A Guide to
Startup Resources
for Agriculture and
Food Technology
Innovation
Bridging the gaps
between innovation,
investment, and business
Written by AgThentic in collaboration with
Contents
1
4
9
11
14
15
| WhyDoestheFoodandAgriculture
Technology/Innova?onLandscape
NeedSupport?
| ProposedCategoriesandDefini?ons
| LandscapeOverview
| InsightsandGaps
| Conclusion
| Appendix
WhyDoestheFoodandAgricultureTechnology/InnovationLandscapeNeed
Support?
Thefoodandagricultureindustryisundergoingunprecedentedchanges.Asthe
leastdigitizedindustryintheworld,accordingtoMcKinsey,theindustryislongdue
anotherrevolution,andthereisapressingneedtoevolvethefoodsystemsoitcan
supportfuturegenerations.Wearenowonthecuspofthatrevolution.
Entrepreneurs,investors,policy-makers,andcorporationsfromallcornersofthe
globearegettinginvolved,culminatingin$4.6billionofventureinvestmentintothe
sectorin2015.
Whilethefundingoptionsforstartupsareskyrocketing,therearestillchallenges.In
particular,startupsmustovercometwokeychallenges,orsupportgaps,onthepath
fromfoundationalresearchtoindustry-widediffusion.
Gap
Gap
Science/R&D
Startups
Companies
Thefirstgapexistsbetweenthescienceandbasicresearchthatoccurswithin
universitylabsandcommercial,sellableproductsandservicesthatfarmerscan
utilize.Billionsofresearchdollarsarespenteachyeartodeveloptransformative
technologiesandscientificbreakthroughs;yetsupport,includingbutdefinitelynot
limitedtocapital,isnecessarytotranslatethisresearchintoviablestartup
businesses.
Thesecondgapexistsbetweenagriculturestartupsandestablished,sustainable
businesses.Since2013,$9.65billionhasbeeninvestedinagtechstartups,with
fundinglevelsgrowingexponentiallyeachyear.Whileit’sstillearlydaysforagtech
investments,therehavebeenafewsuccessfulventureexitsinthesector.The
ClimateCorporation,adigitalagriculturecompany,andBeckerUnderwood,aseed
technologycompany,werethesector’sfirstunicornsaftertheywereacquiredby
MonsantoandBASFin2013and2012respectively.It’suncertainwhatrolethe
publicmarketswillplay,butmostventurecapitalfirmsarebettingthatstrategic
acquisitionswillbetheirmainexitroute,whilesomeagtechcompaniesplanto
becomestandalonebusinesses.Eitherway,theindustryneedstoseemoreexitsto
ensureagtechstartupsremainasustainableinvestmentdestinationforventure
capitalfirms.
Thechallengeofbridgingthesegapsiscomplexandwillrequiremorethanfunding
andtechnicalexpertise.Trustandcredibilityremainbarriers.Participantsinall
roles,fromresearchersanduniversities,tocorporationslookingforthenext
disruptiveinnovation,togovernmentstryingtosecurethefuture,tofarmersand
industrygroups,needclarityonhowtobestgetinvolvedandeffectivelycollaborate.
1
Inotherindustries,like
softwareandeven
hardware,ecosystems
likeSiliconValleyhave
enabledresearchersto
connectwith,oreven
become,the
entrepreneursand
investorsthatcanthen
turnbasicscientificinsightsintotransformativebusinesses.Incontrast,research
andindustryexpertiseinfoodandagriculturehasremainedinsideofuniversityand
corporatelabs.Theindustryisstrugglingtobringagreaternumberofthese
innovationstomarketandtoscale.
Resourcestosupportfoodandagricultureventuresinbridgingthesegapsare
emerging.Atthetimeofthisreport,wehaveidentified91resourcesdedicated
specificallytofoodandagriculture.Theseresourcesrangefromacceleratorsto
incubatorstoventuredevelopmentorganizations(VDOs).
Agriculturalresearchinvestmenthasalwaysbeenacornerstoneof
governmentinvestmentandyethasbeenanunderexploredareafordeal
9low.Thislackofinvestmentdepthisdrivenpartiallybythefactthat
researchinagricultureisoftendisconnectedandwithoutthevisibilityof
complementarytechnologysuitesandexpertise,developmentisoften
undertakeninavacuumwithonlyonepieceofthepuzzle.Ithasalso
beenlimitedbythefactthatthetalentpoolofag-entrepreneursand
sophisticatedinvestorswithdomainexpertisehasbeenlimited.
