If I was a farmer and wanted a low-tech tractor that would be reliable into the future, why would I gamble on a startup when I could buy a Kubota tractor from a company that has been in business for 136 years, with an established dealer and parts network? I would certainly opt for the Kubota.

I’m not a farmer, but sometimes I sell generators. Even today, some specs only allow CAT and Cummins, even though Generac and Kohler have been around for decades and are perfectly good options, they haven’t been around as long as CAT and Cummins.

When purchasing capital equipment, some customers want to buy from a company with some longevity instead of a random startup, even if it costs more.

I’m always highly skeptical of startups in mature industries like farming (~10,000 years old, or hundreds of years for mechanized agriculture) with many established players already operating. I saw an article in the last year or two about a small directional boring machine from a startup company that claimed to be advancing the industry, but multiple manufacturers like Ditch Witch already manufacture and sell the exact same piece of equipment, they’re just not claiming to be revolutionary to attract investor capital.