A Guide to Startup Resources for Agriculture and Food Technology Innovation Bridging the gaps between innovation, investment, and business

Contents

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| WhyDoestheFoodandAgricultureTechnology/Innova?onLandscapeNeedSupport?

| ProposedCategoriesandDefini?ons

| LandscapeOverview

| InsightsandGaps

| Conclusion

| Appendix

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WhyDoestheFoodandAgricultureTechnology/InnovationLandscapeNeedSupport?Thefoodandagricultureindustryisundergoingunprecedentedchanges.Astheleastdigitizedindustryintheworld,accordingtoMcKinsey,theindustryislongdueanotherrevolution,andthereisapressingneedtoevolvethefoodsystemsoitcansupportfuturegenerations.Wearenowonthecuspofthatrevolution.Entrepreneurs,investors,policy-makers,andcorporationsfromallcornersoftheglobearegettinginvolved,culminatingin$4.6billionofventureinvestmentintothesectorin2015.Whilethefundingoptionsforstartupsareskyrocketing,therearestillchallenges.Inparticular,startupsmustovercometwokeychallenges,orsupportgaps,onthepathfromfoundationalresearchtoindustry-widediffusion.

Thefirstgapexistsbetweenthescienceandbasicresearchthatoccurswithinuniversitylabsandcommercial,sellableproductsandservicesthatfarmerscanutilize.Billionsofresearchdollarsarespenteachyeartodeveloptransformativetechnologiesandscientificbreakthroughs;yetsupport,includingbutdefinitelynotlimitedtocapital,isnecessarytotranslatethisresearchintoviablestartupbusinesses.Thesecondgapexistsbetweenagriculturestartupsandestablished,sustainablebusinesses.Since2013,$9.65billionhasbeeninvestedinagtechstartups,withfundinglevelsgrowingexponentiallyeachyear.Whileit’sstillearlydaysforagtechinvestments,therehavebeenafewsuccessfulventureexitsinthesector.TheClimateCorporation,adigitalagriculturecompany,andBeckerUnderwood,aseedtechnologycompany,werethesector’sfirstunicornsaftertheywereacquiredbyMonsantoandBASFin2013and2012respectively.It’suncertainwhatrolethepublicmarketswillplay,butmostventurecapitalfirmsarebettingthatstrategicacquisitionswillbetheirmainexitroute,whilesomeagtechcompaniesplantobecomestandalonebusinesses.Eitherway,theindustryneedstoseemoreexitstoensureagtechstartupsremainasustainableinvestmentdestinationforventurecapitalfirms.Thechallengeofbridgingthesegapsiscomplexandwillrequiremorethanfundingandtechnicalexpertise.Trustandcredibilityremainbarriers.Participantsinallroles,fromresearchersanduniversities,tocorporationslookingforthenextdisruptiveinnovation,togovernmentstryingtosecurethefuture,tofarmersandindustrygroups,needclarityonhowtobestgetinvolvedandeffectivelycollaborate.

Science/R&D Startups Companies

Gap Gap

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Inotherindustries,likesoftwareandevenhardware,ecosystemslikeSiliconValleyhaveenabledresearcherstoconnectwith,orevenbecome,theentrepreneursandinvestorsthatcanthen

turnbasicscientificinsightsintotransformativebusinesses.Incontrast,researchandindustryexpertiseinfoodandagriculturehasremainedinsideofuniversityandcorporatelabs.Theindustryisstrugglingtobringagreaternumberoftheseinnovationstomarketandtoscale.Resourcestosupportfoodandagricultureventuresinbridgingthesegapsareemerging.Atthetimeofthisreport,wehaveidentified77resourcesdedicatedspecificallytofoodandagriculture.Theseresourcesrangefromacceleratorstoincubatorstoventuredevelopmentorganizations(VDOs).

