On the 13th, the Ministry of Agriculture, Food and Rural Affairs announced that the Agricultural and Food Fund will expand its investment in new industries in 2026. The plan reflects regulatory reform requests from both operators and investors, discussed by the Investment Review Committee and the System Improvement Council, and will begin revising the system. In the food tech sector, the previous investment target of "start-ups less than seven years old" will be expanded by abolishing industry age restrictions. This will strengthen support for scale-up, including follow-up investments. The plan also addressed the "initialization and commercialization" aspects of the Youth Enterprise Growth Fund.
The Implications of Abolishing Restrictions on Food Tech Industry
The abolition of the industry-level restriction is noteworthy because it provides access to funding to advanced foodtech companies. Previously, the early-stage-focused support structure often created a funding gap during the expansion phase after market stabilization. Allowing follow-on investments can fill this gap and serve as a mechanism to support scale-up efforts. Broadening the scope of investment targets broadens the scope of deal sourcing for asset managers, while providing portfolio diversification and risk management options for investors (LPs).
Foodtech encompasses all aspects of technology-based innovation in the food and agricultural industries. Even after commercialization of products and services, additional capital is required at each stage, including advancements in production and distribution and market expansion. Broadening the scope of regulatory approval for mother funds to include follow-on investments would help ensure continuity in corporate growth. However, the specific investment scale, detailed criteria, and selection process have not been disclosed, and the design of the actual execution phase is expected to determine market impact.
Investment system overhaul and the ripple effect of expansion in 2026
The Ministry of Agriculture, Food and Rural Affairs announced that it will reflect requests for regulatory improvement raised through official channels, such as the Investment Review Committee and the System Improvement Council. This is seen as an attempt to reduce institutional constraints on operators and improve the investor participation environment. If the policy of expanding investment in new industries is aligned with the system improvement plan, it can strengthen investment continuity from initial stages through commercialization and follow-up investments.
The Youth Enterprise Growth Fund's reference to "initialization and commercialization" can be seen as an attempt to systematize support for early-stage startups during the market entry and product/service commercialization stages. As support for early-stage companies becomes clearer, the roles of the entire mother fund will become more clearly defined. With the abolition of restrictions on food tech industry experience, this could potentially improve the flow of funds throughout the ecosystem.
This policy signals a policy shift toward full-scale investment in new industries in the agricultural and food sector, providing institutional predictability to operators, investors, and companies alike. For follow-up investment approval and regulatory reform to lead to tangible results, transparency in review and implementation, along with performance measurement indicators, must be supported.
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