9/3/2023 0 Comments Lightsmith top competitors“We’re talking about early-stage companies that are often capital intensive, have a long path towards commercialization, and often find it challenging to raise capital in the current financing market,” he says. Few have material, commercial traction, says Bergman, and even fewer have positive EBITA. It’s tough to have a discussion these days about investing without discussing the current economic climate.Ĭlimate-focused technologies may be faring better than other agrifoodtech sectors, but most of the companies in the space are still at the early stages of development and refining their technology. “Since we’ve been doing this for so long, we have a lot of case studies and can show people there is no concession and that the two goals enhance each other.” Today’s challenges ![]() “We drive top-tier financial returns at the same time that we drive environmental, social and economic progress in the sectors in which we invest,” she says of DBL Partners. ![]() Pfund, whose firm has been making impact investments for more than two decades, firmly believes investments don’t have to choose between financial returns and environmental benefits. In terms of creative capital, I’m referring to some of the less-dilutive and non-dilutive sources which could include mezzanine debt, a government loan program, or a partnership with a corporate strategic.” “The economics of raising equity to build facilities, to use for working capital or to pay for equipment isn’t really there. Equity fundraising isn’t always the answer here. In the early stages, says Bergman, agtech companies are typically capital intensive and take a long time to prove the technology and get to market. That’s includes everything from implementing geospatial tech in the field to transitioning to regenerative farming practices that sequester carbon and ultimately help other industries decarbonize.īut many of these technologies are far more difficult to fund than, say, apps and software services found at the consumer level. To decarbonize the sector and create a more sustainable food system, farmers, producers, corporates and startups along the value chain need to be embracing new advances in ag innovation. Image credit: Citi Behind the push for more creative capitalĪgriculture is responsible for nearly one-third (27%) of global greenhouse gas emissions, according to recent numbers from McKinsey. “We basically focus on driving top tier financial returns at the same time that we drive environmental, social and economic progress in the sectors in which we invest.”īergman tells AFN that creative capital includes “all other financing options outside of equity that companies are utilizing, which is especially important today when it might be a challenge to raise equity financing.” Citi’s Adam Bergman. “The commonality of all of these words is to bring more impact to bear on your investment rather than just a financial return,” she tells AFN. Pfund says DBL Partners, whose portfolio includes Tesla and foodtech unicorn Apeel, calls it “double bottom line capital.” ![]() While it goes by many names (“impact capital,” “confluence capital”), creative capital usually refers to patient, long-term capital that doesn’t require a quick return. Martha Schlicher, PhD, entrepreneur in residence at BioGenerator and The Lightsmith Group co-founder and managing director Sanjay Wagle will also join the panel. This will be followed by a panel discussion featuring Adam Bergman, managing director, Clean Energy Transition Group & Global Head of AgTech Investment at Citi. Nancy Pfund, founder and managing partner at DBL Partners, will kick off the discussion with a keynote address on the topic. Louis, Missouri, will discuss exactly what this type of investment is (and isn’t) and how the agtech community can generate more of it. Panelists at this year’s AgTech NEXT conference, October 11 – 13 at the Donald Danforth Plant Science Center in St. “Creative capital” is one way to achieve this. From digital to biological tools, agtech entrepreneurs are collectively working to help farmers and food manufacturers create more efficient and healthier food products.īut it will require billions from investors in order to turn this potential into scalable products and services that can help feed a growing population while simultaneously reducing environmental degradation. Agtech has a very important role to play in building a more efficient, equitable and sustainable global food system.
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