An agtech startup led by a former executive at Bayer Crop Science has closed a more than $3 million funding round.
Harpe Bioherbicide Solutions of Raleigh plans to use the capital to advance its research and development efforts and strengthen its intellectual property portfolio, which is "established on a series of plant-based herbicidal active compounds," the company said in a statement.
The round was led by Alexandria Venture Investments – which is the venture capital platform of California-based Alexandria Real Estate Equities (NYSE: ARE) – and iSelect Fund Management with additional investment from AgriTech Capital and angel investors.
The announcement of the raise follows the company closing on $1.1 million from four investors in August, according to a securities filing. That filing shows the company planned on raising a total of $3 million. The company also reported raising $770,000 in 2020.
In a statement, CEO Bill Buckner – an 18-year veteran of Bayer – said the agriculture industry needs more sustainable alternatives to address herbicide resistance. This is when weeds evolve to become more resistant to the materials farmers apply on them.
Farmers also need more natural options for non-farming reasons, Buckner said.
"The challenges faced by farming extend well beyond the field, as consumers are demanding more transparency into food production," Buckner said. "In addition, governing bodies continue to restrict the use of synthetic pesticides while increasing the pressure on farmers to produce high-quality food without negatively impacting soil, waterways and their neighboring environments."
In addition to the raise, the company announced it has added former U.S. Ambassador Kip E. Tom to its board of directors. Tom was U.S. ambassador to the United Nations Agencies for Food and Agriculture during the Trump administration. Additionally, Blake Stevens, vice president of science and technology at Alexandria Real Estate Equities, and Craig Herron, managing principal of iSelect, are joining the board as observers.
"The involvement of these new members is a testament to Harpe Bioherbicide Solutions team and its technology," Buckner said.
Harpe's raise follows another Triangle-based startup with a similar objective raising money last fall. 5Metis raised $10 million to further its development of new ways for farmers to protect their crops.
In 2018, researchers from North Carolina State University published a review paper in the journal Science that called on policymakers to put resources toward large-scale studies aimed at addressing herbicide and pesticide resistance. According to the paper, this resistance takes a tremendous financial toll on the U.S. agriculture industry – to the tune of $10 billion annually.
