New agricultural and food technology venture fund Cultivate Ventures has closed a successful first funding round, including raising $3 million from seed investor Foundation for Arable Research.
With a diverse range of funding partners that include growers and growers from across New Zealand and high-net-worth individuals, fund manager Northington Partners is targeting $40 million in total.
Plans are to invest in a portfolio of 10 to 15 high-growth agritech and food beverage companies over the next five years.
Alison Stewart, CEO of the Foundation for Arable Land Research (FAR), said her organization's goal is to enhance the profitability of the arable sector while preserving and enhancing the natural environment for the future.
“New knowledge, tools and technologies are critical to the successful growth of our industry, and we see Cultivate Ventures as a key way to help us achieve this.”
Greg Anderson, fund manager and managing director of Northington, said the fund would play a critical role in New Zealand's agricultural sector, delivering and catalyzing further investment in innovative, high-growth agritech companies, helping to address challenges raised by the likes of climate change. Labor shortages, rising costs and supply chain issues.
The fund was welcomed by Brendan O'Connell, CEO of AgriTech NZ.
“The Fund is a very welcome and needed addition to New Zealand's investment landscape for agricultural innovations.”
He said the recent Global Agritech Innovation Summit highlighted the tremendous pace of change happening globally in food systems, and the need for New Zealand to continue to innovate.
The fund's first investment has already begun with Ruminant BioTech, a company focused on a bolus-based delivery system for methane mitigation, with the fund's second investment completed late last year and scheduled to be announced soon.
The Fund's investment decisions are overseen by an independent Investment Committee, chaired by FAR and former AgMARDT Board Member Richard Green.
Green said the food and fiber sector was entering a period of significant change, with the fund well placed to benefit from this.
“Bold decisions and investments must be made if New Zealand is to continue to have a sustainable and thriving food and fiber business into the future,” he said.
Industry consultants have some well-known names, including Rangitikai farmer Hugh Dalrymple, Dr Caroline Saunders of the University of Lincoln, and Maury Leland Pineau of Left Foods.
Several high-net-worth individuals, farmers and farmers are also conducting due diligence to invest in the fund's second fundraising later this year.
