Targeting double digit returns by backing just 6 companies a year. Here’s how he does it

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. Many of the investments within the fund will qualify for concessional tax treatment under an ESVCLP (Early-Stage Venture Capital Limited Partnership).
• Target Return: Target 20% IRR net of fees*

* 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

In this Fund in Focus, Quigley will share with us his thoughts on why investors should have exposure to global agriculture and Agri-Food Tech thematics. He'll explain why this may be the right way to play it for your portfolio and he'll also share one current investment that represents Cultiv8's process of narrowing down thousands of potential firms to the chosen few.

The asset class at the heart of Australia's economy

Unless you're passionately urban, chances are you have visited Australia's agricultural heartlands in your time. Perhaps you even know or have connections to a wine-growing region or a produce-rich area of this vast land. Australia is famous for its food - not just how much we produce of it but also the world-leading nature of the industry.

While stock market investors will be familiar with such names as Elders, GrainCorp, and the like, plenty of the companies that want to create change and spur innovation in this industry are both smaller and more nimble than the big names. 

"We invest in early stage technologies that help support agriculture and the value chain. The types of technologies we are investing in include genetics, data, automation and robotics, circularity, and climate adaptation," says Jonathon Quigley, Cultiv8 Co-Founder.

"Agriculture is a sector that isn't going away. It's a sector that has a lot of changes coming ahead. Organisations are getting a much better idea of what's in their value chain and governments are supporting this change with regulation as well. There's a distinct opportunity to help support the kind of change which is happening and our fund sits at the forefront of that change," Quigley adds.

Meet the fundie

As an experienced private investor, start-up director, and farm-dweller, Quigley is arguably the perfect person to navigate the ever-changing worlds of technological advancement and the Australian agriculture industry. 

Quigley now helps run the Cultiv8 Agriculture and Food Technology Fund, an investment vehicle dedicated to finding private companies that want to solve some of the key issues affecting farming life in Australia. In an ideal world, 50% of the fund will be made up of Australian firms and 50% will be global partners. 

The fund is looking to make up to 20 eventual investments. But they are not rushing to achieve this goal. As Quigley notes, the team may meet several hundred firms but very few make it to the investment stage.

"We very much have a rigorous due diligence process that enables us to go through specific opportunities as they come through," Quigley notes. 

"We invest in something like five to six companies a year."

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 our website for further information. 

Managed Fund

Cultiv8 Agriculture and Food Technology Fund

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