September 21, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Advancing sustainable biotechnology is quickly proving to be key in addressing the impacts of food insecurity and climate change, and for meeting the need for resilience in global economies. 

As a vehicle to help foster this evolution, a new $50 million Canadian venture capital fund called Nàdarra Ventures has been launched with foundational investments of C$20 million from Farm Credit Canada (FCC), Natural Products Canada (NPC), and various Canadian family offices, which closed this summer. 

“FCC is pleased to be a founding investor in Nàdarra Ventures’ pursuit of sustainable biotechnology that will drive solutions to help solve some of the food security and environmental challenges the world faces,” said Rebbecca Clarke, vice president of FCC’s venture capital program. 

“Food insecurity and challenges related to sustainability are hitting consumers hard, both in Canada and around the world,” added Malcolm Fraser, managing partner, Nàdarra Ventures. “There’s an urgent need to scale sustainable biotechnologies that take aim at environmentally friendly agricultural practices, including the carbon footprint of food, water, and packaging supply chains.”

With a name meaning “natural”, Nàdarra is anchored by the notion that transformative solutions are to be found in nature. The fund is the culmination of years of work on the part of NPC, a national innovation cluster for biotech companies to support the growth of Canada’s biotech and agtech sectors, that will provide Nàdarra access to a pre-vetted pipeline of companies through its nation-wide team of regional directors. 

“NPC is fortunate to work with some of the world’s leading companies tackling the world’s biggest challenges,” says Shelley King, CEO, NPC. “These companies were the inspiration for our initial investments, and ultimately led to the foundation of Nàdarra.”

“We are proud of our role in this important new Canadian investment fund, and look forward to seeing the results of its tremendous investment opportunities.”

“The global demand for these solutions has created a USD$1 trillion market opportunity – one that we believe Canadian entrepreneurs are uniquely positioned to capture.”

One-in-eight Canadian jobs is related to agriculture, and biotech drives an C$86.5 billion bio-economy employing 485,000 people in Ontario alone, according to MaRS. 

“Agriculture and forestry use biotechnology to enhance their productivity, diversify their production and enhance their stewardship of Canada’s natural resources,” notes the report: Canada’s Bioeconomy Strategy: Leveraging Our Strengths for a Sustainable Future. “The chemical and manufacturing industries use biotechnology to enhance their performance and reduce the cost of their products, and to lessen their environmental footprint. Canada is home to a healthy and vibrant biotechnology ecosystem with industry clusters located in every province. In this context, the Canadian industrial bioeconomy is well-positioned to deliver very significant economic and social benefits to this country.”

Investing strictly in Canadian companies, making Seed/Series A investments between C$1-C$3 million,  Nàdarra will have a 10-year span and will require a five-year commitment. Once it begins to build out its portfolio, the fund will leverage its founders’ direct experience in the agtech ecosystem to actualize long-term, sustainable growth within the Canadian biotechnology and agricultural sectors. 

Clarke commented, “We see this as an investment in the long-term health and vitality of the Canadian agriculture and food industry and look forward to seeing what bright, innovative Canadian entrepreneurs develop, grow and scale because of the investment and support they receive from this fund.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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