Hort Innovation and VC Artesian will plough $60 million into startups with a new agtech fund

Not-for-profit research and development company Hort Innovation is teaming up with venture capital firm Artesian for a new $60 million VC fund to back early-stage startups tackling challenges for fruit, vegetable and nut farmers.

Hort will chip in around $24 million to the Hort Innovation Venture Fund, leveraged by co-investments sourced by Artesian, for a total investment of more than $60 million.

The cheque size will range from around $250,000 to $3 million. Robotics and artificial intelligence are key areas of interest for potential investment.

Hort Innovation CEO Brett Fifield said horticulture is Australia’s third largest agriculture sector and the fastest growing with a 44% increase in value over the past five years.  The aim of the fund is to back ideas that improve productivity and support Australian-grown fruits and vegetables is areas such as sustainability, affordability and resilience. 

“Australian horticulture is world-class and therefore demands the best innovation,” he said. 

“We are creating this world-first horticulture-specific venture capital fund to attract local and international  startups who are focused on prosperity and sustainability. By investing in startups, we are enabling fresh ideas, never-before-seen technologies, and new ways of  thinking to make growing easier, more sustainable and cost-effective, and lift consumption.”

The fund’s key focus areas include: 

• Increasing productivity: Helping Australian growers to become more adaptable, resilient and financially sustainable. This may be in the use of AI to predict what to do and when to do it, new automation options, or the use of satellite technology to guide decision-making. 
• Sustainability: Delivering new innovations to align Australian growers of fruit, vegetables, nuts, turf and nursery plants with world-leading environmental sustainability. For example, enhancing monitoring capabilities to optimise water use, track and reduce carbon and expand chemical use  alternatives. 
• Consumption: Supporting healthy living by meeting changing consumer preferences. For example, naturally breeding produce that is nutrient dense, with a long shelf life while being aesthetically pleasing. 

Artesian CEO Jeremy Colless said it will be the world’s first horticulture-specific VC fund.

“The approach the Hort Innovation Venture Fund is taking is proven, and well-suited to address the needs of Australia’s horticulture production industry,” he said.