Local venture capital firm Innova Memphis has just closed its latest fund — and it’s poised to both increase investment in the agricultural industry and buoy the work of farmers.
Innova has announced the first close of Innova Ag Innovation Fund VI, after raising $40 million. Part of the USDA RBIC Capital Program — which looks to spur economic development and wealth opportunities in rural areas — it brings Innova’s total capital under management to more than $100 million.
And it builds on Innova’s first AgTech fund, which has 33 portfolio companies.
“We are excited to support the companies at the forefront of profitable agriculture. These transformative technologies and innovative practices are driving meaningful impact in the agricultural industry,” Innova partner Ken Moody said in a press release. “Nothing validates our strategy more than our existing investors returning for this new fund and doubling down.”
The new capital is set to be invested in early stage companies trying to create a profitable future in agriculture through automation, digitization, sustainability, and the boosting of operational efficiencies.
“This fund allows us to invest in pioneering companies that are not only elevating their operations but also contributing to a sustainable agricultural future,” said Innova partner Jan Bouten.
It could also help cement Innova’s status as a key player in the farmtech and agtech investment landscape. The new fund comes at a time when those areas are receiving rising amounts of attention, amid an increased focus on sustainability.
Innova isn’t the only local group interested in agtech, either.
Early this month, the University of Memphis held a conference with a coalition of partners, and agtech was one of the industries they focused on. AgLaunch connects agtech startups to its network of farmers, and it recently received a $250,000 award from the Wells Fargo Innovation Incubator.
And Agricenter International president John Butler has said in the past that he believes Memphis could become the agtech capital of the world.
