FarmLead is updating the agriculture industry with its online marketplace for grain buyers and producers. And they just raised $6.5 million to expand their venture, including hiring at their US headquarters in Chicago.
FarmLead, which is based in Ottawa, Canada, announced they raised a $6.5 million Series A Monday. The round was led by Monsanto Growth Ventures (MGV), with additional investments from Avrio Ventures, the MaRS Innovation Accelerator Fund and Serra Ventures. FarmLead also announced Kiersten Stead of MGV and Aki Georgacacos of Avrio Ventures will join FarmLead's Board of Directors.
The startup created a digital marketplace that allows buyers and producers to list, negotiate and finalize grain deals. Previously this business was conducted offline, through paper and phone negotiations. With FarmLead, farmers have access to hundreds of buyers listed on one central platform, and buyers can find grain where they need it. Both parties have access to the platform 24 hours per day, with updates in real time.
"Despite the recent levels of technology innovation in agriculture, very few companies are aimed at the critical commerce piece of the equation that helps farmers realize profits from day one," said Kiersten Stead, investment director at MGV, in a statement. "FarmLead built a platform that can do just that and is a key part of a diversified approach to marketing and trading grain. We are delighted to support a great team and to partner with committed investors to enable an open marketplace that gives the industry more options and a differentiated advantage."
Since it launched in 2013, FarmLead has grown to serve 4,000 farms across North America. With this growth in mind, FarmLead is expanding its US headquarters in Chicago (the startup chose Chicago due to its proximity to major US grain production regions) and will use the funding to hire for regional customer success and business development representatives, as well as operational roles that will serve customers in key markets.
"This investment signals the appetite for a solution that accelerates the rates of commercial grain marketing transactions," added FarmLead CEO and cofounder Brennan Turner in a statement. "Our ability to increase deal flow for farmers, enabling them to negotiate better prices and other key trade terms online, allows farms to take ownership of their grain production and marketing lifecycle. This is the future of grain trading and we are truly poised to transform the way agricultural commodities are traded worldwide."
