Latest news with #DarrenBaccus
Globe and Mail
6 days ago
- Business
- Globe and Mail
FCC to invest $2-billion in agri-food startups
Ottawa has loaned money to Canadian farmers for nearly a century. Now Crown agency Farm Credit Canada is looking to use some of its vast resources to back innovative startups that serve the agri-food business. FCC said Friday it would invest $2-billion through to 2030 to advance agtech innovation in the country's agri-food industry. It will invest through an array of vehicles that includes funds, direct investments and other investment structures, providing equity, convertible equity and mezzanine loans to companies ranging from pre-seed startups to later-stage enterprises that serve the sector. 'There is an opportunity to increase the adoption and access to innovation of the primary producers,' said FCC executive vice-president Darren Baccus, who will oversee the program. 'There is a need in this industry for meaningful capital. Canada is so uniquely positioned to be able to do this.' Despite Canada's status as a global breadbasket, the sector attracts little risk capital. Total venture capital invested in Canadian agribusinesses totalled just $881-million over the past four years combined, according to the Canadian Venture Capital and Private Equity Association (CVCA). That is less than 4 per cent of what Canada's information and communication technology sector raised over the same period. 'It's always surprising, the lack of money that goes into agribusiness venture capital given the predominance we have in food production,' said CVCA president Kim Furlong. 'The market need is there, food security is a real thing and the technologies are there.' Canada's crop of agtech companies is modest. One of the biggest names, Farmer's Edge Inc., went public in 2021 and its stock crashed after it reported mounting losses. Majority owner Fairfax Financial Holdings Ltd. took the company private at 35 cents a share in 2024. This tech is helping Canadian farmers grow smarter, not harder Agtech startups are challenged by high capital expenditures and long timelines, said Marcus Mitchell, chief executive officer of Shire Capital Management. 'There's definitely a funding gap and I see this as an effort to de-risk deals in the sector so more conventional capital allocators have a reason to engage,' he said. Sean O'Connor, CEO of 4AG Robotics Inc., a B.C. company that is developing mushroom-picking robots, added that varying crops, soil and weather conditions in different markets make it 'challenging to find agtech that has the ability to scale in a similar way everywhere in the world.' FCC was established in 1959 to replace the Canadian Farm Loan Board as a lender to farmers. It has dabbled in venture capital on the side for years, but VC accounted for just $246-million of its $53.5-billion in total assets in its fiscal year ended March 31, 2024. Mr. Baccus said FCC's increased shift into VC came after Justine Hendricks joined as CEO in 2023 and began speaking with industry stakeholders. 'We started to hear from industry: You can do more.' he said. 'They said, 'We value what you bring to industry, that your core business is primary production, but there are opportunities for you to provide more capital solutions to this industry.'' How vertical farming can help Canada create a self-reliant food chain in an era of tariffs and climate change FCC responded by establishing a new arm called FCC Capital in 2024, and it has made nine direct investment deals that total $170-million, investing in three new funds and establishing a new business accelerator. Mr. Baccus said FCC will not lead deals but look to 'crowd in' private sector investors into domestic agtech companies. 'I think government investment for the time being is essential as we create these success stories and technologies that will help more folks say yes,' said Dana McCauley, CEO of the Canadian Food Innovation Network. FCC joins Crown agencies Business Development Bank of Canada and Export Development Canada in expanding support recently for domestic startups. Prime Minister Mark Carney has pledged to commit $1-billion in new money to a venture capital funding program begun by Stephen Harper's Conservative government.
Cision Canada
6 days ago
- Business
- Cision Canada
FCC Capital announces $2 billion investment into ag and food innovation Français
, May 30, 2025 /CNW/ - Farm Credit Canada (FCC) has committed to invest $2 billion by 2030 to advance agtech innovation in Canada's agriculture and food industry. This will direct more investment into innovative devices, instrumentation, research, and methodologies designed to improve efficiency, productivity, and sustainability. The funds will come from the organization's new investment arm, FCC Capital, a group offering capital solutions that catalyze the broader investing ecosystem and bolster growth. Launched in 2024, FCC Capital delivers an expanded offering of capital solutions to companies across the entire ag and food value chain, including investment funds and direct equity capital dispersed from pre-seed stage to growth-driven late-stage companies. In its inaugural year, it built a foundation by closing nine direct investment deals totaling $170 million, investing in three new funds, and adding a new business accelerator to its portfolio. "Canada's economic future requires an agriculture and food industry leading the world in innovation and productivity. However, until now, investment dollars have been scarce and have not scaled to meet the increasingly sophisticated needs of the sector. Through this investment, FCC is delivering on its commitment to be a catalyst and support innovation and productivity in one of Canada's most important and investable sectors," says Justine Hendricks, FCC president and CEO. This announcement comes at a time when various sources are showing that annual venture capital investment into Canada's agtech sector is lagging. In 2023, Canada's venture capital investments in the sector were cited at approximately $270 million, 10 times below the United States when adjusted for population. This low level of investment puts Canada at a strategic disadvantage. At the same time, Japan and the European Union have been demonstrating increased investments in agtech. The formal announcement was made by Darren Baccus, executive vice-president, agri-food, alliances and FCC Capital, during the Invest Canada 2025 Conference, an event run by the Canada Venture Capital and Private Equity Association. "With this $2 billion allocation, FCC will continue its long history of supporting and partnering with the Canadian ag and food industry to offer greater security and sustainability in a highly competitive global market," said Baccus. "At FCC, we're uniquely positioned to provide catalytic capital and work with stakeholders to source compelling investment opportunities. We are confident that our investment commitment to the industry will 'crowd in' capital to amplify the economic impact." About FCC FCC is proud to be 100 per cent invested in Canadian agriculture and food. The organization's employees are committed to the long-standing success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions, while creating value through data, knowledge, relationships and expertise. FCC offers a complement of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit
