Agtech startup Agora Livestock has banked more than $1.1 million to fund commercialisation of its trading platform, after winning a major federal government acceleration grant.
Agtech startup Agora Livestock has banked more than $1.1 million to fund commercialisation of its trading platform, after winning a major federal government acceleration grant.
The $550,000 Accelerating Commercialisation grant under the AusIndustry Entrepreneurs’ Programme requires matching funding from the private sector, which Agora founder Rob Kelly said had been more than achieved last year, with $600,000 in commitments.
The grant provides recipients with advice and funding to get a novel product, process or service to market. Agora was one of four recipients in Western Australia that will receive a combined $2.6 million. The grants are not limited to technology development and also allow for spending on sales and marketing to help push the product out to market.
Mr Kelly said part of Agora's funding would be used to hire staff to help potential customers understand and use the platform.
He said the company was about a month away from launching the second stage of its platform, which would allow farmers or agents to list their livestock for sale. Currently, Agora only allows buyers to list their needs, then producers or their representatives use that as a lead for sales opportunities.
The funds will bring to more than $4 million raised by the business since it launched in 2018 with $1.7 million invested from a range of private interest, predominantly from the agricultural sector the business is targeting.
Mr Kelly said the grant process was exhaustive, including considerable market testing by the government’s consultants to determine a need for the product and the willingness of the private sector to back it.
“From our end, it is exciting to have federal support,” he said.
Agora already claims thousands of users and believes the livestock sector has missed out on the benefits of sophisticated digital trading platforms which has become a common tool for the grain trading over the past decade.
Mr Kelly was involved in the development of online grain marketing and trading platform DailyGrain when he was working for rural commodities trader Plum Grove. That platform is now owned by giant grain cooperative CBH Group.
Agora has BDO corporate finance partner Peter Toll and former Harvest Road CEO Greg Harvey as directors. Other backers include investor relations expert John Gardner, the founders of IT consultancy Hatchd and a host of rural agents.
