June 22, 2020

By Lynda Kiernan, Global AgInvesting Media

London-based ADM Capital Europe announced that Cibus Fund has participated in a US$7.8 million Series B for Dutch predictive analytics and livestock monitoring software company Connecterra.

Joining Cibus Fund in this round are French international food safety company Kersia, Dutch impact investor Pymwymic, and existing investors Breed Reply and Sistema_VC.

Led by ADM Capital co-founder, Robert Appleby, and Jason Silm, former head of agribusiness investment at VTB capital and director at Macquarie Agricultural Funds Management, The Cibus Fund aims to capitalize upon the significant investment opportunities generated by the ongoing evolution occurring in global demographics and trade patterns, and the inability to meet growing regional demand for high-value foods by some of the world’s fastest growing economies. To do so, the fund targets companies with strong management teams that are active in high-value food chains with a demonstrable technological advantage, and environmental sustainability.

In January 2019, the fund announced a cumulative raising for the fund topping out at $452 million, and the team believes that Connecterra presents a value-added technology platform with the potential to increase returns for farmers, improve animal welfare, and bring livestock and dairy farming into the future.

This Series B represents the largest funding round to-date in the Dutch dairy tech sector, and it’s a space prime for disruption and growth. More than six billion people worldwide source 14 percent of their protein intake from the 330 million global dairy cows on 117 million farms, according to ADM Capital, which goes on to state that although the industry is valued at US$328 billion, it remains highly fragmented, with fewer than 1 percent of dairy farmers integrating technology to help manage their livestock herd – technology that could address chronic issues being faced by dairy producers, including poor fertility rates, poor animal health management, and sub-par breeding.

Using sensors, cloud computing, AI, integrated data sources, and machine learning, Connecterra has developed the IDA (Intelligent Dairy Assistant) platform. Through IDA, Connecterra can provide farmers the means to identify issues happening on-farm up to two days before human detection, and recommend solutions that support a transition to sustainable farming practices.

This ability can significantly reduce the costs associated with animal care, and result in a 50 percent reduction in antibiotic use, a 20 percent reduction in labor costs, and a 30 percent improvement in farm efficiency.

Factors such as these have presented The Cibus Fund with a value-added technology platform with the potential to increase returns for farmers, improve animal welfare, and bring livestock and dairy farming into the future.

“We are most excited to invest into Connecterra, the Company is at the forefront of innovation within the dairy industry, powering innovation through its sensors and cutting edge artificial intelligence. Connecterra’s IDA software empowers farmers via predictive intelligence to drive productivity and increase sustainability,” said Alastair Cooper, head of Early Stage Investments, ADM Capital Europe.

“IDA connects farmers to the value chain whilst increasing animal welfare and improving farm efficiency,” continued Cooper. “Its system, harnessing innovative technologies, is a natural fit for Cibus Enterprise Fund which focuses on investment opportunities in the Agri-Food Tech sector. We are excited to help Connecterra continue to evolve and expand into new markets.”

In October 2018 The Cibus Fund was the first fund to be awarded the “Guernsey Green Fund” status by the Guernsey Financial Services Commission – an award that is only granted to funds which meet strict benchmarks designed to reassure investors that capital is being invested in-line with environmental standards. This designation has been awarded to Cibus in recognition of its regard for environmental sustainability as a key factor in value creation.

“Connecterra is a great example of how sustainability and commercial viability in food production have become inseparable handmaidens,” said Robert Appleby, CIO, ADM Capital. “If you have happier cows, use fewer inputs and can allow farmers to make informed decisions, you can be assured of a superior outcome. We believe Connecterra is emblematic of the adoption of technology to produce better food, in a better way.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.