Cooperative Ventures, a venture capital fund co-founded last year by Twin Cities agribusiness giant CHS Inc., has made its first investment, in a company developing tech to automate tractors and other farm equipment.
The fund on Friday announced its investment stake in Sabanto, a Chicago-based company that retrofits 60- to 200-horsepower tractors to operate autonomously and handle crop field operations such as planting, tillage, spraying, and mowing. Terms of the deal weren't disclosed.
Inver Grove Heights-based CHS and Bloomington, Illinois-based Growmark founded the $50 million Cooperative Ventures fund last year with an intent to focus on early-stage companies that impact crop production, supply chain efficiency and technologies for sustainability in the agriculture industry.
"The labor shortage in ag retail is a very real problem," said Growmark Director of Innovation Heather Thompson in a statement, adding that while automation offers a solution, it comes with its own challenges. The Sabanto deal will help Cooperative Ventures learn more about the tech's potential.
"While many autonomous equipment startups are focused on specialty crops, we believe Sabanto's focus on row crops presents a tremendous opportunity for farmers and our member owners," said CHS Director of Innovation and Sustainability Ben Van Straten in a statement.
This past summer, Sabanto raised $17 million in a Series A round with investments from Fulcrum Global Capital, DCVC Bio, Hico Capital, Yara Growth Ventures, Cavallo Ventures, Trimble Ventures and Johnsonville Ventures, the parent company of Johnsonville LLC — the 77-year-old sausage maker out of Wisconsin. Chicago Into has more details on that deal.
