2 tech businesses helping Australian farmers stay best in class

Note: This interview was taped on Monday 29 April 2024.

Fund Profile

• Name of the fund: Cultiv8 Agriculture and Food Technology Fund
• Asset Class: Early-stage, venture capital-backed agricultural and food technology firms
• Year started: September 2022
• Description of strategy: The Fund invests exclusively in Agriculture and Food Technology companies from the Seed stage to Series B and investments in the Limited Partnership will qualify for concessional tax treatment under an ESVCLP (Early-Stage Venture Capital Limited Partnership).
• Target Return: Target 20% IRR net of fees*

How the world's most essential industry is adapting to change

While there may be some dispute as to whether it is the world's oldest industry, it can certainly claim to be one of the most essential. Here in Australia, agriculture is not just the backbone of the economy—it's also a huge part of our export and security universes. One trip to your local supermarket will demonstrate just how much outstanding produce, poultry, and non-perishable products we create in this country.

But it may surprise you to learn that agriculture is not just a core part of the economy - it's also where a lot of innovation occurs. 

It is at this intersection that Jonathon Quigley sits, as both a founding partner of Cultiv8 Funds Management and a member of the investment committee for the Cultiv8 Agriculture and Food Technology Fund.

"Our background is in agriculture. 

We live regionally, operate agricultural businesses ourselves, and our experience sits within that broader sector, enabling us to have unique insights into the way opportunities exist, the challenges which are created and the solutions that come from that," Quigley tells me.

Australian and global firms are innovating

As Quigley illuminates, companies are creating solutions for everything from increasing connectivity to reducing pesticide usage, from robotics and AI to securing our national food supply - and everything in between. While Australian industries used to be a net importer of these technologies, homegrown talent is now rapidly catching up.

"We are seen very much as leaders in many respects," Quigley says. "Our agricultural sector is first-class."

"Leading into the development of new technology, traditionally we have been laggards and adopted technology from overseas. That said, we are catching up quickly and there has been an increased focus that has led to us seeing genuine opportunities at scale," he adds.

The Cultiv8 Agriculture and Food Technology Fund invests in these businesses at the early stage of their funding needs. The fund is aiming to work towards an eventual goal of around 20 total investments and a total size of $100 million. 

"It's an exciting time, it's quite a complex time, but at the same time, it's not going away," Quigley says.

What are they looking for?

The answer to this is three-fold: 

• People - Who is leading the innovation?
• The need - What is the product and have they got the IP to solve the problem?
• Uniqueness - How unique is the approach and does the company have an earnings moat?

In this interview, as part of Livewire's Undiscovered Series, we'll introduce you to Quigley's background, his investment process, and two current investments that he hopes will turn innovation and IP into a fund that eventually returns 20% IRR. We also get Quigley's view on what he thinks the future will look like for global agriculture and the role technology will play within it.

*Target returns are not a reliable indicator of future performance, and no guarantee or assurance is given that such that performance objectives will be achieved.

Driving innovation in global agriculture and food

Cultiv8 is committed to developing a range of investment funds focused on innovation in Agri-Food Tech, whilst leveraging Australia’s world-class industries, research and expanding technologies. Cultiv8 is currently accepting wholesale investor commitments for the Cultiv8 Agriculture and Food Technology Fund. Visit their website for further information. 

Managed Fund

Cultiv8 Agriculture and Food Technology Fund

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