Nearly every week, RFSI News curates the latest news in regenerative agriculture and food systems investing, plus shares some stories of our own along the way, covering the latest strategies, players, challenges and opportunities that exist in the space.
RFSI tracks investments and other capital allocations into regenerative agriculture and food systems initiatives, as well as investments and activities that can enable individuals and operations to transition toward regeneration. While we certainly don’t claim to have tracked all the deals, fund activity, and news happening across the world in this rapidly growing space, we do keep our eyes on a lot of things. We think digging into what we did track can add perspective, and over time, shed light on emerging trends.
Here’s what happened in regenerative agriculture and food systems investment in Q2 (April-June) 2025.
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Investment Highlights
Picking up where Q1 left off, Q2 2025 saw a continued slowdown in regenerative agriculture investments in the U.S., as uncertainty and disruption following the change in federal administration rippled through both the agriculture and investment sectors. A lack of clarity around key policies—ranging from tariffs and grant funding to programs supporting climate-smart transitions, school food initiatives, local and regional agriculture, and diversity and inclusion—left both investors and operators in a state of limbo, unsure of how or when to move forward.
Despite this turbulent environment, RFSI tracked 39 investment deals in Q2 totaling over $343 million—on par with many quarters over the past two years. However, the types of deals and the countries in which they originated have shifted. Read on to explore the emerging trends shaping the regenerative food and agriculture investment landscape.
Deals by Type of Capital: As expected, venture-backed deals maintained their position as the largest proportion of overall deals tracked (by deal count) – maintaining since Q1 a consistent 46% of total deals tracked, representing 18 deals and more than $113 million (noting that some deals did not disclose financials). Equity investments, including acquisitions, also stayed constant in the number two position and representing 26% of deals in Q2. Philanthropy/grant funding and debt represented 13% and 10% of deals, respectively.
Q2 2025 Percentage of Deals Tracked by Type of Capital
Note: Deals include investments into companies, programs, projects and individuals from diverse investors and grant makers. Total amount reported is not a claim of actual investment totals as it does not account for undisclosed financials and deals.
Deals by Region: Over the past four quarters – from Q3 2024 through Q2 2025 – we’ve seen a drastic shift from one global leader to another in regenerative agriculture and food systems investment, by region and deal count. Through 2024, the United States had been a clear leader in deal activity each quarter, with Europe a distant second. In Q3 2024, for example, the US accounted for 67% of deals and Europe accounted for 24%. But in Q4 2024 and Q1 2025, investments tracked in the US declined, while Europe started a light uptick. This kept the two essentially locked in a dead heat – together representing 75-80% of deals. However, as Europe continued to increase its activity, US deals continued its slide, driven in large part by the uncertainty brought about by domestic political activity. In Q2 2025, Europe accounted for 41% of deals, while the US only accounted for 21%, followed by Latin America with 13% of deals. It’s hard to say if this shift will hold longterm but given the uncertainty that remains at the start of Q3, we expect it to hold for a while yet.
Q2 2025 Percentage of Deals Tracked by Region
Top Investment Theme: Investments into farmland transition and practice adoption led all other investment themes in Q2 with 31% of deals tracked addressing these shifts. Biological-based input innovation was a distant second representing 15% of deals. The remainder of deals were spread across many other themes including supply chain/processing, CPG & retail, and carbon market infrastructure.
Fund Raises and Closes
In addition to the deals tracked above, RFSI tracked more than $747 million in raises and closes for regenerative funds and “regen adjacent funds” – that is, funds that are working beyond simply sustainability toward regenerative outcomes but may not be wholly regenerative or it may not be the fund’s entire focus.
Among these, SWEN Capital Partners announced it had raised €160 million in the first close of its Blue Ocean 2 fund, which invests in startups working on regeneration of our ocean biodiversity. Almost immediately following this announcement, the private equity investor announced the launch and first €40 million close of a new fund, SWEN Terra, which will invest in regeneration and soil restoration.
Another launch of interest is Finnfund, Finland’s development finance institution (DFI), completion of a multi-tranche green and sustainable bond issuance totaling almost €200 million, attracting investment from pension funds and insurance companies. The funds will support investments in areas such as renewable energy, sustainable forestry and agriculture, financial services and digital infrastructure.
New Funding Vehicles & Platforms Launched
In Q2, we continued to track funding vehicles and platforms dedicated to regenerative agriculture, indicating the increasing recognition of the need to address regenerative through investment and often the need to address it with new financial tools. New vehicle announcements in Q2 included:
Seedling Investments has launched a new fund to support the transition of New Zealand’s dairy sector. The Next Gen Agri Fund – which is targeting NZ$150 million is designed to accelerate the transition of the country’s dairy sector toward lower emission farming, using solutions that address critical challenges such as sustainability, rising operational costs, and succession pathways for young farmers.
HeavyFinance, a climate finance company focused on transitioning European farmers to regenerative agriculture, has rebranded as InSoil. The rebranding aligns with the company’s broader focus on soil health and carbon credit generation. As part of its growth strategy, InSoil has launched a €50 million private credit fund to support projects with measurable climate impact. The European Investment Fund (EIF) has committed €20 million to the fund as a cornerstone investor.
In addition, Mekong Capital, a private equity firm focused on Vietnam, announced its intentions to launch a regenerative agriculture fund in 2026 with a target capital of up to US$200 million, with a companies that use data technologies to improve performance.
Regen Adjacent Investment Vehicles and Platforms
At the end of June, stockholm-based Norrsken Foundation announced that it will commit €300 million to investing in European startups using ‘AI for good’ to solve challenges in climate, health, food, education, and society. The funds will be drawn from the collective liquidity pool of Norrsken VC, Accelerator, and Launcher. The funds’ criteria are linked to UN Sustainable Development Goals (SDGs), that assess impact and sustainability across the entire investment process, from deal screening, and due diligence to deal structuring and exit.
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