–Kapyon(VDO)
ResourceCategoriesbyNumberandPercent
ofTotal
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
39
4
Accelerator Corporate
Incubator
7
Incubator
7
8
Network/ PitchEvent
Ecosystem
15
11
Prize
VDO
Throughdifferentapproaches,theseresourcefocusoncreatingandsupporting
successfulfoodandagriculturetechnologycompanies.Somefocusonproviding
funding,whereasothersfocusonfosteringcollaborationbetweenscientists,
engineers,famers,entrepreneurs,andinvestors.
Whileresourceswillundoubtedlyhelptofillcriticalgapsinthecontinuumfrom
ideatoimpact,thereisstillsignificantconfusionaroundwhatexactlytheyalloffer
2
andtheterminologyusedtodescribethem.Theindustrylacksacommonlanguage
todescribeanddifferentiatetheseresources.
Thisreportlaysoutaproposalforhowtodefinethedifferenttypesofresourcesas
theyemergeinthesector.Wedescribethecurrentlandscapeasitis,including
workingdefinitionsforcategoriesofresources,andacomprehensivelistof
resourceswithineachcategory.
Ouraimistostarttoresolvesomeoftheconfusionandtostartthediscussionon
thisgrowingecosystem.Weinvitecomments,suggestions,etc.aswehopethiswork
canleadtomoreclarity,efficiency,collaboration,andimpactfulinnovationacross
thefoodandagriculturelandscape.
TerminologyUsed
•
•
•
•
Resource:program,organization,oreventintendedtosupportearly-stage
ventures(e.g.,Food-X,FoodSystem6,AgTechAccelerator)
Category:genericclassificationforaresource(e.g.,Accelerator,Incubator)
Subsector:specificareaoffocuswithinthefoodandagriculturesystem(e.g.,
FoodTech,CPG,rowcropproductionagriculture,etc.).
FoodandAgricultureSystem:broadlydefinedvaluechain,frominputsand
productiontoprocessing,manufacturing,anddistribution.
3
ProposedCategoriesandDefinitions
Wehaveidentifiedsevencategoriesofresourcesthatcurrentlyexistwithinthefood
andagriculturelandscape,andproposethefollowingdefinitions.Intheappendixof
thisreportwehaveincludedatablethatprovidesanin-depthcomparisonofthe
characteristicsofeachcategory.
Accelerator
Definition:Setdurationprogramwhereacohortofselectedearly-stagecompanies
getaccesstoabusinessdevelopmentcurriculumandmentorand/orinvestornetwork
Resources:
33Entrepreneurs
AcceleratingAppalachia
AccelFoods
AgLaunch
AgriNEST
AgroInnovationLab
AmiusStartupPrgrm.
BitsxBites
FoodHatch
FoodSystem6
Food-X
GoodFoodBusinessAccel.
H-FARMFoodAccelerator
IndieBio
IowaAgStartupEngine
JustEatAccelerator
CanopySanDiego
NXTPLabsAgroTech
Program
PearseLyonsAccelerator
Prometheus
RevTech
SimplotIgnite
CIIE
ClimateVentures2.0
DigEatAll
FoodFuture
SKU
SkywalkerAccelerator
SproutAgritech
Sprout-X
SquareRoots
StartupBootcamp-FoodTech
StartupNextbyLandO'Lakes
TechStarsConnection
(ABInBev)
Terra
TheYieldLab
ThriveAccelerator
VillageCapital
Vitagora'sAccelerise
Acceleratorsarebyfarthemostcommonresourceinthelandscape,comprising
over40%ofthetotalresources.Acceleratorsprovideentrepreneurswithaccessto
alargepoolofresourcesincluding,butnotlimitedtoinvestors,marketing/PR,a
networkofmentorsandbusinessadvisors,andastructuredcurriculumwith
goals/metrics.Theacceleratorsinthefoodandagriculturelandscapehavelargely
adaptedthemodelusedinothertechindustriessuchasIT.Acceleratorstendto
offerasetcurriculum,lastingaround4monthsonaverage,foraselectedcohortof
startups(8-9onaverage).Accelerators,onaverage,take4-9%equityinexchange
for$50k,inadditiontothein-kindvalueoftheservicesgiventothestartup.Some
accelerators,likeTheYieldLab,offermorecapital($100k).Thesetermsaresimilar
tothetechindustry,butnotallagtechacceleratorslaunchwithsettermsfor
funding.Others,likeVitagora’sAccelerise,chargestartupsasmallfeetoparticipate
butdonottakeequity.
