November 9, 2021

Photo credit: IGS

By Lynda Kiernan-Stone, Global AgInvesting Media

Scottish agribusiness Intelligent Growth Solutions (IGS) announced the close of its Series B funding round, oversubscribed at £42.2 million (US$57.2 million).

Although the round was supported by a gathering of new investors, for lead investor COFRA AG of Zug, Switzerland, this commitment marked its first investment in sustainable food systems and agtech. As a six-generation, family-owned business, this investment aligns with COFRA’s broader dedication to providing a positive contribution to both society and the environment through its business and investments. 

Additional new investors joining COFRA were Chicago-based Cleveland Avenue LLC, and DC Thomson of Dundee, Scotland, along with returning existing investors Ospraie Ag Science, S2G Ventures, AgFunder, and Scottish Enterprise, and private shareholders and IGS staff.

Under the terms of the funding round, Donald Brenninkmeijer and Jason Mraz from Ospraie Ag Science have both been appointed to the IGS board of directors. 

“With a growing population putting ever greater strain on resources and the environment, there is an urgent need for sustainable, high-yield forms of food production,” said Donald Brenninkmeijer, IGS director appointed by COFRA. “We’re excited to support IGS on its journey to resolve the dual challenge of food insecurity and environmental degradation through its vertical farming technology.”

Founded in 2013, IGS brings together decades of farming and engineering experience to design and build award-winning vertical farms using its patented plug-and-play technology that revolutionize the indoor growing industry for the food, pharmaceutical, and fragrance sectors.

With the goal of increasing commercialization for indoor horticulture, IGS brings together internet-enabled smart lighting technology with automation and power management to mimic weather conditions via a pre-programmed “weather recipe”.  To do this, the startup developed a breakthrough IoT-enabled power and communications platform involving patented electrical, electronic, and mechanical technologies connected to the most sophisticated ventilation system in the world. Managing the system, which also monitors crop health, is a SaaS data platform that uses AI to deliver economic and operational benefits for global  indoor farming operations.

After launching its first crop research center in 2018,  the company has since delivered solutions to customers across four continents, and has built up a sales pipeline that has quadrupled in the past 12 months.

David Farquhar, CEO of IGS, commented, “The conclusion of a hugely over-subscribed Series B round represents another exciting step for IGS and our investors. We have been supported with this investment by well-established, globally recognised and highly ethical investors in COFRA, Cleveland Avenue and DC Thomson, who understand the transformational potential of our technology for controlled environment agriculture.”

This Series B dwarfs the company’s Series A which had a second close at £7 million (US$7.6 million) in October 2019 when IGS added an additional $1.75 million in capital to the round. 

At the time, Dwight Anderson, CIO of Ospraie AG Science, said, “IGS has tremendous potential to transform the way food is produced and supplied, and our investment – Ospraie’s first in the indoor agriculture market and in Scotland – is a testament to our strong belief in the success of IGS’ technology.”

IGS’ platform offers advanced power management that has the potential to lower energy requirements for indoor ag projects by up to 50 percent. It does this by giving producers an alternative to high-cost LED lighting, and gives growers the ability to control not only lighting but other environmental elements including watering, CO2 levels, and nutrient delivery to produce food in accordance with what the company calls the ‘3Es’ of of modern agriculture: excellent quality, at prices that are economically competitive, in a way that is environmentally sustainable.

“IGS’s technology is unique,” said Brenninkmeijer, “its growth plan solid and we are confident in its potential to rethink the future of agricultural food systems. This first investment in sustainable food systems is consistent with COFRA’s long-standing commitment to using business and capital as a force for good and I look forward to working with the IGS Board and management team to further support their growth.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.