July 25, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Flora Ventures’ new fund is taking a unique approach by being the first VC fund to tap what the firm stated is the world’s original innovative agriculture pioneer – the Israeli Kibbutzim – as anchor investors and partners. 

Not only that, but with a launch of an $80 million fund and a first closing with capital commitments totaling $50 million, this investment vehicle is the largest Israeli-based agrifood VC to-date, and is the largest new Israeli VC fund to complete a first closing during 2023 across all tech investment verticals. 

The initial fund raise included top-tier strategic partners – which included Sadot Kibbutzim, a co-op of more than 185 Kibbutzim with an agricultural output in excess of $3 billion that is exported to over 100 countries – that will offer the fund’s portfolio proprietary access to agricultural land, production capabilities, and expertise to drive initial proof of concept and the ability to scale their technologies. 

Other anchor investors that have participated in this initial close are:

Haifa Group – a leading global plant nutrition and special fertilizer company with 18 worldwide subsidiaries that distribute to more than 100 countries. Its dedication to sustainability, innovation, and precision agriculture make it an optimal partner in helping Flora’s startups in their efforts to build go-to-market capabilities. 

Harel Group – As Israel’s largest insurance and finance group with more than $100 billion in AUM, Harel Group will provide Flora’s portfolio access to a top tier institutional and financial investor with the ability to provide support and follow-on investments. 

Flora Ventures is also fortunate in its co-founders: Gil Horsky, former Mondelēz executive, corporate venture investor, and leader in the global agrifood ecosystem, and Esther Barak-Landes, a highly regarded VC investor and co-founder of Nielsen’s incubator and investment arm. Flora Ventures is investing in early-stage startups from two of the leading agrifood ecosystems: Israel and Europe, which are building a healthier, more sustainable, and resilient agrifood system, and supporting those ventures as they scale globally. 

Together, Horsky and Barak-Landes stated that they saw the opportunity to create a fund leveraging their complementary skills and networks, bringing together Horsky’s leadership experience with multinational food companies such as Mondelēz, PepsiCo, and Kraft Foods; and Barak-Landes’ investment record in disruptive tech startups, including leading first rounds for Payoneer, Amwell, and Playtika, which came to be publicly traded unicorn tech companies. 

“I’ve been fortunate in my career to lead important VC deals in the retail-tech, fintech, and digital transformation sectors, which enables me to reapply proven technologies and business models to the agrifood industry where it is greatly needed,” said Barak-Landes. 

“I am excited to bring my skills to finding and fueling start-ups from Israel and Europe that are good for people and kind to the planet, while helping to build the next generation of agrifood unicorns.”

Horsky added, “Working for leading food multinationals, as well as co-founding one of the industry’s most successful corporate venture capital (CVC) and incubation initiatives in Mondelēz, taught me the value of having design partners early on.”

“That’s why we are excited that FLORA can provide our start-ups proprietary access to Haifa Group, Sadot Kibbutzim and Harel Group, which are among the most innovative and agile design partners in the industry.”

Flora Ventures has already completed its first investment in Arrakis Bio – an Israeli, stealth-mode startup developing a breakthrough technology that they stated is poised to revolutionize the production and utilization of animal-free, high-quality, and pure human collagen and gelatin.

~ 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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