If Alberta startups have their way, the farming industry will never look the same.
Agricultural technology firms are cropping up across the province as companies look to optimize farming and meet clean-tech goals.
Let’s take a look at regional funds targeting agtech innovation as well as some sector startups securing capital or otherwise accelerating.
Carrot Ventures
Calgary venture capital firm AVAC Group recently announced the launch of a new $15 million venture capital fund called Carrot Ventures.
The fund will focus on investing in Canadian agricultural technology startups.
Instead of investing in existing businesses, Carrot sources and vets new technologies, recruits experienced leadership, and creates new companies around the tech and talent. Additionally, Carrot Ventures will lead the first round of financing for these startups.
“We are excited to provide inventors with a third option as they consider commercializing their technologies,” said Warren Bergen, President of AVAC.
The ultimate goal of Carrot Ventures is to maximize shareholder value by creating new companies focused on solving real market problems in the agricultural technology sector. This approach offers holders of AgTech IP a new option to commercialize their technology, and provides syndicating investors with a stream of compelling startups in which to invest.
By putting novel technology in the hands of professional and experienced leadership, Carrot Ventures aims to ensure that these new companies are properly structured and financed for long-term success.
Cellar Insights
Carrot Ventures launched a company, Cellar Insights, as part of its AgTech company formation model, in May.
Cellar Insights is an AgTech startup that uses a combination of sensors and cloud-based algorithms to remotely monitor potato health during long-term storage. The company aims to reduce food loss and optimize the quality of crops post-harvest by offering predictive models and management insights to farmers.
“Reducing food loss and optimizing the quality of crops post-harvest is an issue of worldwide importance,” says Martin Vetter, a venture partner with Carrot. “Unfortunately, potatoes and other root crops—such as carrots and onions—experience significant losses during storage. Effective storage management practices are vital, and we believe Cellar Insights offers a compelling solution.”
Potato storage practices vary widely in levels of sophistication globally, and losses can be as high as 25 percent. Cellar Insights aims to offer farmers a reliable tool for remotely monitoring and managing the health and value of their stored root crops.
Terry Sydoryk, a technology industry leader with 30 years of experience, has assumed the role of Founder and CEO for Cellar Insights. His experience makes him an ideal fit to lead Cellar Insights, according to Carrot.
“Starting out with a vetted technology, a global market opportunity, and a committed lead investor is very compelling,” said Sydoryk. “The Carrot investment model and their involvement will accelerate our path to market considerably.”
Cellar Insights will commence its path to commercialization immediately, including recruiting farmers and potato processors to participate in field trials this year.
The51 Food and AgTech Fund
The51 Food and AgTech GP announced this year the closing of $30 Million for a fund targeting Pre-Seed to Series A investments in founders pioneering food and agriculture technologies.
Lead Investor Farm Credit Canada was joined by Alberta Enterprise Corporation and National Bank of Canada, family foundations and offices, and individual accredited investors from agri-business, farming, and industry backgrounds.
“We are in the midst of several seismic events that are defining the world we live in,” says Alison Sunstrum, Managing General Partner of The51 Food and AgTech Fund. She cites COVID-19 aftershocks, “conflict between two agricultural superpowers, and climate change are affecting the world’s food supply.”
Sunstrum believes that investing in agricultural technology “will enhance productivity, reduce waste, mitigate climate change, and create new markets and job opportunities.”
Describing farmers as “stewards of the land for the next generation,” the backers behind The51 Food and AgTech Fund believe it is now necessary to be using technologies that increase efficiency, improve decision-making, and reduce cost.
“The demand on the agriculture and food industry is growing quickly and we need to meet the need with new ideas, innovations and technology,” affirms Rebbecca Clarke, vice-president of FCC Venture Capital and a fund partner. “This fund will accelerate our ability to get those new, transformational technologies to Canadian producers.”
The51 Food and AgTech Fund I is aiming for a total capital size of $50 million.
The51 has invested in an array of Alberta firms already, including Calgary construction tech startup Mercator AI, which secured an oversubscribed seed round in March.
THRIVE Canada Accelerator
The THRIVE II Canada Accelerator announced their 2023 cohort and six Calgary-based companies made it through their rigorous selection process.
Thrive’s program accelerates sustainability, innovation, and technology across the industry. Companies were selected for their potential to disrupt traditional farming practices, promote industry sustainability, and reduce environmental impact while giving farmers the tools to increase yields and productivity.
AgGene has developed a proprietary technology called GAP that utilizes genome editing to increase protein content in plant tissues, allowing for the development of high protein crop varieties.
Agriplay specializes in converting under-utilized or underperforming commercial real estate assets into productive indoor vertical farms. Their growing systems bring new life to commercial buildings while supplying local communities with access to a wide variety of fruits and vegetables, solving food insecurity issues.
Hempalta uses post-cultivation hemp fibre stocks to create game-changing consumer products for food preservation, gardening, pet-care and industrial industries. Their marquee product is the Hemp Fresco, which slows the spoilage of fruits and vegetables.
Knead Tech is a software company that addresses the global challenge of food waste by enabling food redirectors to streamline food redirection, saving time, cost, and increasing the pounds of food rescued. The technology automates the supply chains, making it more efficient and effective in rescuing food and reducing waste.
OneCup AI’s BETSY, Bovine Expert Tracking and Surveillance, is a facial recognition technology for animals that can be used to track their health, growth, nutrition, activity, and phenotypes. BETSY can be used for a variety of species and breeds such as cattle, sheep, bison, pigs, goats, and dogs. BETSY proactively notifies ranchers of any emergency situations, such as a calf in breach or a predator in the yard.
Soilgenic is developing a suite of Enhanced Efficiency Fertilizer Technologies for Nitrogen fertilizers. The suite of patents include new innovations that significantly improve application, product performance, and lower overall cost for both upstream manufacturers and downstream retail applications.
AgTech Skilling
Considering a first step toward a career in agriculture technology?
Join a new training program: the Automation and Digital Agriculture Specialist Program from Palette Skills.
Recently launched in Alberta, this 130-hour program is designed to equip you with the latest industry knowledge and skills. You’ll learn from industry experts in technologies such as IoT, drones, AI, robotics, and big data.
You receive hands-on training and gain professional skills in project management, business development, problem-solving, and team-building.
Apply now for the upcoming Alberta and Saskatchewan cohort from June 12 through August 4, for only $150.
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