The Venture Codex

Participated · Series C · Aug 2022

Vestaron is a Kalamazoo, Michigan–based global leader developing novel peptide-based crop protection solutions. Its core products are peptide-based bioinsecticides in the SPEAR® portfolio, including BASIN, a second active ingredient recently approved in the U.S. and Mexico. The company has commercial traction, having surpassed 1 million acres of product sprayed and entering Europe via emergency use authorizations to control Tuta absoluta (tomato leafminer). Vestaron recently closed a funding round of more than $20M to expand commercial presence in key U.S. and European markets and to advance development of additional peptide-based products. It signed ADM as a contract manufacturing organization to increase production capacity and reduce costs, supporting near-term commercialization and scale-up. Vestaron plans to secure full regulatory approvals and begin sales of BASIN by year-end, further strengthening its SPEAR® bioinsecticide product portfolio and pursuing additional global market opportunities. Vestaron develops peptide-based biological insecticides under its SPEAR® brand, offering a novel mode of action comparable in efficacy to synthetic options. Its products are designed to be soft on honeybees and other pollinators as well as safe for fish and mammals. The SPEAR family provides an opportunity to incorporate the new IRAC Group 32 into resistance-management rotations. Led by CEO Anna Rath and headquartered in Research Triangle Park, North Carolina, the company is focused on expanding its product pipeline of additional peptide-empowered solutions. Vestaron plans to expand from specialty fruit, vegetable and nut crops into broad acre row crops and into new insect pest categories. The company recently raised additional capital to support these development and expansion plans, bringing its total funding to date to $92M. Vestaron is a Durham, NC-based company that develops peptide-based biological crop protection solutions. Led by CEO Anna Rath, the company has developed biological insecticide technology that enables a wide variety of biologic crop protection products. The firm markets product lines based on that technology. It closed an $82M Series C in January 2022. Vestaron said it will use the funds to expand operations and its business reach. As a result of the financing the board will add Ariel Barack (Ordway), Mike Wilbur (Cavallo) and Craig Herron (iSelect) as board observers. Vestaron develops peptide-based biopesticides using a proprietary platform to optimize and produce peptides that aim to match the efficacy of traditional synthetics while improving safety and environmental profile. Led by CEO Anna Rath, the company has launched its first two products: Spear-T for greenhouse pests (thrips, whiteflies, aphids and mites) and Spear-Lep for field lepidopteran pests. Vestaron raised $40M in a Series B financing to support commercialization of the Spear family, expand into new geographies and accelerate development of additional peptide-based biopesticides. The company plans to use the funds to advance its pipeline and broaden market presence. No operating metrics were disclosed in the article. Vestaron exploits natural insecticidal peptides that have potent insect-killing potential while being safe to humans, birds, fish and the environment. The company is leveraging its peptide technology to develop bioinsecticides, plant-incorporated traits and synthetic molecules derived from those peptides with a favorable safety spectrum. Led by CEO John Sorenson, Ph.D., Vestaron plans to expand research and development using proceeds from its latest financing. The firm aims to introduce its first product, the SPEAR™-T biological insecticide, before the 1st quarter selling season next year and two additional products using the same active ingredient later in 2017. It completed an $18m Series D financing to fund these activities.

Participated · Series C · Dec 2021

Agrofy began as an online marketplace and now positions itself as a leading agribusiness online market in Latin America, operating in nine countries including Argentina. The platform lists around 150,000 products for farmers to purchase and has expanded into financial services. Its fintech offerings include the Agrofy Pay e-wallet and Agrofy Credits to qualify producers and grant loans through the platform. The company will use the new funding to strengthen three core business areas: its e-commerce marketplace, its farmer fintech suite, and expansion in Brazil. Agrofy plans to launch Agrofy Pay in Brazil in H2 2022 as part of that expansion. Company leaders said the Covid-19 pandemic accelerated agriculture’s digitization, which has supported their product and geographic growth. Agrofy operates an online agribusiness marketplace that matches buyers and sellers of agricultural products, machinery, farmland and financial services. Unlike some U.S. marketplaces, Agrofy works with existing vendors and agricultural retailers to digitize the supply chain rather than cut out middlemen. The platform lists over 200,000 products from 10,000 merchants across 17 categories, represents 95% of agricultural products in Argentina, has 500,000 farmer members and attracts 5 million monthly visitors. Today its revenues are based on membership fees charged to vendors, and the company plans to introduce transaction-based fees that founders estimate could be worth $50 million in the first year. Agrofy has a footprint in nine Latin American countries and by December nearly 50% of revenue came from Brazil. The company plans to expand to Mexico in 2020, grow its team from 200 to 300, increase its offices from 10, and use funding to simplify logistics and payments and improve user experience. Agrofy operates an online agribusiness marketplace listing farm machinery, vehicles, farmland, tools, equipment, insurance and other financial services, alongside e-commerce marketing, consulting and a news site (Agrofy News). The platform also provides transaction hosting, logistics and financial services for farmers and agribusinesses. Since launching in 2015, Agrofy has signed up 5,000 companies and hosts more than 65,000 product listings, with peer-to-peer and second-hand farm vehicle marketplaces particularly popular. The company plans to broaden product supply and build out site capabilities, including launching specific online payment solutions and six new agribusiness categories in 2018 (bringing total categories to 15). Financially, Agrofy raised an oversubscribed $6 million Series A in the reported round, bringing total capital raised to $10 million. The founding team has prior agtech experience (FYO.com) and has built partnerships with large corporates, which helped attract strategic corporate VCs.

