August 22, 2024

By Gerelyn Terzo, Global AgInvesting Media

Root Global, a Berlin-based software platform helping companies across the food system get to net zero, has raised €8 million (US$7.1 million) in a seed round. Led by seed-stage VC Point Nine, the fundraising also extended to Project A, HelloWorld and Zurich-based Arc Investors as well as a number of startup operators. Previous pre-seed backers have included P9 Capital alum Robin Dechant and Cargo.one Founder Mike Rötgers as well as Project A.

Founded in 2023, Root Global specializes in helping companies along the food supply chain to become more climate friendly by slashing their carbon footprints through better data. Its roster of clients includes Europe’s biggest dairy plant and a major fast-food chain. Root helps over 10,000 farmers manage and slash millions of tons of greenhouse gas emissions from the root, which according to the company is often “deep in their supply chain.”

Point Nine Managing Partner Christoph Janz shared how the VC has met a number of accounting carbon startups, but his concern is always about the potential for greenwashing. This is due to the fact that much of the data is based on rough estimates coupled with the uncertainty around many carbon offsets projects. With roughly 25 percent to 30 percent of the world’s greenhouse gas emissions originating from food systems, more than three-quarters of which can be traced back to the farmer and processor level, Janz believes “farm-level data is absolutely crucial to unlock reductions.”

However, gathering primary supplier data is a cumbersome process, as large brands may source their ag products from hundreds of thousands of growers around the world. Processed products, in turn, may be sourced from thousands of food processors who might work with hundreds more farmers. Root’s software platform streamlines the process of collecting verifiable data at scale. The company’s platform is relevant up and down the food and agriculture value chain, including farmers, processors, retailers, etc., with the lofty goal of helping them to achieve net zero.

With the proceeds, Root is targeting growth that includes the expansion of its team. As an early-stage startup, Root faced the challenge of “building an entire department from scratch with little pre-experience,” according to co-founder Maurice Hensl. To clear this hurdle, management pivoted their approach to instead create mini advisory boards for each role in their initial core team. They are building these boards through angel investors commensurate with specific skillsets that will be needed over the short term. Through these boards, the Root team members can glean knowledge and advice that will reduce the founders’ operational load while improving their performance.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.