May 5, 2016

By GAI News Staff

A new accelerator focusing on growing agtech startups that are positioned to sustainably improve agricultural productivity along the farm-to-market value chain has been launched out of Triangle Park, North Carolina.

AgTech Accelerator™ was launched with an initial close of $11.5 million, which was led by Alexandria Venture Investments, the venture arm of real estate investment trust, and Alexandria Real Estate Equities Inc. Othe investors include some of the leading and most prominent agricultural firms and venture investors in the space such as Bayer, Syngenta Ventures, ARCH Venture Partners, Flagship Ventures, Hatteras Venture Partners, Mountain Group Capital, Harris & Harris Group Inc., and Papas Capital.

“The time is really right for early-stage ag investing to come to life,” said John Dombrosky, chief executive of AgTech Accelerator told the New York Times. “It’s happening before our very eyes.”

In 2015, agtech investment doubled year on year with 499 agtech companies raising $4.6 billion, with $2.4 billion of that total being raised by U.S.-based startups. Investments raised in 2014 totaled $2.36 billion, and in 2012 totaled only $500 million, according to AgFunder.

However, as technologies mature and become increasingly complex and R&D timelines shorten in the face of increasing competition, it is becoming more critical that startups engage in collaborative models of growth and development with established mentors.

“By eliminating traditional startup barriers, including raising capital and forming a leadership team, AgTech Accelerator will enable startups to focus on advancing promising science, make well-informed decisions and accelerate product development,”  said Derek Norman, Ph.D., head of corporate venture capital for Syngenta in a recent press release.

Companies identified to be backed by AgTech Accelerator™ will be sourced through, and given access to  “a proven operating model, remarkable industry advisors, institutional partners and well-resourced facilities, as well as committed and sophisticated capital” according to the fund, in addition to having access to top U.S. research partners including Duke University; North Carolina State University; Penn State University; Purdue University; University of California, Davis; University of North Carolina at Chapel Hill; and Washington State University.

The field of ag technology, which once focused mainly on seed modification, has exploded in recent years, giving investors a wide range of agtech-focused funds in which to invest. Just since April 20, the announcement of the AgTech Accelerator™ has been joined by the announcement of an agtech and lifestyle fund launched by AB InBev in partnership with Techstars, and the launch of the Bayer Trendlines Ag Innovation Fund established through a partnership between Bayer and Trendlines with an initial $10 million investment by Bayer.