Capagro: €200 million to support AgTech and FoodTech startups

Like the predecessor fund, the new fund covers the entire value chain of the agri-food sector, from field to plate, in an ecosystem approach between planet, humans and animals. The main sectors targeted by Capagro II are bio-inputs, robotics, special ingredients, innovative packaging, alternative proteins, personalized nutrition, new distribution methods, as well as new sectors of the future, such as carbon agriculture.”

Building on the success of its first fund, Capagro announces the launch of a €200 million successor fund to support the growth of the most promising startups on the European AgTech and FoodTech scene. The launch of this new fund is accompanied by a first investment with Cuure, a European player in personalized health in the growing market for dietary supplements.

Five years after the closing of the first European private equity fund dedicated to AgTech and FoodTech, Capagro announces the launch of a successor fund, the Capagro Agri-Food Innovation Fund II (Capagro II). Its objective: to support the growth of the most promising start-ups in the European AgTech and FoodTech landscape, towards more sustainable agriculture and healthy eating, with an initial investment in the start-up Cuure, a European player in personalized nutrition in the growing supplement market food.

This new €200 million fund already brings together the following fund underwriters around Capagro’s sector experts: Groupe Avril, LSDH, Terrena, Groupe Bel, Groupe Crédit Agricole (IDIA), as well as Bpifrance. It also hosts the Euralis agricultural cooperative group and opens its doors to other institutional, industrial and family offices as part of the ongoing fundraising.

Bioinputs, robotics, ingredients, packaging, proteins, distribution…

Capagro II targets high growth potential start-ups with innovative projects for sustainable agriculture and healthy eating in the Agri-Food Tech field. The fund will act mainly as a lead or co-lead through initial amounts between 3 and 10 million euros in the capital of around fifteen mainly European companies.

Like the predecessor fund, the new fund covers the entire value chain of the agri-food sector, from field to plate, in an ecosystem approach between planet, humans and animals. The main sectors targeted by Capagro II are bio-inputs, robotics, special ingredients, innovative packaging, alternative proteins, personalized nutrition, new distribution methods, as well as new sectors of the future, such as carbon agriculture.”

For Tom Espiard-Cignaco, President and Managing Director of Capagro: “The current context reminds us of the urgency of climate, food, health, social and economic issues related to agriculture and food. Innovation in European Agri-Food Technology already provides concrete answers to these challenges, but it must also find financial support to match the potential it represents. Making capital available to these companies is not only a way of responding to these challenges, but also an opportunity to bring to the fore new European champions in Agri-Food Technology. By helping them scale and accelerate their growth, this new fund is for those young companies driving sustainable innovations capable of profoundly transforming agriculture and food.”

The launch of Capagro II is part of a dynamic context, marked by strong investment growth in 2021-2022. In 2021, around 52 billion US dollars were invested in global agri-food technology, 85% more than in 2020. In Europe, in the same period, 9.2 billion US dollars were invested in agri-food technology, that is, almost 20% of the world market. Global Agri-Food Tech has 55 unicorns, 25 of which are European.

Capagro I fund success

Launched in April 2014, predecessor fund Capagro I, a European pioneer in private equity dedicated to AgTech and FoodTech, highlighted the dynamism of agri-food innovation in France and Europe. Between 2014 and 2022, with an endowment of 124 million euros, Capagro I mobilized 13 large industrial groups and financial institutions, consisting of a portfolio of 13 French and European start-ups working in the areas of robotics and agricultural equipment (Naïo Technologies, Ecorobotix, BoMill), agricultural e-procurement (Agriconomie), bio-sourced materials (CelluComp), personalized nutrition (Yooji, Nick’s), alternative proteins (La Vie), e-trade (Japhy, La Belle Vie, Colvin), “ indoor agriculture” (CleanGreens) and food traceability (eProvenance).

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