If you’re an agriculture startup founder in Iowa, where do you get funding? Mikayla Mooney of Ag Startup Engine joins us to discuss why Iowa is leading in ag, but still catching up when it comes to investment for ag-focused startups and companies.
Iowa has some of the best soil in the world and we see farming and regenerative organic food lead the national headlines, but are we truly grasping the opportunity? Mooney explains how startups are using food trends as tail winds, but haven’t quite changed to adopt the trend yet. Are we behind and how do we get ahead?
Iowa holds the second-highest agricultural output in the United States, yet the state’s burgeoning ag-tech sector faces distinct capital and structural hurdles. Mooney highlighted how localized venture capital is driving innovation across the agricultural value chain.
Unlocking Livestock and Grassroots Capital
While traditional coastal venture capital firms primarily prioritize rapid-scaling B2B software, agricultural technology demands patient capital adapted to cyclical timelines. Mooney noted that while livestock represents nearly half of U.S. agricultural value, it remains largely neglected by mainstream investors due to species-specific nuances. To bridge this gap, AgStartup Engine recently closed a $7 million fund and allocated roughly 45% of its portfolio to livestock and animal health startups.
“For us at Ag Startup Engine, like we see livestock as a huge overlooked opportunity,” Mooney explained, emphasizing that their investor base consists of local farmers and producers who provide domain expertise. She added, “We tend to take a much more like grassroots approach, and we want our producers, our farmers around the table helping evaluate the companies, being those first partners, advisors to really help companies scale.”
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Building Infrastructure for Ag-Tech Leadership
Beyond capital, physical infrastructure remains a critical bottleneck for regional startups. Mooney pointed out that early-stage founders frequently struggle to secure wet lab space or heavy-duty shop space large enough to service combines and sprayers indoors.
Despite these constraints, Iowa offers unmatched ecosystem advantages, from the legacy of establishing the nation’s first cooperative agricultural extension in Sioux City to cutting-edge ventures like real-time soil-sensing startup TerraBlaster. “If you’re building an ag tech startup, Iowa’s the place you wanna be,” Mooney stated, urging the state to double down on its primary economic strength.