June 4, 2019

by Lynda Kiernan

Yield Lab Europe has announced the launch of Yield Lab Europe Fund 1 LP, a new €21 million (US$23.6 million) European hybrid investment vehicle.

The Galway-based fund’s first close included a cornerstone investment of €10 million (US$11.3 million) from early-stage investor Enterprise Ireland,  along with a commitment of €4 million (US$4.5 million) from AIB, and three leading private family offices.

“Venture capital is essential for the growth and development of successful high potential Irish businesses and I am delighted to announce the creation of the European AgTech Fund by Yield Lab, to be based in Ireland,” said Minister for Business, Enterprise and Innovation, Heather Humphreys TD, when announcing the investment by Enterprise Ireland.

St. Louis-based Yield Lab expanded into Europe in 2016 with the announcement that it was establishing a new location in Galway, Ireland.

“We chose Galway because it is similar to St. Louis in proximity to vast agricultural production and innovation, especially in livestock,” said Matt Plummer, executive director of The Yield Lab at the time. “It also provides our current St. Louis investments with a beachhead to new markets and alternative sources of capital.”

Similar to what has been evolving in Silicon Valley, Ireland has seen venture capital increasingly flow into agtech. Known as the “Gateway to the Boyne Valley,” the Irish city of Drogheda is home to some of the most prominent agri-food companies in Europe and has been a ‘sister city’ to Salinas since 2012.

“This fund is very important, marking a significant increase in the availability of capital for companies in the agri-tech sector,” said Humphreys. “It advances our strategy, through Enterprise Ireland, of supporting the sustained growth and internationalization of this vibrant sector and will help drive the commercialization of new and innovative products from ambitious Irish companies.”

The venture capital fund will focus its capital on innovative early-stage agri-food tech companies that show the potential to achieve an international scale. It also will include an accelerator fund that will invest €100,000 (US$112,615) in five startups each year, as well as a larger follow-on fund that will lead rounds through Series A for selected companies.

“Never before has the need for innovative technologies, to improve the sustainability and efficiency of how food is produced, been so acutely needed,” said Paul Finnerty, chairman of Yield Lab Europe.

“Large corporates globally depend on the start-up ecosystem to provide next generation solutions to critical problems facing the agriculture and food industries. Agtech is the sharp end of agri-food industry innovation.”

“The launch of this new fund is a testament to our success to date and the potential of this sector. It gives us the financial firepower to be a leading player in early stage investment in European agtech.”

Yield Lab Europe has operated its AgTech Accelerator Program for the past two years, over which time it has invested in seven companies, including ApisProtect, an emerging company that presented at the AgTech Nexus 2017 Start-Up Hub in Dublin. This opportunity introduced ApisProtect to The Yield Lab, and Enterprise Ireland as well as Finistere Ventures,  Atlantic Bridge Capital, and  Radicle Growth.

Other companies in its portfolio include Meath-based insect farm Hexafly, which uses soldier flies to upcycle brewing waste into proteins, oils, and natural fertilizers; Carlow-based Microgen Biotech, an agtech startup that prevents the uptake of toxic heavy metals into plants and our food system; and Cork-based MicroSynbiotiX, an animal health startup working to develop a microalgae oral vaccine to reduce antibiotic usage and fight disease in aquaculture.

“Ireland’s reputation as a hub for innovation in the agri sector continues to grow and I would like to congratulate Yield lab on this new fund, supported by Enterprise Ireland which will assist in providing the global ag sector with leading innovative, effective, scalable products and services,” said Kevin Sherry, executive director of global business development, Enterprise Ireland.

“This fund will increase the availability of that essential early stage growth capital and address equity funding availability within the area of agri-food technologies, further driving Ireland’s reputation for quality and innovation in this important sector.”

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.