Throughdifferentapproaches,theseresourcefocusoncreatingandsupportingsuccessfulfoodandagriculturetechnologycompanies.Somefocusonprovidingfunding,whereasothersfocusonfosteringcollaborationbetweenscientists,engineers,famers,entrepreneurs,andinvestors.Whileresourceswillundoubtedlyhelptofillcriticalgapsinthecontinuumfromideatoimpact,thereisstillsignificantconfusionaroundwhatexactlytheyallofferandtheterminologyusedtodescribethem.Theindustrylacksacommonlanguagetodescribeanddifferentiatetheseresources.

0%5%10%15%20%25%30%35%40%45%

Accelerator CorporateIncubator

Incubator Network/Ecosystem

PitchEvent Prize VDO

ResourceCategoriesbyNumberandPercentofTotal

32 4 6 6 7 11 11

Agriculturalresearchinvestmenthasalwaysbeenacornerstoneofgovernmentinvestmentandyethasbeenanunderexploredareafordeal9low.Thislackofinvestmentdepthisdrivenpartiallybythefactthat

researchinagricultureisoftendisconnectedandwithoutthevisibilityofcomplementarytechnologysuitesandexpertise,developmentisoftenundertakeninavacuumwithonlyonepieceofthepuzzle.Ithasalsobeenlimitedbythefactthatthetalentpoolofag-entrepreneursandsophisticatedinvestorswithdomainexpertisehasbeenlimited.

–Kapyon(VDO)

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Thisreportlaysoutaproposalforhowtodefinethedifferenttypesofresourcesastheyemergeinthesector.Wedescribethecurrentlandscapeasitis,includingworkingdefinitionsforcategoriesofresources,andacomprehensivelistofresourceswithineachcategory.Ouraimistostarttoresolvesomeoftheconfusionandtostartthediscussiononthisgrowingecosystem.Weinvitecomments,suggestions,etc.aswehopethisworkcanleadtomoreclarity,efficiency,collaboration,andimpactfulinnovationacrossthefoodandagriculturelandscape.

TerminologyUsed• Resource:program,organization,oreventintendedtosupportearly-stage

ventures(e.g.,Food-X,FoodSystem6,AgTechAccelerator)• Category:genericclassificationforaresource(e.g.,Accelerator,Incubator)• Subsector:specificareaoffocuswithinthefoodandagriculturesystem(e.g.,

FoodTech,CPG,rowcropproductionagriculture,etc.).• FoodandAgricultureSystem:broadlydefinedvaluechain,frominputsand

productiontoprocessing,manufacturing,anddistribution.

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ProposedCategoriesandDefinitionsWehaveidentifiedsevencategoriesofresourcesthatcurrentlyexistwithinthefoodandagriculturelandscape,andproposethefollowingdefinitions.Intheappendixofthisreportwehaveincludedatablethatprovidesanin-depthcomparisonofthecharacteristicsofeachcategory.

AcceleratorDefinition:Setdurationprogramwhereacohortofselectedearly-stagecompaniesgetaccesstoabusinessdevelopmentcurriculumandmentornetworkResources:33Entrepreneurs Food-X SkywalkerAcceleratorAcceleratingAppalachia GoodFoodBusinessAccel. SproutAgritechAccelFoods H-FARMFoodAccelerator Sprout-XAgLaunch CIIE SquareRootsAgroInnovationLab IndieBio StartupBootcamp-FoodTechAmiusStartupPrgrm. IowaAgStartupEngine StartupNextbyLandO'LakesClimateVentures2.0 NXTPLabsAgroTechProgram TerraDigEatAll Prometheus TheYieldLabFoodFuture RevTech ThriveAcceleratorFoodHatch SimplotIgnite VillageCapitalFoodSystem6 SKU Acceleratorsarebyfarthemostcommonresourceinthelandscape,comprising

42%ofthetotalresources.Acceleratorsprovideentrepreneurswithaccesstoalargepoolofresourcesincluding,butnotlimitedtoinvestors,marketing/PR,anetworkofmentorsandbusinessadvisors,andastructuredcurriculumwithgoals/metrics.TheacceleratorsinthefoodandagriculturelandscapehavelargelyadaptedthemodelusedinothertechindustriessuchasIT.Acceleratorstendtoofferasetcurriculum,lastingaround4monthsonaverage,foraselectedcohortofstartups(8-9onaverage).Accelerators,onaverage,take4-9%equityinexchangefor$50k,inadditiontothein-kindvalueoftheservicesgiventothestartup.Someaccelerators,likeTheYieldLab,offermorecapital($100k).Thesetermsaresimilartothetechindustry,butnotallagtechacceleratorslaunchwithsettermsforfunding.

