Accelerating Growth

ProducePay's Latest Partnership, Saudi Arabia's AgriFood Tech Alliance & More!

Author

Sepehr Achard
July 12, 2024

Good morning, readers!

Welcome to the newest edition of AgTech Digest, where we provide you with the latest updates from the world of agricultural technology!

Estimated Reading Time: 7 - 10 minutes

STRATEGIC PARTNERSHIPS
ProducePay & MAVRK Capital Partner To Fund Predictable Commerce Programs

ProducePay partnered with MAVRK Capital. This collaboration aims to enhance the Predictable Commerce Programs for fresh produce, with MAVRK Capital committing an initial $500 million in forward flow capital to support top growers globally.

Leadership Commentary

“We’re singularly focused on identifying new ways to help growers and marketers expand while minimizing the uncertainty and volatility that has historically held the fresh produce industry back. With the MAVRK Capital partnership, we’re unlocking industry-wide growth by offering farmers predictability in the form of capital, informed by decades of fresh produce experience, and with direct ties to buyer commitments,” said Patrick McCullough, CEO of ProducePay.

Financial Mechanisms for Growth

Through this partnership, Four Star Fruit, Inc. will provide growers participating in Predictable Commerce Programs with a financing mechanism that ensures committed demand and pricing. This predictability reduces the financial risks associated with harvesting, ultimately lowering the cost of capital across the supply chain.

DISCOVER THE COMPANY IN COLLABORATION WITH VERTICALFARMS HUB
NEC X Accelerates AgTech Innovation with Elev X! Programs

Shintaro Matsumoto, President & CEO. Image provided by NEC X

Overview of Elev X! Programs

NEC X, a Silicon Valley-based innovation accelerator and venture studio, is driving AgTech innovation through its Elev X! programs. Backed by the extensive IT and networking expertise of NEC Corporation, NEC X offers two main programs: Elev X! Ignite and Elev X! Boost. These programs are designed to transform visionary ideas into successful commercial ventures by providing startups with collaboration, funding, engineering expertise, and comprehensive support services.

"Elev X! Ignite is our approximately nine-month program that provides early-stage founders with close collaboration focusing on customer discovery and validation, in addition to up to $200K in funding and NEC’s robust support resources," explained Shintaro Matsumoto, President & CEO of NEC X. "Graduates of Elev X! Ignite are equipped to transition into seed-ready startups."

"Elev X! Boost is a highly customized program designed to empower seed-stage startups for rapid growth and a successful Series A round," Matsumoto added. "This program provides capital, strategic partnerships, and integration within NEC X’s global tech ecosystem to accelerate growth."

Unique Features and Benefits

NEC X’s corporate backing and startup-first approach set its programs apart. "Entrepreneurs in AgTech and other industries don’t just rely on us for funding, but also gain hands-on collaboration, resources, expertise, and the chance to validate solutions with real customers and technologies of NEC to build meaningful solutions," noted Matsumoto.

Impact on AgTech Startups

NEC X has a strong track record in supporting AgTech startups. Verdi Expeditions Inc., for instance, has developed a scalable platform for farm automation and personalized plant healthcare. Through Elev X! Boost, NEC X has provided strategic investment and technological collaboration, enhancing Verdi’s technology and expanding its geographic reach. Similarly, Beagle Technology, which automates pruning and shoot thinning of wine grapevines, has benefited from NEC’s expertise in robotics and computer vision.

"NEC researchers have supported Beagle Technology's solution, leveraging their expertise in robotics and computer vision technologies," Matsumoto stated. "This collaboration capitalized on NEC's longstanding leadership in these areas."

Program Structure and Support

Startups in Elev X! Ignite work closely with NEC X’s innovation team, engineers, researchers, industry experts, coaches, mentors, and advisors. This collaborative environment helps them refine their products through activities like customer discovery, MVP development, and proof-of-concept validation. The program aims to develop scalable solutions and strong business models, positioning startups for revenue generation and further funding.

"During Elev X! Ignite, startups will work closely with NEC X’s innovation team and engineers, NEC researchers, industry experts, coaches, mentors and advisors to refine their product," said Matsumoto. "This leads to a refined business model, a strong team, and scalable solutions."

Elev X! Boost offers startups the chance to integrate their innovations with NEC’s technology, accelerating product development and scaling efforts. Startups can generate revenue through integrations with NEC’s global footprint and benefit from up to $200K in equity funding, engineering expertise, and R&D resources. Access to leading tools for tech development, sales and marketing, and financial management further supports their growth.

