February 21, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Positioned at the nexus of agtech and fintech, U.S.-based tech startup GrainChain has closed on $29 million in funding to digitize the world’s grain supply chains. 

After years of volatility in global commodity markets, the promise that a digital ag platform can provide farmers with higher returns per acre and improve margins for handlers is highly attractive.

Launched in 2018, GrainChain has developed a suite of complementary products that level the playing field for all participants by combining blockchain and IoT-driven technology, resulting in fully digitized workflows providing greater efficiency, transparency, traceability, reliability, and liquidity from pre-to-post harvest.  

As an end-to-end, harvest-to-table system comprising software products that eliminate the manual processes of weighing and documenting agricultural output through the use of Internet of Things (IoT) devices that accurately measure weight and quality. The company’s mobile apps give farmers the ability to see their inventory in real time, provides measurements such as quantity, quality, and humidity, and enables them to enact immediate contract settlement.

Additionally, the blockchain-based platform’s financial settlement system allows farmers, buyers, and sellers to create smart contracts through which to secure funds through transaction processes, eliminating both the potential for human-caused error, and the potential for fraud through the actions of bad participants.

This approach resulted in GrainWave having a standout year in 2022 across multiple commodity streams. 

“Twenty-twenty-two was a breakout year for GrainChain in many ways,” said Luis Macia, CEO and co-founder, GrainChain, explained, “We saw explosive growth as our transaction platform, Trumodity, became fully integrated with banking systems in Latin America and when we launched liquidity programs with coffee producers in Mexico and Central America.”

This growth prompted investors to double-down on their commitment to the company. Included in this funding round was a $10 million follow-on commitment from online furniture and home products merchandiser Overstock.com (as a portfolio company of Medici Ventures, Overstock.com is the sole limited partner of Medici). 

“GrainChain has seen impressive growth as Pelion has become more involved,” said Jonathan Johnson, CEO, Overstock. “With its differentiated technology, we expect GrainChain to become a market leader in the agtech space. This new up-round of investment will support the company’s efforts to further grow.”

“Our follow-on investment of $10 million will enable Overstock and its shareholders to participate in the long-term success of GrainChain. I am pleased that the Pelion team continues to demonstrate its expertise in advancing the Medici Ventures portfolio companies.”

The round also included a $10 million investment from Pelion General Partners’ main fund, and also saw Pelion partner Jeff Kearl to GrainChains’ Board of Directors.

“Jeff was an early investor in companies like Uber and Coupa, and his experience with other hypergrowth companies will be invaluable in helping guide GrainChain,” said Matt Mosmas, general partner, Pelion, and board member, GrainChain. 

Brigham Young University also participated through its BYU Cougar Capital program, a venture capital and private equity fund managed by second-year MBA students at the university’s Marriott School of Business. 

To-date, GrainChain’s system has processed over 22.5 billion pounds of more than 24 different types of commodities, in four countries, and involving over 18,000 participants. 

The capital raised from these backers will be used by the company to accelerate its growth in the U.S. and in Latin America, where the startup has been supporting operations for MasterBarter in Brazil since 2020 – one of four regions where the company currently has a presence, including the U.S., Mexico, and Central America. 

“We thank the Overstock and Pelion teams for the additional capital to support our continued growth and for supporting our efforts from the very beginning,” said Macias.

“Pelion has been an invaluable partner, providing strategic guidance and connecting us with the proper resources to allow us to focus on our clients, core business, and growth.”

~ 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.

*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.