August 19, 2024

By Gerelyn Terzo, Global AgInvesting Media

Now that Seattle-based agtech Terrantic’s $3.5 million oversubscribed seed round is behind it, the startup is ready to take more ground. Despite an uncertain economic backdrop in which investors are demonstrating caution, Terrantic, in its latest fundraising, was able to secure not only backers but partners whose values align with that of the startup. Perhaps it has something to do with the company’s new generative AI assistant it calls Terri.

Terrantic, whose business is predicated on the reality that 50 percent of food goes to waste in the United States each year, is on a mission to make the food supply chain more efficient, from growers to packhouses, by solving what has become a data problem for the industry. While there’s no shortage of data pouring in to the food supply chain, owing to the rise of IoT connectivity devices, information around that data is often lacking, placing the industry at a disadvantage.

After successfully bringing its tech offering to the mining sector, Terrantic technologists have returned to their farming roots and introduced their data analytics software to growers, processors and packhouses. Terrantic’s solution is an AI-powered contextualization engine that helps market participants make sense of data with a view to recapturing lost margins. The numbers don’t lie: Terrantic’s tech has helped its customers improve shelf life by 20 percent and production throughput by 40 percent. Now Terrantic is looking to grow its reach and has other plans up its sleeve for the rest of the year.

Terrantic Co-Founder and CEO Krishna Srinivasan spent some time with GAI News to share more details about its technology and the fundraising environment for agtechs as well as the company’s future growth aspirations.

1.) GAI News: As the ag industry begins to embrace AI, what are some of the challenges around datasets?

Srinivasan: Data sets are indeed a significant part of the challenge. Ag deals with highly variable data differing by commodity, and influenced by factors like weather, soil and local ecosystems. Specific to datasets, there are challenges around gathering data from a multitude of sources like satellites, drones, sensors, human inputs, tabular information from a Farm ERP or management system, etc. While Terrantic’s focus is on processors at least one step removed from the farm, we have learned that this data from the farm is crucial to downstream decisions. Critical challenges beyond the data itself include connectivity and infrastructure, and the cost of obtaining data.

2.) GAI News: How does Terrantic’s technology address and solve these issues?

Srinivasan: Terrantic’s solution empowers users to create detailed process maps for various workflows and seamlessly integrates their data into these workflows. This powerful combination allows us to embed business logic and decision points directly into the data flow, providing true context to information while creating an ‘intelligent data foundation”. Building upon this foundation, we develop advanced analytics and configurable data product applications. These tools enable our customers to enhance product quality, minimize waste and boost operational efficiency. By unifying processes, data and analytics, Terrantic delivers a comprehensive solution that transforms raw information into actionable business intelligence, driving tangible improvements across our clients’ operations.

3.) GAI News: Could you tell us where Terrantic fits into the ag supply chain big picture?

Srinivasan: We can work with pretty much any part of the supply chain, but we’re really focused on the middle part – you know, where the food is processed, packaged and sent out. That’s where we think we can make the biggest difference. But here’s the cool part – we don’t just look at that middle bit. We pull in information from the beginning of the chain, like the farms, and from the end, like the stores. This way, we can help the middle part run smoother.

As for the data we use, we take it all in. We’re talking about data from computer systems (think ERP, WMS, CRM, etc.) that manage inventory and orders, data from machines on the factory floor, data from sensors and tracking devices, and even data that people type in themselves. Each piece of data helps tell the story.

But here’s the real magic – when we put all these pieces together in the right way, we can see the big picture. And that big picture? It’s way more valuable than just looking at each piece on its own.

4.) GAI News: As a privately held company, how would you characterize demand for your agtech solution?

Srinivasan: We’re still pretty small but growing. Across all our customers right now, we have over 100 people actively using our platform. Most of our customers are in Washington state, but we’re not stopping there. In the next year, we’re aiming to expand into California. We also want to work with more types of food products. It’s exciting because each new customer and each new type of food helps us learn and improve our system even more.

We’re taking it step by step, but we’re really excited about where we’re headed. Every day, we’re helping food producers see what’s going on in their operations and run things more efficiently. And as we grow, we’ll be able to do that for more and more businesses.

5.) GAI News: How would you describe the temperature in the fundraising environment for agtech startups?

Srinivasan: To be honest, it’s a tough time for agtech companies like us to raise money. Food prices aren’t great (from a producer perspective, not retail), labor challenges are big, regulation is tightening and companies aren’t spending as much on new tech. This makes investors more cautious.

Our own fundraising took about six months, which is shorter than many but middle of the road nowadays. We think it was worth the wait. We found investors who really care about what we’re doing. They know a lot about our industry and want to make a difference, not just make money.

Even in this tough market, companies can still raise good money if they’re solving real problems or can show clear benefits. The tricky part is getting farmers and food producers to adopt new tech. These industries aren’t usually quick to jump on new technology.

That’s where we think AI can make a big difference. Instead of expecting people to read complicated reports or figure out confusing graphs, AI can help make sense of all the information. It’s like having a really smart friend who can look at everything happening in the food production process and tell you exactly what you need to know and do.

We believe this approach can help the whole industry take a big leap forward in how they use information. It’s not just about collecting data, but about making it useful and easy to understand. We’re excited about this because it’s not just about making businesses run better. It’s about improving how we produce food, which can have a real impact on our planet. That’s what keeps us going, even when things get tough. So, while it’s not an easy time for companies like ours, we’re still optimistic. We think we’re onto something important, and we’re going to keep pushing forward, one step at a time.

6.) GAI News: Can you offer us a glimpse into Terrantic’s future pipeline?

Srinivasan: We have a lot in the kitchen for 2024 and 2025. First off, we’re working on some cool new updates for our products. I can’t spill all the beans, but trust me, our customers are going to love it. We’re also reaching out to new kinds of food businesses. We think our system can help all sorts of food companies, expanding from the ones we’re working with now.

Our big focus is making different systems in the food supply chain talk to each other better. The whole data interoperability piece will be a game-changer for the entire industry. Now, we’ve set some goals for ourselves, and I’ve got to say, we’re right on track to hit them. But to keep this momentum going, we need more hands-on deck. We’re looking to bring on some talented folks to join our team, especially in sales and engineering.

Oh, and here’s something really cool — we’re working on making our AI even smarter. We’ve created an AI assistant called Terri, and in the next year, we’re going to teach Terri some new tricks. Terri’s going to get even better at understanding how different parts of the food business connect and at giving helpful insights.

So yeah, 2024 and 2025 are shaping up to be pretty big years for us. We’ve got a lot of work ahead, but we’re pumped about it. It feels like we’re on the verge of something really special in the food industry, and we can’t wait to see where it leads!

GAI News would like to congratulate Terrantic and thank Srinivasan for his time and contribution.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.