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Automation, robotics, smart irrigation, breeding and biotechnology are some of the areas of focus for a new Australian venture fund that plans to invest more than $60 million in high-growth local and international horticultural startups over the next five years.
Grower-owned research and development (R&D) body Hort Innovation is teaming up with Artesian Alternative Investments to create the Hort Innovation Venture Fund that aims to invest in 20-30 new startup businesses for pre-seed to early series A equity funding.
Hort Innovation will stump up a direct investment of $25 million into the fund, leveraged by co-investments sourced by Artesian.
The venture capital co-investment will specifically target startups involved in the fruit, vegetable, nut, turf and nursery farming industries.
Hort Innovation adds that new opportunities will be identified through trade missions and study tours, its own past and present R&D activities, referrals from growers and key industry partners, and Artesian's inbound and outbound enquiry, venture partner network, founder alumni and co-investor networks.
Hort Innovation chief executive officer Brett Fifield says the need to diversify investment approaches and adopt new thinking is critical to supporting the industry's sustainability objectives and meeting consumer demand, both in Australia and overseas.
"The Australian horticulture industry is facing unprecedented challenges - high production costs, labour issues, extreme weather impacts to name a few," Fifield explains.
"Our produce is also in huge demand due to its reputation for quality, with horticulture being Australia’s fastest growing agriculture sector, having experienced a 46 per cent increase in value over the past five years including a 4 per cent hike in exports.
"The Hort Innovation Venture Fund aims to get innovation in the hands of growers as quickly as possible, arming them with the tools they need to be as sustainable as possible while leveraging the opportunities that exist for them."
In addition to aligning with the UN’s Sustainable Development goals such as increasing productivity, sustainability and supporting healthy living by meeting changing consumer preferences locally and overseas, the VC will also prioritise opportunities to upskill existing industry participants and expand local career opportunities in horticulture, particularly in the science and technology arenas.
Artesian CEO Jeremy Colless says the firm is excited about the partnership with Hort Innovation, emphasising its potential to drive impactful investments in cutting-edge technologies that will deliver sustainable, long-term benefits for Australian produce farmers and consumers alike.
"Delivering the world’s first horticulture-specific venture capital fund with Hort Innovation is a significant milestone and an example of how Artesian works with leading industry, corporate, government and institutional investors to develop tailor made solutions that address innovation challenges," Colless says.
Colless highlights the collaboration as a unique opportunity to elevate productivity and innovation across the agriculture sector, fostering resilience and advancing Australia's position as a leader in sustainable horticulture.
Artesian currently has more than $1.2 billion in assets under management including through technology and venture capital investments across energy transformation, agrifood and natural capital, healthcare and emerging technology segments.
The Hort Innovation Venture Fund is the first new fund to be rolled out through Hort Innovation Frontiers. Launched in June, the dedicated co-investment program will invest up to $500 million over the next 10 years to seize big opportunities and develop solutions to horticulture’s major challenges.
One example of R&D programs Hort Innovation is involved with is a partnership with Singaporean tech company Polybee to trial the use of "microdrones" that pollinate plants using the wind from small inbuilt fans. This trial is in response to the fact that traditional pollinators like bees are more reluctant to pollinate in protected glasshouse environments, which are becoming increasingly important as an adaptation to climate change.
Another project, in response to the fact that poor eating experiences can turn a consumer off buying a particular fruit or vegetable again, is the development of new papaya, strawberries, mangoes, pineapples and passionfruit varieties that are based on consumer preference testing.
Each of these naturally-bred varieties will be tailored to smell, taste, feel and appear in a way that is desirable to purchasers.
These varieties could also be easier to grow for farmers, requiring less water and being more disease resistant.
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