EIF Backs €100 Million Agrifood Tech Fund for Europe

Irish Enterprise Minister Peter Burke welcomed the investment, saying it reflects the strength of Ireland’s agrifood innovation ecosystem and its growing role in developing solutions for sustainable food production.

The European Investment Fund has committed €25 million to Yield Lab Europe Fund 2, a pan-European venture capital fund focused on early-stage agrifood technology companies working on more sustainable and productive food systems. The commitment, backed by InvestEU, is expected to help mobilise €100 million in total investment for the sector. Around 30 percent of the fund will be invested in Ireland, with the remaining capital directed to agrifood startups across Europe.

The announcement was made in Dublin during a visit by EIB Vice President Ioannis Tsakiris for the Ireland-EIB Financing Group ministerial meeting. Irish Enterprise Minister Peter Burke welcomed the investment, saying it reflects the strength of Ireland's agrifood innovation ecosystem and its growing role in developing solutions for sustainable food production.

Funding targets agriculture's innovation gap

Yield Lab Europe Fund 2 will invest in Seed and Series A companies developing technologies across animal health, alternative proteins, aquaculture, crop and soil health, horticulture, precision agriculture and the circular economy. Early-stage agrifood startups have often struggled to secure venture capital, particularly companies working upstream in the agricultural value chain where development timelines can be longer and adoption can depend on farmers, processors and supply-chain partners.

The fund is designed to provide capital at a critical stage of growth, with initial investments expected to average about €750,000. Two-thirds of available investment capital will be reserved for follow-on rounds, giving promising companies support beyond their first funding stage. Yield Lab Europe Managing Partner David Bowles said the EIF's backing marks an important moment for the fund and for Europe's wider agrifood innovation sector, adding that the support will help companies scale across Europe and beyond.

Climate-focused fund puts sustainability at its core

The fund also seeks to address a major imbalance in climate investment. Agrifood systems account for a large share of global greenhouse gas emissions, yet the sector receives a much smaller portion of climate technology venture capital. Yield Lab Europe Fund 2 has been classified as an Article 9 fund under the EU's Sustainable Finance Disclosure Regulation, the highest sustainability category. It has set a 90 percent Climate Action and Environmental Sustainability investment target, placing measurable impact at the centre of its investment strategy.

The fund will prioritise companies with proven products, strong intellectual property and clear commercial pathways, especially those helping farmers and agrifood businesses access technologies that improve efficiency, resilience and sustainability. The new fund builds on Yield Lab Europe's first €55 million fund, launched in 2019, which made 32 investments across eight countries and backed companies working in precision agriculture, methane reduction and livestock health.

With the new EIF-backed fund, Europe's agrifood innovators are expected to gain stronger access to the finance and strategic support needed to grow technologies that can strengthen food security, reduce emissions and improve the competitiveness of the farming sector.