Therearesomesubtledifferencesbetweenacceleratorsinfoodandagricultureandthoseintech.Somefoodandagricultureacceleratorsarelookingforcommerciallyreadyventureslikeinthetechindustry;however,themajorityofacceleratorsfocusonsupportingearly-stageventures(idea,seed,or“early-stage”withoutspecifications).Further,manyacceleratorsinthefoodsystemofferremotecurriculumsandsomehavearollingacceptanceperiod,ratherthanafixedstartdate.

FoodandAgricultureacceleratorsaredispersedinternationally,with56%locatedintheUnitedStates.38%ofacceleratorsexplicitlysupportabroadrangeofstartups(e.g.,bothFoodTechandAgTech),ordonotspecifyaparticularsubsectorofinterest.34%ofacceleratorsexplicitlysupportAgTechventures.

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CorporateIncubatorDefinition:Accesstocapitalandresourcesofacorporation,usuallywithintentionofbeingacquiredResources:ChobaniFoodIncubator MarriottCANVASCoca-ColaVEB TheKitchenCorporateincubatorsareinnovationprogramsthatbringstartupsintoa

particularcompanywiththeexplicitpurposeofaddressinganeedofthecompanyoritscustomers.Essentially,corporateincubatorshelpcompaniesoutsourcetheirR&Dinhopesofmakingtheinnovationprocesscheaperandfaster.Theestablishedcompanycanscoutpotentiallydisruptivetechnologies,andthenbringthesestartupsin,therebygainingcontrolandensuringtheestablishedcompanywillbenefitdirectly.Startupsbenefittoo:thecorporationprovidesresourcessuchasphysicalspace(e.g.,lab),mentorship,accesstotheirindustryexpertiseandnetworks,andpossiblycapital(inexchangeforequity).Corporateincubatorsprovidesignificantlymorefundingthanaccelerators,oftencloserto$500k.Butstartupsenteringacorporateincubatormayriskappealingtoonlyonecompanyandlimitingtheirexitpotentialorcustomerbase.Corporateincubatorsinthefoodandagriculturelandscapearespreadinternationally,andmosthaveaCPGfocus.

Wehaveidentifiedfourcorporateincubatorprogramsexplicitlydedicatedtosupportingventureswithinthefoodandagriculturesystem.TwoareintheU.S.oneinIsrael,andonewithmultipleinternationallocations.Allfourcorporateincubatorsarefood(ratherthanagriculture)focused.Corporateincubators,liketheUnileverFoundry,thatmaysupportventuresinthisspacebutarenotentirelyfocusedonthisindustry,werenotincluded.

IncubatorDefinition:Physicalworkspaceorlabthatprovidessupportsuchastechnologicalexpertiseandmentorship;nofixedduration;rollingacceptanceResources:Ag-celeratorProgram UCDavis-HM.CLAUSELifeScienceInnovationCenter

Farm491 WesternGrowersInnovationCenter

RoCRE AgricenterInternational

Wehaveidentifiedsixincubatorprograms.FourareintheU.S.andtwoareintheUK.AllsixoftheincubatorsarefocusedontheAgTechsubsector,accordingtoourclassifications,thoughonlytwoofthefiveexplicitlymentiontechnologyasakeycomponent(i.e.,othersmentiononly“agriculture”).Incubatorsoftenhaveexplicitconnectionstogrowersorgrowerorganizations,thereforeofferingservicessuchaspilotsorfieldtrials.Manyoftheincubatorsalsohaveconnectionstouniversitiesandseektoprovideapathwaytocommercializationforemergingresearch.Incubatorssupportearlystageventures,potentiallyevenworkingattheideaorbenchstageofthedevelopmentprocess.

