March 8, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

By leveraging technology, Amsterdam-based Source.ag intends to democratize access to sufficient fruits and vegetables through AI-driven greenhouses, which the startup stated is a safer, more reliable, and climate-resilient method of production.

Although there exists huge potential (greenhouses can produce yields that are 15 times higher than traditional agriculture while using 20 times less water, and global demand for greenhouse agriculture is growing) adoption is being hindered by a persistent shortage of growers able to efficiently operate these facilities.

Now, the startup has announced its close on a $23 million Series A led by Astanor Ventures that included Acre Venture Partners, and several leading greenhouse operators in the Netherlands. 

Founded in November 2020 by CEO Rien Kamman and CTO Ernst van Bruggen, the startup’s proprietary algorithms simulate plant behavior to determine and execute optimal cultivation strategies by taking into account millions of data points on climate, biology, and resources. This pioneering tech platform makes greenhouse production more accessible, profitable, and globally scalable by enabling more growers to operate more facilities.

“Our technology provides growers with real-time, highly tailored advice on how to optimally grow their crops, and we support them in running a successful growing operation,” said Rien Kamman, CEO and co-founder, Source.ag. 

“We are proud to have Astanor Ventures, Acre Ventures Partners and leading Dutch growers’ continued support in our mission to empower the world’s growers. With this funding, we’ll introduce further groundbreaking products so even more growers can scale healthy food production and feed more people in a sustainable way.’’

In just two years, the startup has now raised $35 million, and in only the last 12 months, has increased its number of users by tenfold, partnering with the world’s leading growers to increase vegetable yields amid the challenges of climate change and a global energy crisis. 

European greenhouse vegetable producers also have certain advantages over intensive vertical farming startups, which can see initial investment requirements that are up to 10 times higher compared to the capital required for high-tech greenhouses, according to the paper, Vertical Farming in Europe, Present Status and Outlook, by Michele Butturini and L.F.M. Marcells, Wageningen University and Research, published in January 2019.

“Greenhouse vegetable producers often have established relationships with food distributors and are high-efficiency operators,” noted the authors. “Therefore, they may compete with vertical farms, instead of complement, for the same market, especially in regions or countries with a high concentration of greenhouses, like the Netherlands.”

By enabling more growers to operate more facilities through cutting-edge technology, Source.ag stated that it is making greenhouse agriculture more accessible, profitable, and scalable. This greater level of efficiency is more critical than ever, as 70 percent of global freshwater withdrawals are for food production, and 46 percent of the world’s habitable land is dedicated to agriculture. 

‘’We are extremely happy to continue our support of Source.ag,” said Arnout Dijkhuizen, investment principal, Astanor Ventures. “We have been genuinely impressed with the team’s mission and accomplishments since our Seed investment last year. Focusing truly on where tech meets nature, Source.ag has succeeded where many have said it was impossible: cracking standardization, data gathering and plant phenotyping with AI models that can simulate plant biology and help to optimize photosynthesis. More importantly, they are helping growers across the world operate their farms more efficiently, making greenhouse farming globally accessible and scalable, thereby democratizing access to fruit and vegetables.”

Currently, Source.ag is focusing on crops such as tomatoes and peppers – the largest segments of the global fresh vegetable industry – with an ultimate goal of eventually serving all fruit and vegetable growers.

After the successful launch of its first product, Source Track, the company has two more products – Source Cutivate and Source Control – in the pipeline for release this year that will enable growers to simulate full seasons of crop growth tailored to specific gene and crop varieties for optimal output. This funding will support the expansion of Source.ag’s platform, bringing its technology to bear on more crop types and farming methods. 

‘’Greenhouse agriculture is one of the key answers to climate-resilient production of fresh fruits and vegetables,” said Lucas Mann, co-founder and managing partner, Acre Venture Partners. 

“Source.ag has an incredible team and installed technology that has already proven to be a solution to help growers answer challenges in our global food supply. Deep and expanding partnerships with top growers around the world continues to demonstrate how impactful their technology is, and how quickly it will be adopted.”

~ 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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