Therearesomesubtledifferencesbetweenacceleratorsinfoodandagriculture
andthoseintech.Somefoodandagricultureacceleratorsarelookingfor
commerciallyreadyventureslikeinthetechindustry;however,themajorityof
acceleratorsfocusonsupportingearly-stageventures(idea,seed,or“early-stage”
withoutspecifications).Further,manyacceleratorsinthefoodsystemofferremote
4
curriculumsandsomehavearollingacceptanceperiod,ratherthanafixedstart
date.
FoodandAgricultureacceleratorsaredispersedinternationally,with56%
locatedintheUnitedStates.36%ofacceleratorsexplicitlysupportabroadrangeof
startups(e.g.,bothFoodTechandAgTech),ordonotspecifyaparticularsubsector
ofinterest.Similarly,36%ofacceleratorsexplicitlysupportAgTechventures.
CorporateIncubator
Definition:Accesstocapitalandresourcesofacorporation,usually,butnotalways,
withintentionofbeingacquired
Resources:
ChobaniFoodIncubator
Coca-ColaVEB
MarriottCANVAS
TheKitchen
Corporateincubatorsareinnovationprogramsthatbringstartupsintoa
particularcompanywiththeexplicitpurposeofaddressinganeedofthecompany
oritscustomers.Essentially,corporateincubatorshelpcompaniesoutsourcetheir
R&Dinhopesofmakingtheinnovationprocesscheaperandfaster.Theestablished
companycanscoutpotentiallydisruptivetechnologies,andthenbringthese
startupsin,therebygainingcontrolandensuringtheestablishedcompanywill
benefitdirectly.Startupsbenefittoo:thecorporationprovidesresourcessuchas
physicalspace(e.g.,lab),mentorship,accesstotheirindustryexpertiseand
networks,andpossiblycapital(inexchangeforequity).Corporateincubators
providesignificantlymorefundingthanaccelerators,oftencloserto$500k.But
startupsenteringacorporateincubatormayriskappealingtoonlyonecompany
andlimitingtheirexitpotentialorcustomerbase.Corporateincubatorsinthefood
andagriculturelandscapearespreadinternationally,andmosthaveaCPGfocus.
Wehaveidentifiedfourcorporateincubatorprogramsexplicitlydedicatedto
supportingventureswithinthefoodandagriculturesystem.TwoareintheU.S.one
inIsrael,andonewithmultipleinternationallocations.Allfourcorporateincubators
arefood(ratherthanagriculture)focused.Corporateincubators,liketheUnilever
Foundry,thatmaysupportventuresinthisspacebutarenotentirelyfocusedon
thisindustry,werenotincluded.
Incubator
Definition:Physicalworkspaceorlabthatprovidessupportsuchastechnological
expertiseandmentorship;nofixedduration;rollingacceptance
Resources:
Ag-celeratorProgram
RoCRE
AgricenterInternational
UCDavis-HM.CLAUSELifeScienceInnovationCenter
Farm491
KendallCollege
Incubator
WesternGrowersInnovationCenter
5
Wehaveidentifiedsevenincubatorprograms.FiveareintheU.S.andtwoarein
theUK.AllsevenoftheincubatorsarefocusedontheAgTechsubsector,according
toourclassifications,thoughonlytwoofthefiveexplicitlymentiontechnologyasa
keycomponent(i.e.,othersmentiononly“agriculture”),andone(KendallCollege
Incubator)isopentoothersubsectorsaswell.Incubatorsoftenhaveexplicit
connectionstogrowersorgrowerorganizations,thereforeofferingservicessuchas
pilotsorfieldtrials.Manyoftheincubatorsalsohaveconnectionstouniversities
andseektoprovideapathwaytocommercializationforemergingresearch.
Incubatorssupportearlystageventures,potentiallyevenworkingattheideaor
benchstageofthedevelopmentprocess.
