January 16, 2020

By Lynda Kiernan

Silicon Valley-based Agroecology Capital has announced its first European investment in AgroSustain, a developer of a pipeline of plant-derived solutions targeting a broad range of agronomically important pathogens. 

“We are happy to back AgroSustain, a company that develops game-changing solutions to reduce food waste, and that will impact the whole supply chain from growers to consumers. Backing a European team led by a female founder is also embedded in Agroecology Capital’s strategy,” said Nicolas Denjoy, managing partner, Agroecology Capital.

Founded in 2018 by award-winning plant scientist Dr. Olga Dubey, AgroSustain’s first product, AgroShelf+, is formulated to extend the shelflife of fruits and vegetables infected with varying groups of molds in the mid-to-downstream post-harvest phases of the supply chain – some of which can have negative effects on humans. 

Developed in association with Agroscope, the Swiss center for agricultural research in Nyon, AgroSustain has identified more than 60 antifungal compounds that have contributed to the formulation of AgroShelf+, giving the product the ability to have an anti-fungal effect on more than 1,600 key crops in food storage facilities, extending shelf life by up to several weeks. 

“The growing population and environmental issues require sustainable technologies available along the value chain from farm to fork,” said Dr. Olga Dubey in December 2018. “Our solutions help food distributors and retailers to significantly extend the shelf life of fruits and vegetables by preventing the development of molds. Plant-inspired products, reduction of food waste and mitigation of CO2 emissions are three key benefits to drive a sustainable industry and promote healthy food.”

Food loss throughout the supply chain in the EU is costing 60 billion euro per year, according to Paul Bosch, food and agri analyst at Rabobank Food and Agribusiness Research. Of this, fresh fruits and vegetables worth tens of billions of dollars are lost to post-harvest molds. 

While it’s true that food waste presents an enormous and complex social and economic scenario, there has been a relatively recent shift in the collective view of the problem. Investors, particularly agtech and social impact investors, have realized the potential that lies in the  $2 billion market opportunity for developing solutions to the food waste challenge.

Armed with a business case for action, agtech investors, innovators, and entrepreneurs are taking the lead, collaborating to fund and develop groundbreaking solutions to the agricultural and food waste challenge.

Other startups tackling the challenging issues connected with food waste in Europe and the UK that have recently raised funding rounds include: Winnow Solutions, a British developer of the Winnow Waste Monitor – a large electronic scale that weighs the produce being wasted in commercial and hospitality kitchens, and reports back though a tablet on what is being wasted, why, and what it is costing the operation – information that most commercial operations do not track. 

And Karma, a Sweden-based virtual marketplace founded by Hjalmar Ståhlberg Nordegren, Ludvig Berling, Mattis Larsson, and Elsa Bernadotte that allows restaurants and food retailers to sell unsold food at a discount direct to consumers, who come pick up the food on-site.

Already named to the Forbes 30 Under 30 Science & Health Care List for 2018, AgroSustain will use the capital from this round to support its ambition to achieve global scale.

“We are pleased to have such a reputable and knowledgeable investor as Agroecology Capital,” said  Dr. Dubey. “We are looking forward to their support to accelerate AgroSustain’s growth outside Switzerland.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.