July 8, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Canadian investment firm Tall Grass Ventures (TGV) announced the oversubscribed final close of its inaugural fund – Tall Grass Fund I – at CAD$32 million. 

While there are myriad advancements on the horizon, the agricultural sector demands urgent attention due to the intensifying impacts of climate change, increasing food demand, fragile supply chains, rising prices, and global geopolitical tensions.

Actively making pre-Series A investments in companies across the agriculture and food supply chain, Fund I primarily focuses on companies that have strong applicability to Canadian agriculture. To-date, the fund has made 11 investments ranging from gene editing and biological solutions to solutions for specialty crops, plant-tissue sampling, grain grading, and beyond. 

In contrast to many investors that have a singular focus on returns, the Tall Grass team takes a wider view, examining how they are uniquely positioned to add value – a balanced, full-cycle strategy they believe leads to higher returns, called “Counterpoint”. 

Through its “Counterpoint” mandate, Tall Grass embodies a first principles approach to Fund I, working closely with their portfolio management teams to help build category defining businesses with a global impact in the food and ag spaces, and to foster inter-portfolio collaborations that have proven to drive market leading financial results.

“As an emerging fund manager, in many ways we are a start-up similar to the companies in  which we are investing,” said Wilson Acton, managing partner, Tall Grass Ventures. “Since our inception, we have stayed true to our approach focusing on how we are uniquely positioned to add value to a portfolio company as opposed to a singular focus on returns. The result is a balanced, full cycle view that focuses on the inputs of building great companies which drives the output of leading returns. The support that we’ve received from the capital markets has been validating for our approach and focus.”

Acton continued, “Our team deeply believes that agriculture is underserved by innovation investment and founders need real, tactical support more than just capital. While our team’s foundation is built on shared values and a passion for agriculture, our strength lies in our differences. This collaborative approach that embraces diverse viewpoints has shaped our firm’s evolution and guides how we invest and create value for our portfolio companies.” 

The firm explained that the upsizing of the fund is directly tied to heightened investor interest and conviction in their values-forward approach together with the opportunity to advance a sector that is a cornerstone of Canada’s and the global economy.

This interest has come from a diverse range of backers. At the end of January 2024, TGV announced that following a challenging year in regards to fundraising, it had welcomed Farm Credit Canada (FCC) as one of Fund I’s largest investors.

At the time, FCC joined an impressive roster of supporters including leading grain and livestock producers from Manitoba and British Columbia; livestock feeders; commodity brokers and traders; financial services firms; private enquiry investors; technology founders; ag machinery executives; and those from the energy, construction, and marketing sectors, and beyond. 

Now, with the Fund’s final close, TGV announced the addition of Manitoba First Fund – a CAD$100 million provincially funded venture capital organization formed in 2023 – as one of its leading investors. Manitoba First Fund and FCC are together leading a community of investors not only keenly interested in fund performance, but have a vested interest in innovation and resiliency across the ag sector. 

“Manitoba First Fund is proud to invest in Tall Grass Ventures, recognizing their differentiated approach to addressing critical challenges that are central to Manitoba’s economic growth,” said Ken Ross, CEO, Manitoba First Fund.

“We  believe their focus on early stage, agricultural innovation will create significant opportunities for Manitoba’s economy and communities, fostering growth and sustainability in a vital sector. This  is the first start-up fund that we have invested with, and we continue our focus to add further start-up funds to broaden our portfolio.”

“This has been an incredible and special journey alongside a fantastic group of people,” commented Chris Edwards, managing partner, TGV. “It is extremely rewarding seeing what a group of motivated and driven individuals can do when they put their heads together.”

“Every partnership we developed came from a relationship that was genuinely and purposefully nurtured, resulting in both quality and depth. This symbiosis across our network has allowed us to create a continuous feedback loop which ultimately drives higher performance for everyone.”

~ 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. She can be reached at lkiernan-stone@globalaginvesting.com.

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