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Network/EcosystemDefinition:Platform,oftenvirtual,thatprovidesaccesstoresourcessuchasmentorsandinvestorsResources:AgFunder Coca-ColaFoundersAgri-TechEast Farm2050Branchfood RoyseLawAgTechInnovationNetwork

Virtualnetworksthatservetoconnectentrepreneurstoeachotherandtoresourcessuchasmentorsandinvestorsareemergingasalow-commitmentsupportresourceforfoodandagricultureventures.Someofthesenetworksareglobalandentirelyvirtual,whileothersfocusoncreatinganinnovationhubinaparticularregion.Thesixthatwehaveidentifiedsupportearly-stageFoodTechandAgTechstartups.Intermsofsupport,theseresourcesofferevents,hackathons,orworkshopsinadditiontovirtualservices(e.g.,newsletter,networkofmentors).OtherthanAgFunder,whichisacrowdfundingplatform,thesenetwork/ecosystemsdonotprovidefunding.

PitchCompetitionDefinition:One-timeevent,usuallyfocusedonconnectingstartupstoinvestorsResources:AgInnovationShowcasebyLarta InvestMidwestVentureCapitalForumFoodBytesbyRabobank MixingBowlGoldenBlenderAwardFoodFunded WorldAgri-TechInvestmentSummitGAIAgTechWeek

Wehaveidentifiedsevenpitchevents,sixofwhichhappenintheU.S.andonethatoccursinvariouslocationsinternationally.Thepitcheventsarebroadintermsofthesubsectorstheysupport.

Pitchcompetitionsgivestartupsanopportunitytopresenttheirvisionandbusinessplantoanaudience,usuallyfilledwithinvestorsandotherentrepreneurs.Pitchcompetitionstypicallydonotoffermonetaryprizes;thebenefitfortheentrepreneurisrecognitionandthechancetovalidatetheirideawiththejudgesandaudience.Pitchcompetitionsareone-timeevents,often,butnotalways,occurringaspartofaconference.Sometimes,finalistsmustpassthroughmultipleselectionroundsbeforebeingacceptedtothefinalpitchevent.Startupsaregenerallyjudgedonsomecombinationoftechnologicalviability,marketopportunity,originalityoftheidea,team,andqualityofthepresentation.Frequentlyinvestorsarethejudges.

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PrizeDefinition:Competition,usuallyculminatinginapitchevent,withmonetaryrewardResources:AgBiotechShowcase NetImpactFoodForward

AccentureFairFoodInnovationAward

SecuringWaterforFood

Fish2.0 SyngentaCropChallengeFoodEcosystemaccelerator ThoughtforFood(TFF)GROWBusinessPlanCompetitionbyAgri-techEast

VerticalFarmingInnovationAward

MITFoodandAgribusinessInnovationPrize

Unlikepitchevents,prizesrewardwinnerswithcash.Theamountofprize

moneyvariesbetween$5kand$50k,thoughmostprizesoffer$5k-$10kawards.Prizeshaveamulti-stageselectionprocess,oftenincludingamentorshipperiodwhereselectedstartupsworkwithmentorstorefinetheirideasandpresentationskills.Prizesculminateinapitcheventwherethewinnersareselectedbyapanelofinvestorjudgesoraliveaudience.Likewithpitchcompetitions,startupsaregenerallyjudgedonsomecombinationoftechnologicalviability,marketopportunity,originalityoftheidea,team,andqualityofthepresentation.Prizesoftenreceivesponsorshipfromoneormorecorporations.

Wehaveidentifiedelevenprizeeventsinternationally.FiveareintheU.S.,andthreeareintheNetherlands.Someprizestargetveryspecificareas,suchasseafoodorverticalfarming,whileothersarebroadandopentoventuresinmanysubsectors.

