Conexus Venture Capital Inc. (CVC) announced the launch of a second venture capital fund, Emmertech, focused on Canadian agtech and agribusiness innovation. Emmertech reached an initial close of $45 million CAD, and expects to cross $60 million by the final close at the end of the year. Emmertech is a new fund that’s built from an industry-first approach, with investors being some of Canada’s most innovative farmers, agribusiness owners, and agriculturally centered financial institutions. The Fund includes a $15 million investment from Innovation Saskatchewan, of which will be invested specifically in Saskatchewan-based agtech companies.
Canada is a country of innovators, yet the majority of our agricultural products are shipped as raw materials, and almost 70% of the machinery on Canadian farms comes from other countries. One of the biggest challenges in Canadian agtech is the lack of private capital that flows into the space, with Canada’s share of global agtech investments being only 3.4%. Additionally, only 11% of Canadian agriculture research and development comes from privately funded sources.
The team at Emmertech is confident that Canada can utilize its status as a country of innovators, combined with the seventh most arable land in the world, to catalyze the agtech ecosystem. Over the next 10 years, Emmertech will invest in a diversified portfolio of Canadian-based agtech companies, including those accepted into the recently announced Agtech Accelerator.
Source : Conexus