By Lynda Kiernan
Las Vegas-based agtech startup Cultiva announced it has secured a $2.94 million investment from Advantage Capital to drive expansion and growth at a time when COVID-19 poses a significant challenge.
Founded in 2011, Cultiva’s proprietary technology focuses on what is called the plant cuticle of high value crops. Only 10 microns thick, the microscopic cuticle is the layer that encompasses the cellular wall of fruit as well as the leaves, stems, and trunk of the plant, acting as armor to defend against excess water loss or uptake, and to protect against UV radiation, or attacks from fungi, pathogens, or pests.
The cuticle is made up of two layers that are produced by the epidermis of the fruit during early growth stages. The first layer is made up of waxy polymers called cutin, and is embedded with polysaccharides made of fatty acids that provide rigidity that allows the plant to grow. It also enables the exchange of gasses, nutrients, and transpiration. The second layer is made of hydrophobic waxes, and factors into the plant’s permeability to water. The cuticle also protects fruit against sunburn and excess heat by containing pigments that provide additional sunscreen properties, while the waxy layer reflects UV waves.
This investment was made by Advantage Capital in connection with the Nevada New Markets Job Act – legislation designed to support the state’s economy – and will be used by Cultiva to expand its team later this year, as well as to expand R&D and ramp up production of its proprietary, food-grade biofilm, SureSeal™.
Composed of food-grade phospholipids, SureSeal acts as a cuticle supplement, providing a protective film that maintains the integrity of fruit and its foliage resulting in improved quality and elasticity, better and more marketable yields, a longer shelf life, and greater heat and UV tolerance.
“This is an important time in our company’s expansion,” said Luis Hernández, CEO, Cultiva. “Our product allows farmers to improve crop quality and preserve shelf life. Cultiva finds itself in the key role of supplying growers with an essential input product as they keep our world fed during the pandemic and beyond. This investment also allows us to continue to manufacture our product, provide farmers with critical supplies and bring jobs to the area.”
Dress in Layers
As sustainability becomes paramount, and the fight against food waste is taken up by more and more innovative startups, various crop and food coating technologies are being developed and are gaining the attention of investors.
Just last month, Crop Enhancement raised a $8 million Series B led by Spruce Capital Partners to advance its proprietary, sustainable bio-compatible chemistries that when sprayed using conventional farm equipment, can protect plant surfaces, leaves, stems, and fruit, to significantly improve resistance to pests and diseases and reduce the need for synthetic pesticides and herbicides.
Apeel Sciences, however, might be the pack leader in terms of capital raised, after securing $70 million in 2018 led by Viking Global Investors along with Andreessen Horowitz, Upfront Ventures, and S2G Ventures.
This capital is being used to advance Apeel’s method for extracting molecules from organic agricultural waste and byproducts – such as grape skins that remain after wine production processing or banana peels, leaves, or stems left over after harvesting – to create undetectable edible barriers derived from natural plant extracts. These barriers significantly slow the process of decay of fresh produce, making each piece of fruit its own microclimate and extending shelf life without refrigeration, a controlled atmosphere, or preservatives.
Other coating technologies are being developed by Massachusetts-based Cambridge Crops, which uses a natural protein extracted from silk through a water-based process to create a solution that can be applied to the surface of good items to form an undetectable, protective layer.
And Australian agtech startup OneCrop, that has developed a biodegradable, pre-emergence agricultural film for use with horticultural, row crop, and broadacre operations made of hyper low-density polymers, non-GMO starch, and non-degradable compounds that store soil moisture and increase soil temperature resulting in higher yields, saving water, and increased sustainability.
Amid this increasingly crowded field, Cultiva has a market presence in both the U.S. and abroad, and continues to engage in collaborative initiatives with research institutions and companies to develop products in new markets.
And amid the pandemic at home in Nevada, Cultiva is considered an essential business, and continues to operate while adopting social distancing practices.
“Advantage Capital has a long history of investing in businesses based in underserved communities in Nevada and across the country,” said Abhi Chandrasekhara of Advantage Capital. “We have partnered with Cultiva since the company’s early days and are excited about the strong growth trajectory for its products around the world. We are excited to deepen our relationship through this additional investment and continue supporting businesses like Cultiva nationwide.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.