Innovation and Market Adoption

NEC X leverages NEC Corporation’s 125 years of tech expertise, extensive patent portfolio, and global market reach to support startups in their innovation processes. The Elev X! programs help startups develop viable business models, assess market potential, and identify synergies with NEC technologies. For mature startups, Elev X! Boost offers customized acceleration experiences, preparing them for scaling and future fundraising.

"Many early-stage innovators that join Elev X! Ignite come to us with just a clear vision and a capable team," Matsumoto commented. "In this case, we can work with them intensively over several months to assess the potential market, identify the Customer-Problem fit and Problem-Solution Fit, develop a viable MVP, conduct POC, and pinpoint synergies with existing NEC technologies."

Future of AgTech Innovation

Matsumoto highlighted the challenges facing the AgTech industry, such as water shortages, shorter growing seasons, and extreme weather conditions. NEC X aims to address these issues by expanding its focus to include decarbonization and responses to global warming. "We aim to contribute to solving these challenges by expanding our target areas to include decarbonization and responses to global warming," Matsumoto stated.

Feedback and Evolution

NEC X continuously improves its programs through comprehensive feedback mechanisms. Regular surveys and in-depth interviews with participants and partners provide valuable insights, which are used to refine and enhance the program offerings. Retrospectives after each program batch ensure that the feedback is systematically analyzed, leading to iterative upgrades that keep the programs relevant and impactful.

"To ensure continuous improvement, we conduct regular surveys and in-depth interviews to gather both quantitative and qualitative feedback," said Matsumoto. "By systematically analyzing this feedback, we make iterative upgrades with each new batch."

Collaboration and Partnerships

NEC X’s growing partner network includes leading accelerators, investors, R&D labs, and industry giants. Notable collaborations include partnerships with SVG Ventures | THRIVE, Alchemist Accelerator, Enterprise Round Table Accelerator (ERA), and Sand Hill Angels (SHA). These partnerships provide startups with additional resources, expertise, and opportunities for growth.

"Our partner network includes leading accelerators, investors, R&D labs, industry giants and academic powerhouses, each offering invaluable expertise, resources and opportunities to help startups scale to new heights," Matsumoto explained.

Advice for Aspiring AgTech Entrepreneurs

Matsumoto advises aspiring AgTech entrepreneurs to seize the right opportunities by joining programs like Elev X! Boost and Ignite. NEC X supports entrepreneurs by providing customer introductions, partner connections, and assistance with proof-of-concepts, aiming for aggressive growth and innovation in the agricultural sector.

"I always tell our AgTech Startups, 'Let’s aim for aggressive growth together,'" Matsumoto advised.

Future Plans and Expansion

Looking ahead, NEC X plans to integrate more cutting-edge technology into its programs, including NEC’s generative AI technologies like NEC cotomi. The goal is to ensure these technologies can be implemented efficiently to accelerate business growth and drive real-world impact.

"We are considering integrating more cutting-edge technology into our programs," Matsumoto shared. "Driving real-world impact is our top priority."

NEC X’s Elev X! programs are at the forefront of AgTech innovation, offering unparalleled support and resources to startups. By fostering collaboration, leveraging advanced technologies, and continuously improving their programs, NEC X is empowering the next generation of AgTech innovators.

ALLIANCE
Saudi Arabia Launches First AgriFood Tech Alliance

Image provided by the Ministry of Environment, Water & Agriculture

The Ministry of Environment, Water, and Agriculture has announced the launch of the first Saudi AgriFood Tech Alliance. This initiative, featuring founding partners such as the Research, Development, and Innovation Authority, King Abdullah University of Science and Technology (KAUST), and Topian, the NEOM Food Company, aims to provide a collaborative platform for stakeholders in the food and agriculture sectors.

A Collaborative Network for AgriFood Innovation

The Saudi AgriFood Tech Alliance seeks to unite and mobilize a diverse network of around 40 entities, including participants from the public and private sectors, research and academia, and nonprofit organizations. This coalition aims to catalyze the deployment of AgriFood technological solutions on a national scale.

Government’s Commitment to Research and Innovation

H.E. Eng. Mansour Al-Mushaiti, Vice Minister of Environment, Water and Agriculture, highlighted that the launch of the Saudi AgriFood Tech Alliance reflects the government’s dedication to research and innovation. The initiative aligns with national goals and emphasizes the importance of building national competencies, promoting investment, and fostering partnerships with private sector entities, research institutions, and civil society.

