Cultivian Sandbox announced the closing of its third fund, Cultivian Sandbox Food & Agriculture Fund III, at $135 million.
Since the closing of its Fund I in 2008, when Cultivian was one of the first and only venture capital funds exclusively investing in food and agriculture, the firm has raised nearly $300 million collectively across its funds, with its most recent predecessor fund closing in 2013 at $114 million with a portfolio of 13 investments. Overall, the firm has made 25 investments and has executed five exits.
The fund has a stable of investors representing leaders across the food and agriculture chains including Archer Daniels Midland Company, Corteva Agriscience, water hygiene and energy company Ecolab, animal health tech company Elanco, Griffith Foods, agricultural cooperative GROWMARK, Koch Ag & Energy Solutions, innovative potato producer R.D. Offutt Company, Smithfield Foods, and Sumitomo Chemical America, among others.
“We value the experience of the Cultivian team, and their engagement with us as Fund investors,” said Neal Gutterson, SVP and chief technology officer of Corteva Agriscience, Agriculture Division of DowDuPont. “Cultivian continues to be an ag and food industry thought leader, providing us with forward-leaning visibility into promising technologies for better meeting the needs of farmers and consumers.”
Shifts across multiple fronts are leading to an evolution of the $5 trillion food and agriculture industry. These drivers include changing demographics, consumer preferences, and concerns over food safety, security, and sustainability. Cultivian recognizes that emerging technologies hold the potential to foster this evolution while also meeting the needs of all parties along the supply chains.
“Twenty years ago, the public wanted food that was healthy, inexpensive and tasty,” said Nick Rosa, managing director, Cultivian Sandbox. “Now, in addition to those requirements, there is a greater interest in how our food is made and where it comes from.”
The strategy carried out by Fund III will echo that of it predecessor; seeking out investment opportunities in technologies advancing animal health and protein production, crop production, food tech and safety, sustainability, and water technology. The firm typically makes investments between $5-$15 million over the lifetime of each portfolio company, and prefers to be a round leader. Geographical preference is open, however, when investing outside of North America, the firm looks to invest with a local co-investor.
“Consumers want foods that are sustainably produced and traceable, with benefits beyond basic nutrition,” said Rosa. “We’re investing in startups that can help meet these new standards for productivity, environmental sustainability, and social responsibility.”
As such, Fund III has already made three investments:
Full Harvest – Cultivian Sandbox participated in an $8.5 million funding round in August 2018 for this agtech platform providing a new food supply chain model to mitigate food waste.
Geltor – In October 2018, Cultivian Sandbox led an $18.2 million Series A for this bio-design company that develops high-value, animal-free, GMO-free proteins.
Phylagen – In February 2019, Cultivian Sandbox co-led a $14 million Series A along with Breakout Ventures and Working Capital for this San Francisco-based startup building the largest environmental microbiome database in the world.
“Until recently, the task of protecting crops from weeds, diseases, and insects fell exclusively to synthetic chemistry,” said Ron Meeusen, PhD, managing director of Cultivian Sandbox. “It did a marvelous job of keeping food supply ahead of population growth. Now that consumers want alternatives to synthetic chemicals, the industry is adapting. Fund III will finance biological and physical alternatives that address consumer demands.”
-Lynda Kiernan