Network/Ecosystem
Definition:Platform,oftenvirtual,thatprovidesaccesstoresourcessuchasmentors
andinvestors
Resources:
AgFunder
Agri-TechEast
AgTechXChange
Branchfood
Coca-ColaFounders
Farm2050
RoyseLawAgTechInnovationNetwork
Virtualnetworksthatservetoconnectentrepreneurstoeachotherandto
resourcessuchasmentorsandinvestorsareemergingasalow-commitment
supportresourceforfoodandagricultureventures.Someofthesenetworksare
globalandentirelyvirtual,whileothersfocusoncreatinganinnovationhubina
particularregion.Theseventhatwehaveidentifiedsupportearly-stageFoodTech
andAgTechstartups.Intermsofsupport,theseresourcesofferevents,hackathons,
orworkshopsinadditiontovirtualservices(e.g.,newsletter,networkofmentors).
OtherthanAgFunder,whichisacrowdfundingplatform,thesenetwork/ecosystems
donotprovidefunding.
PitchCompetition
Definition:One-timeevent,usuallyfocusedonconnectingstartupstoinvestors
Resources:
AgInnovationShowcasebyLarta
FoodBytesbyRabobank
GAIAgTechWeek
InvestMidwestVentureCapitalForum
FoodFunded
FutureAgroChallenge
MixingBowlGoldenBlenderAward
WorldAgri-TechInvestmentSummit
Wehaveidentifiedeightpitchevents,sixofwhichhappenintheU.S.andtwo
thatoccurinvariouslocationsinternationally.Thepitcheventsarebroadinterms
ofthesubsectorstheysupport.
Pitchcompetitionsgivestartupsanopportunitytopresenttheirvisionand
businessplantoanaudience,usuallyfilledwithinvestorsandotherentrepreneurs.
Pitchcompetitionstypicallydonotoffermonetaryprizes;thebenefitforthe
entrepreneurisrecognitionandthechancetovalidatetheirideawiththejudges
6
andaudience.Pitchcompetitionsareone-timeevents,often,butnotalways,
occurringaspartofaconference.Sometimes,finalistsmustpassthroughmultiple
selectionroundsbeforebeingacceptedtothefinalpitchevent.Startupsare
generallyjudgedonsomecombinationoftechnologicalviability,market
opportunity,originalityoftheidea,team,andqualityofthepresentation.Frequently
investorsarethejudges.
Prize
Definition:Competition,usuallyculminatinginapitchevent,withmonetaryreward
Resources:
AccentureFairFoodInnovationAward
MITFoodandAgribusinessInnovation
Prize
AgBiotechShowcase
NetImpactFoodForward
AgriVest’sBestIsraeliAgtechCompany
Competition
AustralianAgriFoodandWine
eChallenge
SecuringWaterforFood
SyngentaCropChallenge
Fish2.0
ThoughtforFood(TFF)
FoodEcosystemaccelerator
VerticalFarmingInnovationAward
Food+CityChallengePrize
WesternGrowersAgTechInnovation
Competition
GROWBusinessPlanCompetitionby
Agri-techEast
Unlikepitchevents,prizesrewardwinnerswithcash.Theamountofprize
moneyvariesbetween$5kand$50k,thoughmostprizesoffer$5k-$10kawards.
Prizeshaveamulti-stageselectionprocess,oftenincludingamentorshipperiod
whereselectedstartupsworkwithmentorstorefinetheirideasandpresentation
skills.Prizesculminateinapitcheventwherethewinnersareselectedbyapanelof
investorjudgesoraliveaudience.Likewithpitchcompetitions,startupsare
generallyjudgedonsomecombinationoftechnologicalviability,market
opportunity,originalityoftheidea,team,andqualityofthepresentation.Prizes
oftenreceivesponsorshipfromoneormorecorporations.
Wehaveidentifiedfifteenprizeeventsinternationally.SevenareintheU.S.,and
threeareintheNetherlands.Someprizestargetveryspecificareas,suchasseafood
orverticalfarming,whileothersarebroadandopentoventuresinmany
subsectors.
VentureDevelopmentOrganization
Definition:Performscommercializationfunctionseitherasaserviceorbylicensing
IP;oftentheyareregionallyfocused,andhavetiestocorporations,universities,
and/orgovernment.