VentureDevelopmentOrganizationDefinition:PerformscommercializationfunctionseitherasaserviceorbylicensingIP;oftentheyareregionallyfocused,andhavetiestocorporations,universities,and/orgovernment.Resources:AgInnovationDevelopmentGroup KapyonAgri-FoodVentureAccelerationProgram(AVAP)

RutgersFoodInnovationCenter

AgTechAccelerator SteinbeckInnovationCenterBioEnterprise TrendlinesAgTechFlagshipVentureLabs WaikatoLinkVentureIncubator

GreatLakesAgTechBusinessIncubator

VDOsareuniquewithinthelandscapeinthattheysupportventuresatallstages,

frombenchtomarket.Forexample,aVDOmightworkwithemergingIP,licensingitandbuildingacompany.ThatIPmightbedevelopedin-house,orsourcedfrom

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externalorganizationssuchascorporateoruniversitylabs.SomeVDOsalsoworkwithestablishedstartups,providingsupportintheformofconsultingservicesoraccesstogrowersforpilots.Regardlessoftheoriginofthetechnology,VDOslooktobringaportfolioofinnovationstomarketthroughmultiplechannels.Technologiesmaybelicensed,soldentirely,orspunoutintoastartup.

VDOsarealsouniqueinthattheyseektoleveragepublicfunding,forexamplebyprovidinganacceleratedpathwaytomarketfortechnologiesemergingfromagriculturalresearchinstitutions.TheVDOmodelhasbeensuccessfulinotherindustries,suchashealthcare,butthemodelisnewandthereforeunprovenwithinAgTech.

VDOsmainlyrelyonthereturnsfromtheirportfolioofcompanies,aswellasfeesfromconsultingservices.Adiversifiedportfolioisthereforecriticaltosuccess;however,itisalsoachallengetofindthetalentrequiredtocommercializeabroadportfolio.SomeVDOshirethisexpertise,whileothersincentivizenetworksofconsultants.Further,bringingaproducttomarketistoughinallcases,yetVDOsmustattractorcreatesufficientdealflowwhilesimultaneouslycontrollingcosts.Despitethesechallenges,VDOsinfoodandagriculturehaveattractedinvestmentfromleadingagribusinesses.

WehaveidentifiedelevenVDOs,sevenofwhichareintheU.S.TenoftheVDOssupporttheAgTechsubsector;onesupportsCPG.

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LandscapeOverview

SummaryofResources:• Thereare77resourcesgloballythatarespecificallyintendedtosupportfood

andagricultureventures

• Over80%wereestablishedwithinthelastfouryears

• 58%arelocatedinU.S.

• Mostresourcessupportagricultureventures.Many(27%)supportmultiple

subsectorsand/ordonotspecifywhichparticularsubsectorsareofinterest.

• Mostresourcestargetearlystage-ventures(e.g.,idea/seed)

SubsectorsInthechartbelow,wehaveclassifiedthe77resourcesaccordingtothe

subsectorstheyclaimtosupport.Themajorityoftheresourcesincludedinthis

reportdonottargetaspecificsubsector(e.g.,CPG)ormarketvertical(e.g.,precision

agriculture);instead,theresourcesbrandthemselvesasprovidingsupportfor

“FoodTech”and/or“AgTech”startups.

WehaveclassifiedthosethatsupportbothFoodTechandAgTech,ormake

evenbroaderclaims,withinthe“Multiple/All”category.Thiscategorylargely

comprisesaccelerators.Acceleratorsoftenhavemultiplestakeholders,from

corporatesponsors,tomentors,toinvestors,totheirfund’sLPs,tothestartups

themselves,sohavingabroadareaofinterestmaybepartoftheirstrategytocater

tothesediverseinterests.Forstartups,thismayormaynotbeanadvantage.Onone

hand,adiversecohorthasabreadthofexperiencesandcanoffermultiple

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perspectives;however,theacceleratormaynotbeabletoproviderelevantresourcesforparticularareas.

CPGresourceswarranttheirowncategory,astheventurestheysupportaregenerallynottechnology-based,andthereforerequirementorswithdifferentexpertise.ResourcesdedicatedtoCPGventuresincludeaccelerators,corporateincubators,andoneVDOandonePrize.

Theresourceswithinthe“other”categorysupportanumberofmorespecificverticals,includingrestauranttech,gastronomy,alcohol,andcannabis.

