This is the third blog in a series that covers the latest developments in agriculture and food-related law, including litigation, legislation and regulations.
In 2023, monetary policy and credit risks remained an ongoing concern for financial markets. Nevertheless, venture capital (VC) investment in Canadian agribusiness continued to thrive.
According to data from the Canadian Venture Capital & Private Equity Association (CVCA), VC investment in agribusiness is on track to set new records in 2023. By the end of 2023’s third quarter, VC agribusiness investment consisted of $232 million across 37 deals, just 1% behind 2022 and 6% above 2021.
Emmertech’s continued success
In 2023, the Saskatchewan-based agribusiness-oriented fund Emmertech continued to deploy capital in Canada and abroad, gaining national and international recognition.
Investments – Throughout the year, Emmertech announced several investments, including:
- TechBrew/4AG Robotics – Led a $3 million seed financing round and participated in a subsequent $17.5 million series B round for a British Columbia-based company to develop automated solutions to labour-intensive challenges in the mushroom industry.
- SwarmFarm Robotics – Led a AU$12 million series A funding round for an Australia-based company to develop and grow its SwarmBot platform and operating system, SwarmConnect.
- Vivid Machines – Participated in a US$4.3 million seed round for an Ontario-based company that develops computer vision technology for fruit growers, providing them with real-time crop data to develop early yield predictions and assist in managing contracts.
- Picketa Systems – Participated in a $1.4 million seed financing round for a Fredericton-based agtech startup that develops technology for plant tissue analysis.
- Vive Crop Protection – Participated in a $11.2 million extension of the series C financing round for an Ontario-based company that develops products aimed at enhancing the efficiency and sustainability of crops.
- ChrysaLabs – Participated in a $15 million series A funding round for a Quebec-based company that develops autonomous robotic solutions for urban agriculture, combining cutting edge technologies with artificial intelligence (AI) machine learning.
- Lucent Biosciences – Participated in a $3 million seed financing round for B.C.-based company that develops and delivers non-leaching micronutrient fertilizer for agriculture.
Partnerships – Emmertech also participated in the following partnerships:
- Partnership with C100 – In August 2023, Conexus Venture Capital, Emmertech and Cultivator strengthened connections between Saskatchewan tech startups and Canadian investors, operators and mentors from around the world by partnering with C100.
- Partnership with Farm Credit Canada (FCC) – On September 21, 2023, FCC announced its partnership with and financial commitment to Saskatchewan-based Agtech Accelerator, a venture-backed accelerator program founded by Cultivator powered by Conexus, Emmertech and Economic Development Regina. Each Canadian company selected to participate in Agtech Accelerator’s yearly cohort receives a $100,000 equity investment at intake.
Tall Grass Ventures announces investments
First launched in 2022, Calgary-based Tall Grass Ventures (Tall Grass) continued making investments in 2023. Tall Grass participated in seed financing rounds for Vivid Machines (US$4.3 million), Picketa Systems ($1.4 million), Ground Truth Ag ($4.0 million) and GeneNeer (US$1 million). In addition, Tall Grass announced the addition of Farm Credit Canada as one of its largest investors (undisclosed amount).
Other VC investments in the agribusiness sector
Some other notable 2023 VC investments in the western Canadian agribusiness sector include:
- enrichAg – US-based At One Ventures led a $6 million seed financing round for a Vancouver-based Terramera to launch a new subsidiary, enrichAg, to commercialize its novel sensing technology for soil testing and analysis.
- Croptimistic Technology Inc. – Calgary-based Forage Capital Partners led a $9.1 million series B funding round for a Saskatoon-based company to acquire CropPro and enhance its continued research and development efforts relating to soil mapping and hardware.
- Future Fields – Raised an additional $15.1 million in a seed extension financing round for an Edmonton-based biotech startup focused on using genetically engineered fruit flies to meet global demand for bioreactors.
Lawyers from MLT Aikins have assisted numerous funds, including Emmertech and Tall Grass Ventures, on both fund formation and funds’ investments. If you’re looking for investment opportunities in western Canadian agribusiness and agtech, the lawyers in our Private Equity and Venture Capital and Agriculture and Food practice groups would be happy to assist you.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.