The stagnation of agribusiness startups is a phenomenon that has been occurring since 2023, as a result of the low number of new companies in the sector and the greater demands of investors interested in the sector. Even though agribusiness has generated a GDP of more than R$192.2 billion, investor demand has grown considerably, especially in terms of security. It’s no surprise that one of the hallmarks of agribusiness is precisely the development of interesting solutions even in times of crisis. To this end, asset tokenization was one of the most relevant choices, as it provides both liquidity and other points desired for the sector’s growth, such as security and practicality in operations.
Understanding the boom in agribusiness startups in Brazil
The high growth of agribusiness startups in Brazil is mainly due to the country’s natural conditions, which favor activities in this area. It is precisely because of this factor that approximately 800 agtechs were born in Brazil between 2000 and 2023, revealing the great potential that this sector shows. On the financial front, all this promise of growth was reflected in scenarios with high liquidity rates and much lower interest rates than today. As a result, the number of startups that emerged was much higher because the acquisition of funds was simpler. Thus, the Brazilian agribusiness market is not just seeing tokenization as a trend, but as a reality that tends to develop more and more. All the security and practicality offered by the technologies allows agribusiness to achieve points with greater guarantees, such as making larger offers and strategies for raising funds such as agro-industrial projects or credit rights, for example.
An Analysis of the Current Agribusiness Startup Market
The agribusiness startup market is currently in a situation of retraction, closely linked to the reduction in liquidity. The high interest rates seen in both Europe and the United States are also decisive factors that completely alter the way in which investors make investment choices. In general, investors are looking for agribusiness startups that really have an interesting proposition and make a difference. As a result, this leads to a more cautious investor profile, which requires the company to take greater care in its activities in order to convey confidence to the interested party. In order to solve these problems, companies have used technological financial solutions developed mainly as a result of the tokenization of assets. This is because they allow processes to take place with great security and agility, which makes the applications attractive again. Understanding the reasons for the downturn in investments in agribusiness startups is knowledge that directly alters how investors view the options available on the market. Consequently, this understanding is very important for those wondering how to be a relevant freelance investment advisor who is able to understand their clients’ demands in the market.
Reinventing Agtech Investment
The reinvention of investments in agtechs mainly requires in-depth market research and special care with the environments in which investments are chosen. Since many investors in today’s age are very keen to preserve the amount of capital they have and value liquidity as a form of security, tokenization is the main way out. This is why relying on the Whitelabel platform is an excellent choice, as it allows assets to be offered in an extremely secure and robust environment. In this way, both investors and companies wishing to take advantage of the benefits of the current era of tokenization are able to improve their position.
Study the market
Market research is the first step to reinventing investments in agtechs, because with this understanding, investors can map out which companies have the best proposals. This makes it possible to choose a location that is not only profitable, but also has very interesting objectives for choosing the ideal digital assets. Agtech owners, for their part, need to convey how promising their digital assets are in order to attract investors. As a large part of the reduction in interest in investing in agribusiness startups was caused by low liquidity, investors began to look for startups that had corrected this problem in order to maintain relationships of trust and profitability.
Digital economy
It’s no news that the digital economy is the prevailing reality in financial relations, especially when looking at the properties of a token. All the security and agility provided for agro trading are essential factors that not only attract investors, but also help agtechs to better handle their digital assets. Just look at how the development of DREX is decisive for the intensification of token trading in the Brazilian market. Thus, with this digitalized real, it will be more practical for investors to be able to safely acquire a tokenized crop, for example. Without VASPS, however, these possibilities for digital economy environments would not be possible, whether for agriculture or other sectors. The connection that VASPS create between those who provide digital assets and those interested in trading them has been a decisive factor in the rise and acceptance of this new scenario in the market.
Environmental care for applications
Observing whether the environment complies with regulations and has an adequate blockchain are some of the precautions investors will take when choosing agribusiness startups. These two points are essential because they reveal whether the place is committed to legal matters and whether it will offer the ideal transparency and security for operations. So, if you are the owner of one of the agribusiness startups or are interested in managing assets of this nature, the Whitelabel platform is a very promising option. With all the security offered by blockchain technology, this site is very reliable for managing your digital assets with autonomy and quality. This whole scenario means that investment advisors tend to be more sought-after professionals. After all, the constant demand from investors and their desire to make more careful investments will mean that many will want to be accompanied in their choice of digital assets.
How to Find Better Liquidity in the Market?
The search for better liquidity in the agribusiness startup market comes about through a good migration to tokenization. To do this with the best quality, create an account with BLOCKBR and have access to the security and practicality that the world of asset tokenization offers today.
Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.
The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.