7
Resources:
AgInnovationDevelopmentGroup
Agri-FoodVentureAcceleration
Program(AVAP)
AgTechAccelerator
BioEnterprise
FlagshipVentureLabs
GreatLakesAgTechBusiness
Incubator
Kapyon
RutgersFoodInnovationCenter
SteinbeckInnovationCenter
TrendlinesAgTech
WaikatoLinkVentureIncubator
VDOsareuniquewithinthelandscapeinthattheysupportventuresatallstages,
frombenchtomarket.Forexample,aVDOmightworkwithemergingIP,licensingit
andbuildingacompany.ThatIPmightbedevelopedin-house,orsourcedfrom
externalorganizationssuchascorporateoruniversitylabs.SomeVDOsalsowork
withestablishedstartups,providingsupportintheformofconsultingservicesor
accesstogrowersforpilots.Regardlessoftheoriginofthetechnology,VDOslookto
bringaportfolioofinnovationstomarketthroughmultiplechannels.Technologies
maybelicensed,soldentirely,orspunoutintoastartup.
VDOsarealsouniqueinthattheyseektoleveragepublicfunding,for
examplebyprovidinganacceleratedpathwaytomarketfortechnologiesemerging
fromagriculturalresearchinstitutions.TheVDOmodelhasbeensuccessfulinother
industries,suchashealthcare,butthemodelisnewandthereforeunprovenwithin
AgTech.
VDOsmainlyrelyonthereturnsfromtheirportfolioofcompanies,aswellas
feesfromconsultingservices.Adiversifiedportfolioisthereforecriticaltosuccess;
however,itisalsoachallengetofindthetalentrequiredtocommercializeabroad
portfolio.SomeVDOshirethisexpertise,whileothersincentivizenetworksof
consultants.Further,bringingaproducttomarketistoughinallcases,yetVDOs
mustattractorcreatesufficientdealflowwhilesimultaneouslycontrollingcosts.
Despitethesechallenges,VDOsinfoodandagriculturehaveattractedinvestment
fromleadingagribusinesses.
WehaveidentifiedelevenVDOs,sevenofwhichareintheU.S.Tenofthe
VDOssupporttheAgTechsubsector;onesupportsCPG.
8
LandscapeOverview
SummaryofResources:
• Thereare91resourcesgloballythatarespecificallyintendedtosupportfood
andagricultureventures
• Nearly80%wereestablishedwithinthelastfouryears;27%were
establishedin2016alone
• 57%arelocatedinU.S.
• Mostresourcessupportagricultureventures.Many(30%)supportmultiple
subsectorsand/ordonotspecifywhichparticularsubsectorsareofinterest.
• Mostresourcestargetearlystage-ventures(e.g.,idea/seed)
ResourcesbyCategoriesandSubsector
40
Other
NumberofResources
35
CPG
30
FoodTech
25
AgTech
MulLple/All
20
15
10
5
0
Accelerator Corporate Incubator Network/ PitchEvent
Incubator
Ecosystem
ResourceCategories
Prize
VDO
Subsectors
Inthechartbelow,wehaveclassifiedthe91resourcesaccordingtothe
subsectorstheyclaimtosupport.Themajorityoftheresourcesincludedinthis
reportdonottargetaspecificsubsector(e.g.,CPG)ormarketvertical(e.g.,precision
agriculture);instead,theresourcesbrandthemselvesasprovidingsupportfor
“FoodTech”and/or“AgTech”startups.
WehaveclassifiedthosethatsupportbothFoodTechandAgTech,ormake
evenbroaderclaims,withinthe“Multiple/All”category.Thiscategorylargely
comprisesaccelerators.Acceleratorsoftenhavemultiplestakeholders,from
corporatesponsors,tomentors,toinvestors,totheirfund’sLPs,tothestartups
themselves,sohavingabroadareaofinterestmaybepartoftheirstrategytocater
tothesediverseinterests.Forstartups,thismayormaynotbeanadvantage.Onone
hand,adiversecohorthasabreadthofexperiencesandcanoffermultiple
9
perspectives;however,theacceleratormaynotbeabletoproviderelevant
resourcesforparticularareas.
ResourcesbySubsector
50
45
40
35
Number 30
25
of
Resources 20
15
10
5
0
Mul+ple/All
AgTechand
BioTech
FoodTech
CPG
Other
Subsectors
CPGresourceswarranttheirowncategory,astheventurestheysupportare
generallynottechnology-based,andthereforerequirementorswithdifferent
expertise.ResourcesdedicatedtoCPGventuresincludeaccelerators,corporate
incubators,andoneVDOandonePrize.
Theresourceswithinthe“other”categorysupportanumberofmorespecific
verticals,includingrestauranttech,gastronomy,alcohol,andcannabis.
