New capital fund launched by cooperatives
It’s time for your report on the Farm of the Future. I am Tim Hammerich.
Over the past decades, billions of dollars of venture capital have been invested in agricultural technology. Today, a few farmer-owned cooperatives are joining forces to also invest part of their capital in startups. GROWMARK and CHS have formed Cooperative Ventures, a new equity fund that will focus on creating breakthroughs in cutting-edge technologies for the agricultural industry, said Brad Drake, GROWMARK’s chief innovation officer.
Drake… “Between CHS and GROWMARK, we want to be able to maximize the investment of our cooperative farmer capital. We are both co-operatives and ultimately owned by grassroots farmers. So we are looking at these types of opportunities in the specific strike areas that arise. And we’ve decided to take these things together and really concentrate the capital in unique technological spaces that we can help advance for the betterment of agriculture as a whole. “
Drake said a management team will be assembled to deploy capital to areas that will benefit farm owners.
Drake… “Our first push is a $ 50 million collective fund spread over all investments and probably over seven to eight years with kind of a downward trajectory after that in the areas of crop production, supply chain. with a focus on last mile delivery and the last category, which I’ll basically call sustainability. “
This will give farmers a chance to take advantage of some of these venture capital investments.