Thoughsomeconsensusisemergingaroundthedefinitionofeachsubsector,forexamplefromthecategorizationprovidedintheoft-citedAgFunderbi-annualfundingreports,thesetermsarelargelyundefinedandremainextremelybroad.Thisisachallenge,asupstreamventures(e.g.,sensorsuitesthatenhanceon-farmdecisionmaking)facefundamentallydifferentobstaclesthandownstreamventures(e.g.,mealkits;seaweedchips).

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InsightsandGapsDespitetheremarkablenumberofresourcesacrossthefoodandagriculture

landscapethatarededicatedtosupportingearly-stageinnovation,challengesremainforallstakeholders.Herearethefivekeyinsightsgainedfromthisreport,includingoutstandinggapsandpromisingopportunities.

1. ResourcesneedtoclearlycommunicatetheirvaluepropositionThefoodandagricultureindustrylacksacommonlanguagetodescribeboththe

categoriesofsupportresourcesaswellasthevarioussubsectorsthatexistfromproductiontoconsumption.Understandingthedifferencebetween,forexample,anincubatorandVDO,orFoodTechandAgTech,isimportantasitenableseachresourcetodifferentiateitself.Currently,websites,andevenpressreleasesandmediacoverage,arelargelyinsufficientintermsofexplainingaresource’suniquevalueproposition,acceptancecriteria,andsubsectorsofinterest.Everyoneisusingthesamelanguage;or,evenworse,providingverylittleexternalinformationatall.Potentialinvestorsorcollaboratorsthereforestruggletonavigatethelandscape.

Further,eachsubsectorhasauniquesetofchallenges,andentrepreneursmustbeabletofinddedicatedsupportfortheirventures.Forexample,ventureswithinupstreamsubsectorsmayneedaccesstogrowersoron-farmpilots,whiledownstreamventuresmayneedtoworkcloselywithretailers.Go-to-marketstrategies,pricingmodels,andmarketingpersonaswillbedrasticallydifferentacrosssubsectors.Successfulresourcesmustappreciatethesedifferencesandprovideappropriateexpertisetotheventurestheysupport.

Further,asothertypesofsupportresourcescontinuetoemerge,it'snecessarytounderstandwheretheyfitintothelandscape.Aretheyaddressingaspecificgap,andifso,whichgap,andhowwilltheyattempttofillit?Acommonunderstandingofthecurrentlandscapewillhelpnewresources,andthosethinkingaboutcreatingnewresources,totargetagapinthelandscapeandpositionthemselvestouniquelyaddvalue.

Clarityonuniquevaluepropositions,acceptancecriteria,andareasofexpertisewillmakethematchmakingprocessbetweenstartupsandsupportresourcesmuchmoreefficient.

2. Whatisasustainablebusinessmodel?Iftheresourcesinthefoodandagriculturelandscapearegoingtohelpcreate

impactful,commercialcompaniesoutoffoundationaltechnologies,theythemselvesmustbesustainablebusinesses.Currently,thebusinessmodelformostoftheresourcesdependsonacombinationofsponsorshipsandgrants,consultingrevenues,andreturnsonequityinvestments.Therearechallengeswitheachoftheserevenuestreams.Forexample,sponsorshipsandgrantsaretemporaryandnotreliable,andstartupsmaynotbeabletoaffordconsultingfees.

Further,itisnotclearifraisingafundandrelyingonequityinvestmentswillwork.Aventurefundcanbehelpful:theresourcecanhirededicatedoperatorsandpaythemwiththefund’smanagementfees;theresourceitselfservesasapipelineofdealsforthefund;andventuresthatparticipateintheresourceknowthatthe

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resourcehasavestedinterestinsupportingthem.However,ifthefundisnotsuccessful,theresourcemayhavetroubleraisingsubsequentones.Also,thefinancialmodelfortheresourceisthendependentonVC-typereturnsandtimeframes.Itisnotclearifthiswillworkforallsubsectorswithinthefoodandagriculturelandscape.