Thoughsomeconsensusisemergingaroundthedefinitionofeachsubsector,for
examplefromthecategorizationprovidedintheoft-citedAgFunderbi-annual
fundingreports,thesetermsarelargelyundefinedandremainextremelybroad.
Thisisachallenge,asupstreamventures(e.g.,sensorsuitesthatenhanceon-farm
decisionmaking)facefundamentallydifferentobstaclesthandownstreamventures
(e.g.,mealkits;seaweedchips).
10
InsightsandGaps
Despitetheremarkablenumberofresourcesacrossthefoodandagriculture
landscapethatarededicatedtosupportingearly-stageinnovation,challenges
remainforallstakeholders.Herearethefivekeyinsightsgainedfromthisreport,
includingoutstandinggapsandpromisingopportunities.
1. Resourcesneedtoclearlycommunicatetheirvalueproposition
Thefoodandagricultureindustrylacksacommonlanguagetodescribeboththe
categoriesofsupportresourcesaswellasthevarioussubsectorsthatexistfrom
productiontoconsumption.Understandingthedifferencebetween,forexample,an
incubatorandVDO,orFoodTechandAgTech,isimportantasitenableseach
resourcetodifferentiateitself.Currently,websites,andevenpressreleasesand
mediacoverage,arelargelyinsufficientintermsofexplainingaresource’sunique
valueproposition,acceptancecriteria,andsubsectorsofinterest.Everyoneisusing
thesamelanguage;or,evenworse,providingverylittleexternalinformationatall.
Potentialinvestorsorcollaboratorsthereforestruggletonavigatethelandscape.
Further,eachsubsectorhasauniquesetofchallenges,andentrepreneursmust
beabletofinddedicatedsupportfortheirventures.Forexample,ventureswithin
upstreamsubsectorsmayneedaccesstogrowersoron-farmpilots,while
downstreamventuresmayneedtoworkcloselywithretailers.Go-to-market
strategies,pricingmodels,andmarketingpersonaswillbedrasticallydifferent
acrosssubsectors.Successfulresourcesmustappreciatethesedifferencesand
provideappropriateexpertisetotheventurestheysupport.
Further,asothertypesofsupportresourcescontinuetoemerge,it'snecessary
tounderstandwheretheyfitintothelandscape.Aretheyaddressingaspecificgap,
andifso,whichgap,andhowwilltheyattempttofillit?Acommonunderstanding
ofthecurrentlandscapewillhelpnewresources,andthosethinkingaboutcreating
newresources,totargetagapinthelandscapeandpositionthemselvestouniquely
addvalue.
Clarityonuniquevaluepropositions,acceptancecriteria,andareasofexpertise
willmakethematchmakingprocessbetweenstartupsandsupportresourcesmuch
moreefficient.
2. Whatisasustainablebusinessmodel?
Iftheresourcesinthefoodandagriculturelandscapearegoingtohelpcreate
impactful,commercialcompaniesoutoffoundationaltechnologies,theythemselves
mustbesustainablebusinesses.Currently,thebusinessmodelformostofthe
resourcesdependsonacombinationofsponsorshipsandgrants,consulting
revenues,andreturnsonequityinvestments.Therearechallengeswitheachof
theserevenuestreams.Forexample,sponsorshipsandgrantsaretemporaryand
notreliable,andstartupsmaynotbeabletoaffordconsultingfees.
Further,itisnotclearifraisingafundandrelyingonequityinvestmentswill
work.Aventurefundcanbehelpful:theresourcecanhirededicatedoperatorsand
paythemwiththefund’smanagementfees;theresourceitselfservesasapipeline
11
ofdealsforthefund;andventuresthatparticipateintheresourceknowthatthe
resourcehasavestedinterestinsupportingthem.However,ifthefundisnot
successful,theresourcemayhavetroubleraisingsubsequentones.Also,the
financialmodelfortheresourceisthendependentonVC-typereturnsand
timeframes.Itisnotclearifthiswillworkforallsubsectorswithinthefoodand
agriculturelandscape.
3. Competitionwithtraditional(tech)resources
Thoughonlypreliminaryresearchaboutacceleratorsuccessratesexists,data
indicatethattopprogramsareindeedvaluabletostartups(e.g.,Cohen&Hochberg,
2014;Fehder,2015).However,notopprogramshaveemergedwithinthefoodand
agriculturelandscape.Entrepreneursmaythereforebemorelikelytoapplyto
establishedresourcesinotherindustriessuchastech.Forexample,in2016theY
CombinatordemodayfeaturedfiveAgTechstartups.
