May 24, 2021

By Lynda Kiernan, Global AgInvesting Media

There are multiple types of “good” fungi that establish relationships with plants that are mutually beneficial – these relationships are called mycorrhizae, and the microorganisms are called mycorrhizal fungi. However, over time these naturally occurring and beneficial microbes have been destroyed by modern farming practices including tiling, pasteurization, and over fertilization. 

Israel’s Groundwork BioAg manufactures mycorrhizal inoculants, which are made through a natural symbiosis between fungi (myco-) and plant roots (-rhiza). These mycorrhizae are a cornerstone of regenerative agriculture – used agriculturally to improve nutrient uptake in crops, increase yields, reduce fertilizer inputs, increase soil carbon sequestration, and reduce harmful soil-borne pathogens.

To accomplish this, these specialized fungi use mycelium, or long, microscopic filaments called hyphae, to extend a plant’s root system up to 100 times the plant’s original root itself – this allows for greater absorption of nutrients and water.

To advance this work, Groundwork BioAg announced it has raised $11 million in venture capital financing led by Ibex Investors, and including ProDelta and Future Foodways, previous investors MoreVC, Middleland Capital, Axess Ventures, and BPD Agri. 

With this capital, Groundwork BioAg intends to expand production of its mycorrhizal platform to better meet global demand for natural and sustainable agricultural solutions that increase productivity while also improving soil health.

“We are pleased to add Groundwork BioAg to our portfolio – not only because of its strong  in-field performance and continued growth trajectory, but also because its technology  provides the most compelling solution to increase yield while protecting our environment,”  said Gal Gitter, managing director, Ibex Investors.  “With its high efficacy and broad applicability, Groundwork BioAg can feasibly treat over one  billion hectares, nearly all of the world’s farmland, with these beneficial fungi.”

Following years of research and product development, Groundwork BioAg is the first company to unlock the ability to mass produce high concentrated, cost-effective mycorrhizal inoculants, with its flagship products being Rootella® for commodity, organic and specialty crops, and DYNOMYCO® for cannabis.

Through distribution agreements for these products in strategic markets across five continents, Groundwork BioAg is helping farmers improve the efficiency of crop production for crops including corn, soybeans, grains, bioenergy crops, fruits, vegetables, and cannabis.

On the heels of record sales in both 2019 and 2020, the company is serving 1 million acres in 2021 and is rapidly scaling up to meet even greater demand expected in 2022. 

“Over the past few years, we have focused on building production capacity to support  millions of hectares and solidify our global presence in the main agricultural markets,” said Dr. Yossi Kofman, co-founder and CEO, Groundwork BioAg.

This funding – headed by Ibex Investors, a multi-strategy investment firm with offices in Denver, Colorado, Tel Aviv, Israel, and New York – represents the strong growth position Groundwork BioAg is currently in, and will enable the company to expand its tech platform and accelerate its production capacity to match pace with global demand for regenerative ag products. 

“With  this investment and strong sales, we will be able to fulfill our mission to bring mycorrhiza – the queen of biologicals – to mainstream agriculture and help farmers succeed while  protecting our planet,” continued Kofman. “We look forward to working with our investors, strategic partners and distributors to  continue bringing meaningful value to farmers around the world.”

– Lynda Kiernan is editor 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 Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.