Groundwork bioag raises $18 million to accelerate decarbonization of mainstream agriculture
23 August 2022, Israel: Groundwork BioAg, a leading producer of mycorrhizal inoculants with broad benefits for mainstream agriculture, has completed an $18 million Series B raise. The round was led by Climate Innovation Capital (ClimateIC) with participation from HSBC Asset Management (HSBC AM), BASF Venture Capital and Edaphon (a climate-focused fund), as well as individual investor John Abele, Co-Founder and former CEO of Boston Scientific. All previous investors, including MoreVC, Middleland Capital and Ibex Investors also participated in the round.
This new round, which follows rapid global market expansion after Groundwork BioAg’s $11 million raise in 2021, underscores the demand for biologicals that increase yield while providing carbon mitigation, sequestration, and regenerative solutions.
“Building upon our proven science and trusted network of distributors, Groundwork BioAg’s Mycorrhizal BioPlatform, which delivers ROI to both conventional and regenerative farmers while permanently sequestering carbon in their fields, is uniquely positioned to help farmers around the world manage mounting economic and environmental pressures,” said Dr. Yossi Kofman, Co-Founder and CEO of Groundwork BioAg.
The company has established commercial operations across the world’s major breadbaskets, including the United States, Brazil, China, India, Canada, Ukraine, and other countries in Europe, Asia and Africa, to improve the efficiency of major crop production, including corn, soybean, grains, fruits and vegetables.
“We search for commercial solutions that can deliver the greatest amount of decarbonization in the shortest period of time, and Groundwork BioAg fits that profile squarely,” said Nelson Switzer, Co-Founder and Managing Partner of ClimateIC. “Groundwork BioAg has the technology, team, expertise and network to help farmers leverage a cost-effective solution to reduce fertilizer use, increase crop yield and restore soil health while mitigating and sequestering an extraordinary measure of carbon.”
Based on naturally robust strains of mycorrhizal fungi that are symbiotic with 90% of plant species, Groundwork BioAg’s Mycorrhizal BioPlatform can easily integrate into local planting regimes and fertility programs.
“As demand for nature-based, climate solutions accelerates, investing in businesses with a strong potential climate impact is aligned with our sustainability goals,” said Idan Mor, Investment Director, Climate Technology Ventures at HSBC Asset Management.
“AgTech is one of our key global investment priorities. Groundwork BioAg’s founders have developed a highly effective product for widespread use in agriculture that can substantially reduce fertilizer dependency by making phosphorus available to the plant roots. Furthermore, it has the potential to convert and store CO2,” said Markus Solibieda, Managing Director of BASF Venture Capital GmbH.
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