January 9, 2015

By Shahnaz Mahmud

It’s well-documented that by 2050 more food will need to be produced than ever before in human history. The Food and Agriculture Organization of the

United Nations has stated that the world population will exceed nine billion and in order to feed it, food production must increase 70%.

The Yield Lab aims to address this food supply challenge head on. The Lab is a business accelerator that will give four to eight early stage agriculture technology companies $100,000 in capital investment per year while also mentoring them to help bring them to market with greater chance of success. These start-ups are selected on the basis of their innovation in products or services that support sustainable methods to feed the world population and boost its food supply.

To Spur Innovation, Flexibility is Needed

The Yield Lab formalized last September. Its founders wanted to create a platform where innovation can be nurtured properly. Corporations typically grapple with issues such as budget constraints and red tape, “neither of which are very flexible,” says Thad Simons, Managing Director of the Yield Lab and former President and CEO of animal health and nutrition company Novus International. “To spur innovation, flexibility is needed.”

The accelerator is committed to investing in biofuels, precision agriculture equipment and microbial fertilizers, and is also eyeing big data platforms, notes Simons. The Yield Lab received 115 applications, many of whom demonstrated great potential with their products and services. Deciding which companies to invest in has been, therefore, a great challenge, he says. LifePack is one start up that the Yield Lab has stated publicly it will allow into its program (which begins this January). The Cali, Colombia-based company manufactures plates and other items made of natural plant fibers and seeds that germinate in a backyard garden or landfill when exposed to light, air and water. It’s a good example of a company that contributes to efforts to increase the world’s food supply.

Simons provides his thoughts on the bigger picture of increased investment in the agriculture space. “If you look at the top multi-national ag companies, combined they are putting $1 billion a month into AgTech research,” he says. “The rising population will drive the demand and create a market opportunity. Planting on more acres won’t solve this, land and resources are precious and will need to be conserved while producing more. Technology to increase yields in crop and livestock in a sustainable way are the only responsible avenues to meet this demand.”

The launch of the accelerator translates into good news for growers as sophisticated technologies infiltrate the mainstream and are becoming more economically accessible. “Agriculture technology is moving in the direction of low purchase price and cost savings,” says Simons. “Technology that can more efficiently harvest a field, products that can save on irrigation, improve operational efficiency or products that can compete against what is currently being produced are moving in the direction of integration with existing infrastructure to reduce cost and resources.”

Reaching International Heights

The Yield Lab is based out of St. Louis, Mo., but Simons emphasizes that its efforts have already reached international heights. The accelerator received applications from 96 cities in 15 countries and five continents. The top 20 applications it reviewed included representation from the United States, Canada, Netherlands, Argentina and Israel.  “We are very happy to continue the trend of attracting global talent to the St. Louis region,” Simons says. Its selected portfolio companies will be announced – and introduced to the world – early in 2015.

Looking ahead, Simons says the Yield Lab plans to provide world-class programming in 2015. “That is, we will put in tremendous time and energy into our portfolio companies to accelerate them to the next level,” he explains. “This will include pitch training, improving networking skills, business fundamentals training, navigating the St. Louis agriculture scene and much more.” Towards the close of 2015, The Yield Lab will re-open applications in preparation for its next class beginning in 2016.

Simons parts with some thoughts on the greater agricultural landscape. “We believe the Yield Lab will invest in and mentor companies that will innovate and create products that will have a substantial impact on the world food supply,” he says. But, he also offers some advice as he refers to the interconnectedness of all things through the business lens. “We also would encourage start up companies in non-agriculture related fields to consider an agriculture application of their product,” says Simons. “There is a lot that goes into producing a meal and the agriculture production chain may be [a good] fit for your product’s business.”