Together, We Can Create a Booming AgTech Ecosystem
By Hank Giclas and Stephanie Metzinger F armers across the world face the daunting challenge of producing 70 percent more food by 2050 to feed an ever- growing population. Achieving this dramatic increase in global food production will require a proactive approach to modernizing our food system. Growers are “taking the bull by the horns” and implementing innovative practices on their farms to help them increase yield while facing more restrictive access to natural resources. However, they are not alone in their quest to save our food system and feed the world. Across the food supply chain, there are a host of industry partners who are coming together and collaborating on solutions. These players are the academics who are researching how to get ahead of critical issues such as food safety outbreaks. They are trade associations that are advocating for necessary resources that allow farmers to continue to grow food, and the government agencies that are implementing initiatives to sustain a viable food supply. They are the entrepreneurs who are developing technologies to optimize growing practices and the investors who are providing capital that enable emerging businesses to build infrastructure and scale new ideas. Together, as partners, they are moving the needle to ensure a safe and sufficient supply of food for decades to come. In 2017, Western Growers (WG) partnered with S2G Ventures (Seed 2 Growth) to launch a groundbreaking initiative to identify key innovations in the fresh produce industry, called the AgSharks ® Competition. AgSharks is a live event, hosted at the WG Annual Meeting, where start-up companies compete for equity investments totaling up to $250,000 to support the development and growth of their businesses, as well as for farm acreage to pilot their technologies. These startups pitch their ideas to a panel of AgSharks—which is comprised of venture capitalists and growers—who will decide on the spot whether and how much to invest. The entrepreneurs must then accept the offer, negotiate or decline. “We strongly believe that in order for entrepreneurship to be successful and innovation to take hold, you need to have the right stakeholders around table,” said Audre Kapacinskas, vice president at S2G Ventures, a multi-stage food and agriculture venture fund. She refers to interested parties such as entrepreneurs, venture capitalists and end users like WG members. Kapacinskas also expresses how domain experts, like WG Senior Vice President, Strategic Planning, Science & Technology Hank Giclas, are key
players as they have a deep understanding of current trends and challenges and are knowledgeable on what priorities matter to all audiences involved. “Combining the capabilities of an association like Western Growers with all the resources that a corporate partner such as S2G Ventures can offer results in a unique innovation model of one plus one equals three” said Kapacinskas. “Working together, we have taken a holistic approach to the advancement of our food systems and expedited the time it takes to develop and deploy emerging technologies that can have an extraordinary impact on the evolution of the industry.” Though AgSharks is only going into its third year, the initiative has already produced tangible results. The three winners of the competition have used their winnings to elevate their businesses to the next level. Here is a look at where they are now: HAZEL TECHNOLOGIES Technology Offered: Hazel Technologies’ products are inserts that time-release active ingredients into the storage atmosphere of commercially-packed produce. The active ingredients biochemically fight spoilage by slowing the aging process and fight the proliferation of diseases. AgSharks Winnings: $2 million in equity investment during the 2017 AgSharks Competition.
WG's Hank Giclas (left) collaborates with S2G Ventures' Matthew Walker (right) during 2018WG Annual Meeting.
32 Western Grower & Shipper | www.wga.com NOVEMBER | DECEMBER 2019
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