Competitionisoverallagoodthing,asitforcestheresourcestoaddunique
value.But,atthis
Wechose[aleadingtechaccelerator]becauseconnectionstothefoodindustry
areabsolutelycriticalforus,butourbiggerprioritywaslearninghowtobuild
stageforfoodand
andscaleaB2B/enterprisetechcompany.Joiningamoretraditional
agriculture,too
businessacceleratorhasallowedustodevelopthemoreprofessional
muchcompetition
brandasatechnologycompanytoappealtobothlarge-scalefood
businessesandVCs.Ialsothink[beingafoodcompany]differentiatedusin
maycreatea
theapplicationprocessforsomeofthemoretraditionalaccelerators.
viciouscycle
-FoodTechStartupFounder
whereby
dedicatedfoodsystemresourcesstruggletogaintraction.
4. Wheredoinvestorsfit?
AsleadingtechVCsturntheirattentiontowardtheopportunitiesinfoodand
agriculture,morefundsdedicatedtofoodandagriculturearelaunched,andnew
formsofcapitalsuchasimpactinvestors,familyoffices,andcorporateventure
capitalfundsemerge,investorsofalltypesneedtodifferentiatethemselvesto
maintainhighqualityandhighvolumedealflow.
Onestrategyisforinvestorstogetinvolvedwiththetypesofsupportresources
outlinedinthisreport.Forexample,investorsoftenserveasmentorsandadvisors
tothestartupsinacceleratorsorVDOs.Investorsarewellpositionedtohelp
startupsrefinetheirpitchandde-riskthemselvestoattractcapital:theyknowwhat
theyandtheirpeersarelookingforinaportfoliocompany.Investorscanalso
providefinancialsupportfortheresources,liketheVCfirmSOSVwhichbacksIndie
BioandFood-X,orCultivationCapitalwhichbacksTheYieldLab.Investorsarealso
servingontheboardoroperatingteamofaresource,suchasstrategicinvestors
SyngentaandBayerservingontheAgTechAcceleratorboardofdirectors.Finally,
investors,especiallystrategicinvestors,canofferconnectionstotheirparent
companiesandaccesstoinfrastructure,distribution,orcustomers.
Investors,especiallyVCs,arealsoincreasingthespectrumofservicesthey
providetotheirportfoliocompanies.Inaway,thismakestheinvestorverysimilar
toothersupportresources,suchasanacceleratororincubator.Forexample,
SonomaBrandsreferstoitselfasa“ventureincubator”forCPGfoodstartups,and
RadicleCapitalreferstoitselfasan“acceleratorfund.”Neitherofthesetwo
12
resourcesisincludedinourcategorizationabove.Thoughadditionalsupportfrom
investorsisawelcomeadditiontothelandscape,thesenameshighlightthelackof
consensusaroundterminology,creatingconfusionforallparticipants.
5. Istheresufficientdomain-specificsupport?
Tobridgethegapsbetweenresearchandcommercialcompaniesinfoodand
agriculture,significantdomainexpertisemaybenecessary.Inparticular,thisisa
challengeforupstreamsubsectors(i.e.agriculture)giventhecomplexityofthe
natural,technical,andsocialsystemsinvolved.Thoughmanyresourcescurrently
seektosupportventuresinthisspace,therearestillafewcriticalgaps.For
example:
• Lackoffocusonsmall,butimportant,nicheareassuchasrowcrop
commodityproduction,specialtycropirrigation,andsoilhealth
• Lackofgrowerengagementacrossmostoftheresourcesinthelandscape
• Lackofphysicalinfrastructure,suchaslabspaceandin-fieldpilots
Unfortunately,evenmanyofthemost“successful”agricultureventureshave
thusfarfailedtoachievedeepmarketpenetration.GrowersmaybeusingAgTech
products,butunfortunatelytheseproductshavefailedtodemonstratesufficient
valuetoattractpayingcustomersonalargescale.Focusingonhigh-valueniches,
engagingwithgrowers,andaccessinginfrastructurearenecessary.Ingeneral,there
isalackofsupport-andcapitalinparticular-forin-fieldagriculture,asmuchofthe
fundingiscurrentlyallocatedtodownstreamsubsectors(i.e.,FoodTech,and
especiallyecommerce).Thoughthisischangingastheindustryisbeginningto
acknowledgethisgap,providingmoredomain-specificsupportforAgTechventures
isahugeopportunityfortheresourcesinthelandscape.
