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Companies invest in ag tech startups

Companies invest in ag tech startups

Growmark, CHS launch capital fund for ag innovations

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Unmanned-aerial vehicle

The global market for unmanned-aerial vehicle and robot technologies is expected to reach $30 billion by 2026. The market is expected to grow at an annual rate of 22-percent from 2021 to 2026. 

Cooperative Ventures, a new capital fund from CHS and Growmark, will focus on creating advancements in breakthrough technologies for the agriculture industry.

Both companies are equal partners in the $50 million fund, which will be established as its own separate legal entity, the companies announced Nov. 17.

The combined markets of the two companies cover millions of acres and thousands of farmers that will create an industry-leading test field for products and services within North America. The fund has identified three core investment areas, or “Fields of Play,” to maximize the impact of each investment: crop production, supply chain, and sustainability.

“This is a terrific opportunity to act cooperatively by working together on a venture meaningful to agriculture and our corresponding supply chains,” Growmark CEO Jim Spradlin said in a news release.

“This partnership will help accelerate technology solutions to existing and emerging challenges in agriculture and is yet another way CHS creates connections to empower agriculture,” said Jay Debertin, president and CEO of CHS Inc.

Growmark and CHS will provide tech startups access to distribution capabilities within multiple value chains, allowing for opportunities to test and refine at different scales. Having cooperative member-owners and customers within the same ecosystem will take these innovative ideas to a new level to create shareholder value and customer-focused solutions.

Special attention will be paid to the startup’s strategic fit with both companies. Other factors will be based on their drive to lead in the startup space, the ability to deliver value and quality, the experience of management, and ultimately the ability to take a product or service to market. Cooperative Ventures will be comprised of teams based out of Bloomington, Illinois, and St. Paul, Minnesota.

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