Latest news with #agtech
Globe and Mail
2 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.
Yahoo
3 days ago
- Business
- Yahoo
FCC Capital announces $2 billion investment into ag and food innovation
REGINA, SK, 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 FCCFCC 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 SOURCE Farm Credit Canada View original content to download multimedia:
Fast Company
6 days ago
- Business
- Fast Company
This vertical farming startup is bringing fresh produce—and international competitors—to the Dubai desert
When Sky Kurtz set out to grow produce in the desert via vertical farming in 2016, laying the groundwork for what became Dubai-based ag-tech startup Pure Harvest Smart Farms, 'People thought we were crazy,' he says. 'I was fearful, I would never get off the ground.' But Kurtz's came at a time when the UAE was beginning to take the idea seriously and companies like Pure Harvest began cropping up. Over the past nine years, though, Pure Harvest Farms has become one of the sector's biggest players. It has raised more than $450 million in funding, according to market analysis company PitchBook, and grows an array of crops that includes tomatoes, green vegetables, and berries in temperature-controlled facilities. With farms strategically located throughout the UAE, the company boasts the capacity to produce over 12 million kilograms of crops annually. Despite the competition, Pure Harvest has distinguished itself as the dominant player in the country's indoor farming sector. Unlike other ag-tech companies which were designed for temperate climates, Pure Harvest developed technologies specifically built to withstand the harsh climates of the Middle East. Unlike other ag-tech companies that focus on niche produce and cater to premium markets, Pure Harvest sells a wide range of produce and supplies to major supermarket chains across the country. by 2026 whereas AeroFarms launched the world's largest indoor vertical farm in Abu Dhabi in 2023. The final deadline for Fast Company's Brands That Matter Awards is Friday, May 30, at 11:59 p.m. PT. Apply today.
ABC News
10-05-2025
- Business
- ABC News
The regional Australian city of Orange is hoping to become the next Silicon Valley
A regional Australian city, famous for its food and wine, is now hoping to be the world's next Silicon Valley. Orange, in central west New South Wales, is positioning itself as an innovation and agricultural technology (ag-tech) hub, with a growing smorgasbord of entrepreneurs choosing to base themselves in the district. "The running joke at the moment is that Orange is the next Palo Alto or Silicon Valley," Hamish Munro, founder of digital start-up Pairtree, told 7.30. Mr Munro is a former farmer who launched Pairtree — a digital platform that aggregates data — in 2018. He says Orange's proximity to Sydney and the presence of the NSW Department of Primary Industries, Charles Sturt University and University of Sydney Rural Medical School make the district an attractive location for companies like his. It's also close to a variety of agricultural commodities such as horticulture and viticulture which benefit from the cooler climate and rich, volcanic soils from the nearby dormant volcano, Mount Canobolas. The surrounding area is flatter and warmer, meaning it can sustain broadacre cropping as well as sheep and cattle production. One of the biggest jewels in the city's crown is bio-manufacturer Cauldron. The company's global ambition is to tackle food insecurity. "The reason we exist is we're starting to understand that there's scarcity in supply chains," Cauldron CEO Michele Stansfield said. "We're seeing this insecurity around the world in food supply chains, fuel supply chains, chemical supply chains. "All the very large companies are looking at ways to shore up supply chains." Cauldron uses fermentation to create microbes that form the foundation of products like laboratory-made milk and chicken. "The molecules being created from this process are 'nature identical' to what has been created, be it by the cow or the chicken," Ms Stansfield said. "We are absolutely looking to supplement or stretch supply chains, so the food ingredients we use would be used to create 4 billion pieces of cheese instead of 3 billion pieces of cheese. Cauldron has secured contracts with the United States' Department of Defense and Queensland government to build bio labs, but Ms Stansfield says there are no plans to leave Orange. "That's where we screen the clients, we develop the technology, but this is a global problem … and we will locate our factories where it makes economic sense." Cauldron's start-up stablemates include Loam Bio, which grows fungi to help capture more carbon in soil, and Green Timber Technology, which has installed robots in part of Orange's old Electrolux fridge factory to build timber frames for homes. Craig Murphy coordinates regular networking meetings for local entrepreneurs called Innovate Orange, and says the city's smaller start-ups are capitalising on the foundations created by Cauldron and Loam Bio. "We've all tried to kind of hack and build things in our garages and stuff like that, but it's also to bring commercial folks along as well," Mr Murphy told 7.30. "I think if you're looking for a city or a location maybe to bring your ag-tech start up, then you've got to look at what they're doing and go, 'well, that's where I probably should be going.'" Despite the efforts of Innovate Orange, there are concerns a more coordinated approach is needed to allow the city's innovation and ag-tech sector to realise its potential. it is something Ms Stansfield is conscious of and she wants to get the next generation involved. "I'd love for there to be some sort of formal structure that includes the university students a bit more and that, I think, would set us apart," Ms Stansfield said. The federal government wants Australia's agricultural industry to be worth $100 billion by 2030 and considers ag-tech to be key in reaching this goal. Commonwealth grants are available but they are highly competitive and many start-ups are self-funded. "We've got hundreds of thousands of dollars invested out of our personal savings, so you know [the] stakes are really high," startup owner Rony Stephen said. Mr Stephen was living in Sydney's Bondi when he holidayed at a farm stay at Mandurama in the NSW central west in 2021. His background in technology and fascination with farm life inspired him to create a range of gadgets. He worked with farm-stay owner Grant Molloy to design sensors to monitor water levels on troughs and tanks, and GPS ear tags which allow farmers to track their livestock on an app. Mr Stephen eventually moved to Orange to establish his company, Sense My Farm. Mr Stephen though has had to give himself a deadline of the "next year or so" for it to succeed. "Right now we're fully boot-strapped, so there's a limit to how much we can personally invest," he said. Mr Munro hopes companies like Mr Stephen's and Mr Malloy's get additional support to ensure they survive. "Australia is a net exporter of agriculture projects, mining, primary produce, and the real opportunity is really exporting tech," Mr Munro said. Watch 7.30, Mondays to Thursdays 7:30pm on ABC iview and ABC TV Do you know more about this story? Get in touch with 7.30 here.
