Cavallo Ventures, the venture capital arm of Wilbur-Ellis, a global leader in crop-protection, precision agtech, marketing, distribution, seed, and nutritional products has made a seven-figure investment in Crop Enhancement Inc.
Founded in 2011 in California by scientist, entrepreneur, and former professor of chemical engineering at UC Berkeley, David Soane, Crop Enhancement is a developer of sustainable agrochemical formulations targeting high value fruit and vegetable crops which are able to improve crop yields, reduce the need for synthetic pesticides, and enable precise and effective delivery of fertilizers.
CropCoat, the company’s initial product, is a proprietary protective coating that protects fruit and vegetable crops by modifying plant surfaces (leaves, stems, fruits, and seeds) to be stronger and more resistant to pests and diseases. This technology, that is focusing on major fruit and vegetable crops across North America, Southeast Asia, China, Latin America, and West Africa, not only helps the environment through the reduction in the use of synthetic chemicals, but also improves the well-being and health of farmers and their workers.
“Growers around the world tell us that they want solutions that are good for their farms as well as the environment,” said Kevin Chen, Ph.D., CEO of Crop Enhancement. “In trials we’ve completed, our first product, CropCoat, is proving to be an effective and sustainable crop protection technology. As we expand our efforts to fruits and vegetables here in the U.S., we’re delighted to welcome Cavallo Ventures into the fold.”
Film Stars
Such emerging ag technologies that use film or coating methods to protect crops and foods, and reduce pesticide and preservative use, are quickly commercializing and gaining funding.
In July of last year, Apeel Sciences announced $70 million in new funding led by Viking Global Investors and including Andreessen Horowitz, Upfront Ventures, and S2G Ventures, among other unnamed participants.
Across the U.S. market alone, the retail sector generates 8 million tons of waste per year through distribution centers and stores, representing a loss of $18 billion. In addition, U.S. households throw away more than 400 pounds of food per person per year, losing an average household of four $1,800 annually, according to Apeel.
To combat these numbers, the company has developed a 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.
Two months later, in September 2018, Australian agtech biofilm company OneCrop secured a multimillion dollar investment from the Kahlbetzer family’s Twynam Group.
OneCrop makes cost-effective degradable films made from 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. Once used, the films break down in approximately four months.
Enhancement
This investment by Wilbur-Ellis through Cavallo Ventures, is indicative of the company’s goal of striving to meet and address widespread trends that are disrupting how food is produced. It is also indicative of the company’s commitment to the needs of the thousands of farmers it serves, who are themselves responding to demands from both food companies and consumers to greater sustainability and less chemical use in food production.
“We’re glad to be able to back the Crop Enhancement team as they develop innovative solutions to long-standing challenges in production agriculture,” said Mike Wilbur, president and CEO of Cavallo Ventures. “Their unique approach addresses trends in the food and ag industry calling for products that are more sustainable and friendlier for growers, their farms and the global ecosystem.”
-Lynda Kiernan