Led · Series A · May 2021

Jai Kisan provides a variety of financial services products aimed at improving economic opportunities for smallholder farmers and rural SMEs in India. The company is being supported to scale under investor-backed growth initiatives. British International Investment describes its participation as part of a 'VC Scale-up' strategy to support the growth of impactful portfolio companies. BII committed $3.02m in equity to Jai Kisan in January 2023; the investment was executed in INR. BII co-invested alongside a fund manager and relied on the fund manager's environmental and social due diligence. An environmental and social action plan was developed covering application of BII's exclusion list, labour and working conditions, client protection and credit scoring processes, and grievance management. Jai Kisan is described in the article as an Indian rural fintech startup. It announced a $50 million (Rs 390 crore) raise in a combination of equity and debt in the first close of its ongoing Series B. The financing was presented as a mix of equity and debt instruments. Named investors in the first close include Mirae and Blume, alongside other participants. The Series B remains open for additional closes. Jai Kisan provides digital financial services starting with credit for online and offline, income-generating rural commerce transactions. It partners with equipment dealers, agriculture retailers, collection centers and market linkage platforms to provide credit directly to farmers across the agriculture, poultry and dairy value chains. In April the startup launched Bharat Khata, a digital ledger product for rural businesses. The company raised $30 million in a Series A led by Mirae Asset in May. Recently Jai Kisan secured Rs 25 crore in debt from Trifecta Capital and allotted preference shares worth Rs 2.5 crore to the same venture debt firm. Founded by Arjun Ahluwalia and Adriel Maniego, the startup is focused on scaling credit and financial products in rural markets. Jai Kisan is a Mumbai-headquartered fintech startup focused on bringing financial services to rural India, where commercial bank penetration is low and many customers lack credit scores. It treats farmers and similar professionals as businesses rather than consumers and developed Bharat Khata, a system that helps individuals and businesses access cheaper financing while ensuring funds are used for agri-inputs, equipment, and other income-generating purposes. Bharat Khata, launched in April last year, captured more than $380 million of annualized GTV run-rate across over 25,000 storefronts by the financial year ended in March. Jai Kisan has financed over 15% of those transactions and said that visibility into high-quality commerce has enabled it to scale business by over 50% in three months. The startup currently operates in eight Indian states in South India and plans to scale across the country and increase headcount. Historically it relied on banks and other financial institutions to fund credit, but it now intends to finance 20% of loans itself as it expands. Jai Kisan operates a rural fintech full-stack platform that partners with input sellers, equipment dealers, traders and processors to originate small loans to farmers via a B2B2C distribution model. The startup digitally onboards end customers at partner outlets, enabling lenders to offer smaller, lower-cost loans and reducing intermediaries’ mark-ups. In the past six months it has disbursed over ₹500 million (~$6.56M) to more than 5,500 borrowers across 10 states and partnered with three banks and five non-bank financial institutions including Avanti Finance. Jai Kisan plans to use new funding to hire across operations and technology, strengthen its tech platform to attract DFIs and other lenders, and leverage customer data to expand beyond loans into credit, insurance, and savings products. The company also intends to scale geographically within India and eventually to international markets such as the Philippines.

