By Gerelyn Terzo

 

Village Capital, a non-profit organization, through its agriculture accelerator program on Jan. 28 awarded a combined US$100,000 to a pair of start-up companies. FIn Gourmet, which makes healthy ready-to-eat foods with Kentucky wild-caught Asian carp, and iUNU, developer of energy-efficient plasma lights for indoor farming, each received US$50,000.

Village Capital Investments, a Village Capital affiliated for-profit investment fund, and co-investor Louisville, Ky.-based Radicle Capital funded the program.

Village Capital used a peer-selection model in which the top 10 finalists, or cohorts, whittled down from 60 original applicants each cast a vote for their choice. The cohorts participated in three four-day sessions over several months involving mentorship and collaboration.

Candice Orm, Village Capital Senior Associate for Recruitment, explained the process. To qualify, the start-up companies must be in the early stages of capital raising, including pre-Series A for funding with no institutional capital, and they must expect to raise at least US$500,000 over the course of the next 12-18 months. The winners become part of the Village Capital Investments portfolio and issue quarterly reports.

“We don’t just hand them a check and walk away. We track capital raises. We advise them. We make connections for them. The purpose of our investment is to set them up for success,” said Orm.

It’s a business model that has worked for Village Capital, evidenced by the 42 Village Capital Investments portfolio companies having raised US $100 million in the past 18 months.

For the rest, 40% – 60% of companies not selected to be portfolio companies go on to receive some investment from a connection they made through the accelerator program, Orm said.

 

Problem Solvers

Both FIn Gourmet and iUNU possess solutions to advance the agriculture industry. “To be accepted, they had to have an innovation that solves real problems facing agriculture globally,” said Orm.

Fin Gourmet met that standard for its focus on sustainability. “Their Asian carp are sustainably caught, and there is no fish farming,” said Orm.

For iUNU, it’s about efficiency. “They created something that allows food like lettuce to grow and flourish in a nutritious manner with energy efficiency,” she added.

The Village Capital agriculture accelerator program, which remains in its infancy, will be offered again in 2015.