September 28, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Five years after the success of its first fund, Capagro I, the pioneer European agtech and food tech venture capital fund, Capagro announced the launch of Capagro Agri-Food Innovation Fund II (Capagro II) with €200 million (US$192.52 million) to support the growth of the most promising startups in the EU agtech and food tech spaces. 

Launched in 2014 and active through 2022 with a total fund of  €124 million (US$119.36 million), Capagro I mobilized 13 leading industrial groups and financial institutions, built a portfolio of 13 French and European startups in robotics, ag equipment, ag e-procurement, bio-sourced materials, personalized nutrition, alternative proteins, e-commerce, indoor farming, and food traceability.

Now, this current round of fund-raising for Capagro II remains open to institutional and industrial investors and family offices, but has already gained the backing of Avril Group, LSDH, Terrena, Bel Group, Crédit Agricole Group (IDIA), and Bpifrance, along with the agricultural cooperative group Euralis.

Like its predecessor fund, Capagro II will be targeting the entire agri-food value chain, from farm to fork, taking an “ecosystemic” approach that integrates considerations for the planet, humans, and animals. Key sectors of interest will be bio-intrants, robotics, speciality ingredients, innovative packaging, alternative proteins, personalized nutrition, new distribution channels, and high-potential emerging sectors such as carbon farming.

“As a catalyst for innovation in the agri-food ecosystem, Capagro draws on a proprietary open innovation platform that not only favors the emergence of champions but also facilitates the adoption of innovations by our partner investors, which include agricultural cooperatives and major food industry groups,” noted Anne-Valérie Bach, managing director, Capagro.

Bach goes on to explain how this unique position creates the opportunity for three-way value creation: in finance – through the optimization of their risk/reward profile; via strategy – through the synergies generated between the companies in the portfolio and the investors; and in impact – by supporting companies with core activities tackling current environmental and health challenges.

“Capagro has already helped to create 560 jobs in the sector through this original approach, contributed to achieving more than three-fold increases in the turnover of the supported companies, and has produced a knock-on effect among third-party investors, generating more than four times the sum invested by Capagro,” added Bach.

Capagro also noted of the timing of the launch of Fund II, citing the high rate of growth in investments in the space throughout 2021-2022. In 2021, nearly $52 billion was invested in the global agrifoodtech sector – a year-on-year increase of 85 percent over 2020. Over that same period, in the EU, $9.2 billion was invested in the agrifoodtech ecosystem, accounting for almost 20 percent of the global market. Also noting that there are 55 worldwide agrifoodtech unicorns, of which, 25 are European. 

“The current context reminds us of the urgency of meeting the climate, food, health, social and economic challenges impacting agriculture and food,” said Tom Espiard-Cignaco, president & managing director, Capagro. “Innovation in European AgriFoodTech is already providing practical answers to these challenges but also needs financial support at a level proportionate to its potential.”

“Supplying a flow of capital into these dynamic companies is not only a means of meeting these challenges but also an opportunity to nurture new European champions in AgriFoodTech,” continued Espiard-Cignaco.

“By supporting these companies as they scale up and accelerate their growth, this new fund is addressing promising young companies that generate sustainable innovations able to bring deep-rooted transformations to the agriculture and food sectors.”

The launch of this fund is concurrent with the announcement of its first investment as lead investor in a €10 million (US$9.63 million) round for Cuure, an innovative, holistic, and personalized health startup combining science and technology launched by Hugo Facchin and Jules Marcilhacy in March 2019.

“This new investment will allow us to share our vision of health with as many people as possible – easy to access, holistic and tailored to everyone’s needs,” said Hugo Facchin, co-founder and CEO, Cuure.

“We are also actively working on the internationalization of the Cuure experience, which is already available in several European countries, including Italy, Germany and Spain. Our ambition is to make Cuure an internationally recognized health and well-being reflex, the European leader in personalized health.”

~ 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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