VC firm Cultivian Sandbox raises US$135m to support agri-food tech companies

24 Apr 2019 --- Venture capital firm Cultivian Sandbox Ventures has raised US$135 million in its third round of funding: Cultivian Sandbox Food & Agriculture Fund III. The VC firm invests in food and agriculture technology companies that address global megatrends, including increasing demand for protein, food safety, traceability, nutrition and resource efficiency. Notable investors in this round of funding include Archer Daniels Midland (ADM), Corteva Agriscience, Ecolab and Griffith Foods among others.

The food and agriculture industry is undergoing unprecedented change, driven by shifting demographics, consumer preferences, sustainability pressures and significant concerns about food safety and security. Emerging technologies have the potential to dramatically reshape the US$5 trillion food and agriculture sector to meet the changing demands of both consumers and producers. Cultivian Sandbox invests in early-stage companies and seeks to impact this landscape positively, says the VC firm.

“Twenty years ago, the public wanted food that was healthy, inexpensive and tasty,” says Nick Rosa, Managing Director at Cultivian Sandbox. “Now, in addition to those requirements, there is a greater interest in how our food is made and where it comes from.”

Consumers want foods that are sustainably produced and traceable, with benefits beyond essential nutrition, he explains. “We’re investing in start-ups that can help meet these new standards for productivity, environmental sustainability and social responsibility.”

Cultivian Sandbox works with its strategic investors to source valuable market and technology insights and facilitates collaboration with agri-food tech start-ups.

“Cultivian continues to provide forward-leaning visibility into promising technologies to better meet the needs of farmers and consumers,” Neal Gutterson, SVP and Chief Technology Officer of Corteva Agriscience, Agriculture Division of DowDuPont, notes.

Fund III has already invested in three companies. Full Harvest has built a B2B marketplace for imperfect and surplus produce, aiming to reduce food waste while creating an additional revenue stream for farmers. Geltor designs animal-free collagens and other bioactive proteins for personal care, nutrition, and food applications. And the newest addition to the portfolio, Phylagen, leverages the environmental microbiome to verify the origin of goods in global supply chains.

Founded in 2008, Cultivian Sandbox’s managing team includes executives, investors, and scientists with experience at Credit Suisse First Boston, Dow AgroSciences, Growmark, Monsanto and NutraSweet. To date, Cultivian Sandbox has raised close to US$300 million across three funds and invested in 25 companies. 

Fund III is also focusing on sustainable production on the farm. 

“Until recently, the task of protecting crops from weeds, diseases and insects fell exclusively to synthetic chemistry. It did a marvelous job of keeping food supply ahead of population growth,” says Dr. Ron Meeusen, Managing Director of Cultivian Sandbox. 

“Now that consumers want alternatives to synthetic chemicals, the industry is adapting. Fund III will finance biological and physical alternatives that address consumer demands,” he concludes.