GRANT
Tidal Grow® AgriScience Awarded USDA Grant to Boost Fertilizer Production

Image provided by Tidal Grow® Agriscience

Tidal Grow® AgriScience, a division of Tidal Vision Products Inc., has been awarded a USDA Fertilizer Production Expansion Program (FPEP) grant. This funding will significantly boost the production of the company’s popular seafood hydrolysate liquid fertilizers, Oceanic® and SeaPhos®. With this grant, Tidal Grow AgriScience will establish a new facility in Texas and expand its production capacity in Washington, tripling the output of these innovative bioactive carbon-based fertilizers.

Leadership Commentary

“Amidst continued global conflict and disrupted supply chains, American growers need novel regenerative solutions that improve soil and plant health to achieve higher yields,” said Norm Davy, CCO at Tidal Grow AgriScience. “Made by up-cycling waste from the seafood industry, our plant nutrition and crop protection products offer agronomists and growers creative solutions to solve some of agriculture’s greatest challenges.”

CROP SCIENCE
Intrinsyx Bio & Syngenta Partner to Enhance Agricultural Solutions

Syngenta Biologicals and Intrinsyx Bio announced a groundbreaking collaboration. This partnership aims to bring a novel biological solution to agricultural markets worldwide, promising substantial benefits for farmers and the environment.

Leadership Commentary

“This agreement represents another opportunity to expand the reach of our ‘biology that works.’ Partnering with Syngenta allows farmers worldwide to benefit from endophytes’ proven mode of action and extensive field testing that improves nutrient use efficiency and increases crop yields,” said Greg Thompson, CEO of Intrinsyx Bio.

Boosting Farmers’ Access to Advanced Endophyte Formulations

Intrinsyx Bio's collaboration aims to improve farmers' access to their proprietary endophyte formulations. These formulations, available as seed treatments and foliar applications for key crops, help reduce the need for synthetic fertilizers by fixing atmospheric nitrogen directly into the plant, which increases the availability and uptake of essential nutrients and lowers the environmental impact of farming practices.

OTHER NEWS
AgriTech Weekly: Key Industry Collaborations and Innovations

Bunches of Bananas

🍌 MustGrow Biologics Corp. announced its membership in the Global Alliance Against TR4, an international consortium of world-leading banana industry players dedicated to defeating Fusarium wilt TR4. MustGrow’s collaboration aims to leverage its innovative technologies to address this critical issue alongside industry giants such as Bayer, Chiquita, Del Monte, Dole, and Fyffes.

✈️ Pyka announced a groundbreaking commercial agreement with SLC Agrícola, one of Brazil’s leading agricultural producers. This strategic partnership will deliver Pyka’s innovative, fully autonomous, and 100% electric crop protection aircraft, the Pelican Spray, to SLC Agrícola.

🌱 Moa Technology signed a research and commercial partnership with Nufarm. This collaboration provides Nufarm exclusive access to a new mode of action herbicide discovered through Moa’s breakthrough innovation platform. The new herbicide, currently in field trials in the US, UK, France, and Spain, represents a significant advancement in weed management, addressing the growing demand from farmers for safe and effective solutions.

🚜 According to the latest Sandhills Global market reports, the values for used farm equipment in Sandhills marketplaces continue downward. Notably, auction values are declining faster than asking values, creating a significant gap between the two. This trend is especially pronounced in used combines, planting equipment, and tractors with over 100 horsepower.

🥦 Pluri Inc. announced a strategic proof of concept (POC) agreement with a leading international agriculture corporation. The agreement aims to enhance the global vegetable product supply, streamline supply chains, and address climate change while promoting a more sustainable agricultural future.

🥇 Forward Fooding has opened early applications for the sixth edition of the FoodTech 500. This initiative aims to identify the most promising and impactful AgriFoodTech innovators for 2024, with applications accepted until July 31.

🧑‍🌾 Growers Edge has announced the expansion of its innovative farmland valuation tool, RangeAg. Initially available in Iowa, Illinois, Indiana, Minnesota, and Wisconsin, RangeAg’s reach now extends to North Dakota, South Dakota, Kansas, and Missouri.

🌻 Cargill is partnering with the Forever Green Initiative at the University of Minnesota to advance the research and development of winter camelina and domesticated pennycress. This collaboration focuses on creating high-performing seed varieties and farming techniques tailored to the unique growing conditions of the Upper Midwest.

💰 FMC Corporation signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC (Envu) for $350 million, subject to a closing working capital adjustment. Envu aims to enhance environmental health through innovative solutions.

💵 Clean Crop Technologies announced that it has secured $1.2 million in grant funding through the Massachusetts Manufacturing Innovation Initiative (M2I2), administered by the Center for Advanced Manufacturing (CAM) at the Massachusetts Technology Collaborative (MassTech). The funding will propel the company’s growth and operational capacity.

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