3. Competitionwithtraditional(tech)resources Thoughonlypreliminaryresearchaboutacceleratorsuccessratesexists,data

indicatethattopprogramsareindeedvaluabletostartups(e.g.,Cohen&Hochberg,2014;Fehder,2015).However,notopprogramshaveemergedwithinthefoodandagriculturelandscape.Entrepreneursmaythereforebemorelikelytoapplytoestablishedresourcesinotherindustriessuchastech.Forexample,in2016theYCombinatordemodayfeaturedfiveAgTechstartups.

Competitionisoverallagoodthing,asitforcestheresourcestoadduniquevalue.But,atthisstageforfoodandagriculture,toomuchcompetitionmaycreateaviciouscyclewherebydedicatedfoodsystemresourcesstruggletogaintraction.

4. Wheredoinvestorsfit?AsleadingtechVCsturntheirattentiontowardtheopportunitiesinfoodand

agriculture,morefundsdedicatedtofoodandagriculturearelaunched,andnewformsofcapitalsuchasimpactinvestors,familyoffices,andcorporateventurecapitalfundsemerge,investorsofalltypesneedtodifferentiatethemselvestomaintainhighqualityandhighvolumedealflow.

Onestrategyisforinvestorstogetinvolvedwiththetypesofsupportresourcesoutlinedinthisreport.Forexample,investorsoftenserveasmentorsandadvisorstothestartupsinacceleratorsorVDOs.Investorsarewellpositionedtohelpstartupsrefinetheirpitchandde-riskthemselvestoattractcapital:theyknowwhattheyandtheirpeersarelookingforinaportfoliocompany.Investorscanalsoprovidefinancialsupportfortheresources,liketheVCfirmSOSVwhichbacksIndieBioandFood-X,orCultivationCapitalwhichbacksTheYieldLab.Investorsarealsoservingontheboardoroperatingteamofaresource,suchasstrategicinvestorsSyngentaandBayerservingontheAgTechAcceleratorboardofdirectors.Finally,investors,especiallystrategicinvestors,canofferconnectionstotheirparentcompaniesandaccesstoinfrastructure,distribution,orcustomers.

Investors,especiallyVCs,arealsoincreasingthespectrumofservicestheyprovidetotheirportfoliocompanies.Inaway,thismakestheinvestorverysimilartoothersupportresources,suchasanacceleratororincubator.Forexample,SonomaBrandsreferstoitselfasa“ventureincubator”forCPGfoodstartups,andRadicleCapitalreferstoitselfasan“acceleratorfund.”Neitherofthesetworesourcesisincludedinourcategorizationabove.Thoughadditionalsupportfrom

Wechose[aleadingtechaccelerator]becauseconnectionstothefoodindustryareabsolutelycriticalforus,butourbiggerprioritywaslearninghowtobuild

andscaleaB2B/enterprisetechcompany.Joiningamoretraditionalbusinessacceleratorhasallowedustodevelopthemoreprofessionalbrandasatechnologycompanytoappealtobothlarge-scalefood

businessesandVCs.Ialsothink[beingafoodcompany]differentiatedusintheapplicationprocessforsomeofthemoretraditionalaccelerators.

-FoodTechStartupFounder

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investorsisawelcomeadditiontothelandscape,thesenameshighlightthelackofconsensusaroundterminology,creatingconfusionforallparticipants.

5. Istheresufficientdomain-specificsupport?Tobridgethegapsbetweenresearchandcommercialcompaniesinfoodand

agriculture,significantdomainexpertisemaybenecessary.Inparticular,thisisachallengeforupstreamsubsectors(i.e.agriculture)giventhecomplexityofthenatural,technical,andsocialsystemsinvolved.Thoughmanyresourcescurrentlyseektosupportventuresinthisspace,therearestillafewcriticalgaps.Forexample:

• Lackoffocusonsmall,butimportant,nicheareassuchasrowcropcommodityproduction,specialtycropirrigation,andsoilhealth

