry systems, integrating vegetables with fruit trees, no-till vegetable farming, integrating aquaculture with agriculture, aquaponics, small animal systems, integrating food and energy production, among other innovative models.

It is important to highlight that many small and mid-scale production chains—such as vegetables, short-cycle fruit trees, medicinal plants, and diversified family systems—still have a significant deficit of basic information, which limits the development of technologies appropriate to their realities.

Foto: Vincent Tan / Pexels.com

On the other hand, there is consistent scientific evidence demonstrating that the use of bio-inputs, agroforestry systems, aquaponic systems, no-till vegetable farming, protected crops, soilless production, and agroecological systems contributes to improving soil health, the production’s microclimate, and the efficient use of water and inputs. In addition, those models reduce external dependence, environmental footprint, and socioeconomic risks.

Such an agenda is directly in line with regenerative agriculture, the 2030 Agenda and the Sustainable Development Goals, as well as with guidelines from international institutions such as FAO and IPCC. It also relates to emerging models, such as urban and peri-urban agriculture, indoor agriculture, and, more recently, space agriculture, in addition to integrating bioeconomy and circular economy chains.

The main areas of innovation include agroforestry systems, integrating systems with aquaculture and small animals, production systems in protected or controlled environments, the redesign of production models in urban areas, multifunctional systems, and the use of inputs from the bioeconomy. On top of that there is the potential of emerging digital technologies—such as IoT, artificial intelligence, and drones—to increase efficiency, traceability, and decision-making.

Placing small- and mid-scale agriculture at the center of such transformation is not just a technical choice, but a strategic decision for the future of Brazilian agriculture. By promoting integrated, resilient, and sustainable systems, income generation opportunities expand, socio-productive inclusion is strengthened, and agriculture is better prepared for the challenges of the 21st century.

*Environmental engineer, PhD in Soils and Plant Nutrition, researcher on Global Climate Change – Embrapa Vegetables.