Finally,itisalsoworthraisingthequestionofwhetheritismosteffectiveto
providedomain-specificexpertiseattheresourcelevel.IfAgTechstartupscan,for
example,succeedbyworkingwithYCombinator,thenmaybededicatedfoodand
agricultureresourcesarenotnecessary.Perhapsfoodandagricultureventures
shouldbeworkingwithleadingtechnologyandbusinessresources,butbuilding
theirteamswithin-housedomainexpertiseorlookingforinvestorswithdomain
expertise.
13
Conclusion
Effectivesupportforearly-stageinnovationwithinthefoodandagriculture
systemiscritical.Theresourcesidentifiedinthisreporthavethepotentialtohelp
crossthegapsbetweenfoundationalresearchandindustry-widediffusionand
impact.Butwestillhavealongwaytogoandmanyquestionsremained
unanswered.
Ratherthanattempttoanswertheoutstandingquestions,thisreportis
intendedtostimulatediscussionandcollaborationwithinthefoodandagriculture
innovationecosystem.Inotherwords,wewantyourfeedback.Didweplacea
resourceinthewrongcategory?Doyouhavesuggestionsforhowtorefinethe
proposeddefinitions?Didwemissaresource?
We’dlovetohearfromyou.PleasecontactauthorSarahNoletat
[email protected].
14
Appendix:MethodologyandSummaryofCategoryDefinitions
Thisreportisintendedtoprovideanoverviewoftheavailablesupport
resourcesforstartupsinthefoodsystem.Thedatawerecollectedviacompany
websites,pressreleases,andnewsarticlesfromsourcessuchasAgFunderNews
andTechCrunch.Foreachresource,thefollowingdatawerecollected:name,
location,yearestablished,subsectorsofinterest,targetcompanystage,funding
received/costtoparticipate,cohortsize,timeline,andwhethercompaniesmust
participateinperson.Thoughwebelievethisreporttobecomprehensive,itis
possiblethatsomeresourceswereunintentionallyexcluded.
Simultaneously,weconductedareviewoftheliteratureonearly-stage
venturesupportresourcesfromotherindustries,suchashealthcare,software,and
biotech.Wespecificallyfocusedoncategorydefinitions(e.g.,incubatorvs.
accelerator).Theseindustrydatawerecomparedwithourfindingsonfoodsystem
resources,andultimatelytheexistingcategorydefinitionswereamendedas
appropriatetoderivethedefinitionsproposedinthisreport.Thefollowingtypesof
resourceswereintentionallyexcludedfromthisreport:coworkingspaces,crowd
fundingplatforms,hackathonsandotherevents,commissarykitchensandkitchen
incubators,andanyresourcesthatdonothavethefoodindustryasastatedfocus
(e.g.,TechStars).
Whilethemajorityoftheresourcesincludedinthisreportarefocusedon
providingsupportforFoodTechandAgTechventures,wehaveincludedresources
forstartupsacrossthefoodsystem,fromupstreamagriculture,includinginputsand
syntheticbiology,toconsumer-facingproducts,suchasCPGfoodandbeverageand
restauranttech.Thoughitisclearlyusefultoentrepreneurstounderstandthefocus
areandexpertiseofaparticularresource,ourfindingsindicatethatmanyofthe
resourcesthemselvesdonotprovidespecificguidanceontheirparticular
subsectorsofinterest.
Thetablebelowprovidesasummaryofthecategoriesanddefinitions
proposedinthisreport.
15
16
This report was produced by AgThentic, in collaboration with AgFunder and Ag
Innovation Development Group
AgThentic is a sustainability and innovation
consulting firm for the food system. We sit at the
intersection of big companies, entrepreneurs, and
investors, helping change agents create the food
system of the future.
Learn more at www.agthentic.com
AgFunder is an online
investment platform for
food and agriculture
technology. We help
accredited and
institutional investors
discover & invest in
technologies which
transform the agriculture
industry.
Ag Innovation
Development Group
brings a wrap-around
approach to
commercialization
including an accelerator,
incubator, farmer
network, mentor network,
venture development and
access to investment
www.agfunder.com
www.aginnovationgroup.com