• Lackofgrowerengagementacrossmostoftheresourcesinthelandscape• Lackofphysicalinfrastructure,suchaslabspaceandin-fieldpilotsUnfortunately,evenmanyofthemost“successful”agricultureventureshave

thusfarfailedtoachievedeepmarketpenetration.GrowersmaybeusingAgTechproducts,butunfortunatelytheseproductshavefailedtodemonstratesufficientvaluetoattractpayingcustomersonalargescale.Focusingonhigh-valueniches,engagingwithgrowers,andaccessinginfrastructurearenecessary.Ingeneral,thereisalackofsupport-andcapitalinparticular-forin-fieldagriculture,asmuchofthefundingiscurrentlyallocatedtodownstreamsubsectors(i.e.,FoodTech,andespeciallyecommerce).Thoughthisischangingastheindustryisbeginningtoacknowledgethisgap,providingmoredomain-specificsupportforAgTechventuresisahugeopportunityfortheresourcesinthelandscape.

Finally,itisalsoworthraisingthequestionofwhetheritismosteffectivetoprovidedomain-specificexpertiseattheresourcelevel.IfAgTechstartupscan,forexample,succeedbyworkingwithYCombinator,thenmaybededicatedfoodandagricultureresourcesarenotnecessary.Perhapsfoodandagricultureventuresshouldbeworkingwithleadingtechnologyandbusinessresources,butbuildingtheirteamswithin-housedomainexpertiseorlookingforinvestorswithdomainexpertise.

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ConclusionEffectivesupportforearly-stageinnovationwithinthefoodandagriculture

systemiscritical.Theresourcesidentifiedinthisreporthavethepotentialtohelpcrossthegapsbetweenfoundationalresearchandindustry-widediffusionandimpact.Butwestillhavealongwaytogoandmanyquestionsremainedunanswered.

Ratherthanattempttoanswertheoutstandingquestions,thisreportisintendedtostimulatediscussionandcollaborationwithinthefoodandagricultureinnovationecosystem.Inotherwords,wewantyourfeedback.Didweplacearesourceinthewrongcategory?Doyouhavesuggestionsforhowtorefinetheproposeddefinitions?Didwemissaresource?

We’dlovetohearfromyou.PleasecontactauthorSarahNoletatsvnolet@agthentic.com.

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Appendix:MethodologyandSummaryofCategoryDefinitionsThisreportisintendedtoprovideanoverviewoftheavailablesupport

resourcesforstartupsinthefoodsystem.Thedatawerecollectedviacompanywebsites,pressreleases,andnewsarticlesfromsourcessuchasAgFunderNewsandTechCrunch.Foreachresource,thefollowingdatawerecollected:name,location,yearestablished,subsectorsofinterest,targetcompanystage,fundingreceived/costtoparticipate,cohortsize,timeline,andwhethercompaniesmustparticipateinperson.Thoughwebelievethisreporttobecomprehensive,itispossiblethatsomeresourceswereunintentionallyexcluded.

Simultaneously,weconductedareviewoftheliteratureonearly-stageventuresupportresourcesfromotherindustries,suchashealthcare,software,andbiotech.Wespecificallyfocusedoncategorydefinitions(e.g.,incubatorvs.accelerator).Theseindustrydatawerecomparedwithourfindingsonfoodsystemresources,andultimatelytheexistingcategorydefinitionswereamendedasappropriatetoderivethedefinitionsproposedinthisreport.Thefollowingtypesofresourceswereintentionallyexcludedfromthisreport:coworkingspaces,crowdfundingplatforms,hackathonsandotherevents,commissarykitchensandkitchenincubators,andanyresourcesthatdonothavethefoodindustryasastatedfocus(e.g.,TechStars).

WhilethemajorityoftheresourcesincludedinthisreportarefocusedonprovidingsupportforFoodTechandAgTechventures,wehaveincludedresourcesforstartupsacrossthefoodsystem,fromupstreamagriculture,includinginputsandsyntheticbiology,toconsumer-facingproducts,suchasCPGfoodandbeverageandrestauranttech.Thoughitisclearlyusefultoentrepreneurstounderstandthefocusareandexpertiseofaparticularresource,ourfindingsindicatethatmanyoftheresourcesthemselvesdonotprovidespecificguidanceontheirparticularsubsectorsofinterest.

Thetablebelowprovidesasummaryofthecategoriesanddefinitionsproposedinthisreport.

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