Led · Series A · Nov 2020

WeedOUT, based in Ness Ziona, Israel, provides a green solution for outsmarting resistant weeds using a proprietary weed pollen derived from male plants. Its sterile pollen fertilizes female weed ovules to yield nonviable seeds, impeding the growth of new generations of resistant weeds while supporting improved yields and reduced herbicide need. The company is moving to launch its inaugural product targeting Palmer amaranth (Amaranthus palmeri), a major nuisance in the United States, Brazil, and Argentina. It plans to expand field trials in multiple U.S. regions, including Georgia and Nebraska, and is developing new formulations targeting different weed species. WeedOUT recently submitted a request to the U.S. Environmental Protection Agency for marketing approval. The company is led by Co-CEOs Efrat Lidor Nili and Dr. Orly Noivirt-Brik and recently raised $8.1M in Series A funding. Founded in 2016 in Israel, WeedOUT develops biological herbicides that imitate pollen so they can be applied while weeds are flowering to overcome herbicide resistance. Its platform uses the weeds' natural reproductive system; the first product specifically targets Palmer's amaranth, a glyphosate-resistant threat to cotton and soybean. The company is targeting North America as its first commercialization market and sought North American expertise from investors. Fulcrum Global Capital highlighted an investor base representing more than 500,000 acres of row crop producers and its partner Kevin Lockett joined WeedOUT's board. Co-founders Efrat Lidor Nili and Orly Noivirt-Brik previously worked at Monsanto's Israel unit after Rosetta Green was acquired. The Series A funds will be used for product development, scaling operations, and regulatory advancements. WeedOUT produces a green bioherbicide that artificially pollinates target weeds with proprietary weed pollen to induce seed abortion and prevent germination. The technology aims to stop the next generation of weeds and reduce reliance on higher chemical doses against resistant weeds. Its bioherbicide is described as non-toxic and non-invasive to crops. WeedOUT was named Best Israeli Agtech Company in the 2018 AgriVest Competition and was later selected as the winner of the Radicle Challenge Israel. As Challenge winner the company received a $250,000 award and access to Radicle Growth’s custom acceleration program, venture partners, and strategic alliances. WeedOUT plans to use the funding and acceleration support to expedite product development, manufacturing scale-up, and build on the success of field trials.

Participated · Series A · Sep 2020

Tarfin is a Turkish agriculture fintech that provides financing to agri-dealers and farmers and operates a digital platform for purchasing farm inputs. Its platform offers competitive credit terms and a mobile application that lets farmers buy fertilizers, protection products, seeds, and equipment directly. The company uses big data analytics and machine learning to compare input prices and surface lower-cost alternatives. Investors and company statements emphasize Tarfin's strong customer focus and data-driven decision making. Founded by Mehmet Memecan in 2016, Tarfin is positioning for geographic expansion and plans to layer on new offerings for its customers. Recently Yara Growth Ventures joined an $8 million financing alongside existing backers to support the company's next growth phase. Tarfin offers seasonal input financing for smallholder farmers by extending payment terms for fertilizers, seeds, feedstuffs and agrochemicals through a mobile app and retail partnerships. The company uses algorithmic risk modelling that emphasizes real-time ability to pay rather than collateral, aiming to offer lower interest rates than informal local lenders. It also packages pools of receivables—farmer input sales on credit—as asset-backed instruments for institutional investors. Tarfin operates with a network of about 240 partner retail locations and since launching in early 2017 has financed over 18,000 transactions and facilitated farming on more than 440,000 acres. The startup works with retailers as points of contact and decisioning partners rather than cutting them out of the value chain. Management says it will use the new funding to enhance its data analytics technology and mobile app to reach more farmers in Turkey and nearby geographies; investors have also highlighted plans to expand into eastern and southern Europe and potentially layer additional financial and insurance services. Tarfin is a Turkish digital platform that enables farmers to buy agricultural inputs through instant financing via point-of-sale technology and backend credit-scoring algorithms. Retailers of fertilizer, seed, and pesticides use Tarfin to offer farmers products on credit at lower rates—around 29% annually versus typical 45%—and with 10–20% lower price tags. The company launched in February 2017 and currently serves 1,250 farmers through 67 retail locations; it plans to reach over 7,000 farmers through 90 locations by the end of 2019. Tarfin projects this expansion will equate to over $20 million of inputs sold and financed and about 58,000 hectares served by end of 2019. Tarfin emphasizes using farm-level transactional data and statistical learning risk models to underwrite credit and to package receivables into portfolios for institutional investors. The company plans to grow its retail partner network, increase transaction volume per location, and expand into Romania, Poland, and the Balkan countries, pursuing a potential Series A in summer 2019.