CEFC, Cannon-Brookes in agritech fund

A local farmer, the Clean Energy Finance Corporation and the founder of an Australian technology unicorn have chipped in $16 million to a new venture capital fund focussed on agrifood tech.

The fund will be managed by Sydney-based Tenacious Ventures, with a target to raise up to $30 million for early stage startups in the agricultural supply chain.

Sarah Nolet, Matthew Pryor and Cass Mao are partners in the firm.

Brad Jones, a grains farmer from Tammin, is one of a number of farmers nationally who have supported the fund.

Mr Jones was previously director of Australian Grains Champion, which made a takeover bid for CBH Group in 2016.

The size of Mr Jones’ investment was undisclosed, but Business News understands it is modest.

The federal government’s Clean Energy Finance Corporation invested $8 million, while Atlassian founder Mike Cannon-Brookes’ Grok Ventures is chipping in a similar amount.

Chief executive Ian Learmonth said the fund would help address a shortage of institutional capital for agrifood tech businesses.

He said per capita investment in Australian agrifood tech is only a fraction of the level in New Zealand, Israel and the US.

“The agricultural sector poses a demanding climate change challenge: how to produce more food, more efficiently, for a growing population amid a more extreme climate, while also reducing greenhouse gas intensity and emissions,” Mr Learmonth said.

“As a major food exporter Australia has an opportunity to be at the forefront of innovative technology solutions than can address these challenges.

“With this investment the CEFC is supporting an exciting Australian industry of the future with the potential to make a meaningful contribution to lowering global emissions while supporting our agriculture sector.”

Mr Cannon-Brookes said innovation in agriculture was desperately needed to improve sustainability.

“Kick-starting this industry in Australia will take guts and expertise, and the CEFC brings both,” he said.

“There's no doubt that new ideas in agriculture will play a massive role in reducing carbon emissions, while also delivering return on investment. 

“The economic upside for Australia’s economy is also huge.”