CB insights cultivating ag tech briefing

Cultivating ag tech Examining how the agriculture industry is being reshaped by technology The technology market intelligence platform CB Insights software lets you predict, discuss, and communicate emerging technology trends using data in ways that are beyond human cognition Join the conversation on Twitter @cbinsights #agtech A few of our happy customers The most publicly reference-able customers of anyone in the industry “We use CB Insights to find emerging trends and interesting companies that might signal a shift in technology or require us to reallocate resources.” Beti Cung, Corporate Strategy, Microsoft See what other customers have to say at http://www.cbinsights.com/customer-love December 12 – 13, 2017 | San Francisco, CA A-ha! is a gathering of Fortune 1000 executives, investors, academics, and startup founders discussing the next wave of ideas and technologies that will shape our world SPEAKERS INCLUDE Daymond John Liza Landsman Mudassir Sheikha Benedict Evans The Shark Group Jet.com Careem Andreessen Horowitz Star of ABC’s Shark Tank and CEO President Co-founder & CEO Partner Sold to Walmart for $3.3B MENA’s $1.2B Unicorn “Working Out What’s Happening Next” at a16z FUBU Founder/CEO About the lead analyst Nikhil Krishnan Research Analyst, CB Insights Focuses on Healthcare, Agriculture, Construction, and VC Trends Published research and data analysis have been featured in The New York Times, Wall Street Journal, Financial Times, Bloomberg, and CNBC, among other major media outlets Graduate of Columbia University @nikillinit nkrishnan@cbinsights.com Table of contents What is ag tech? 10 Macro trends 20 Private market activity 35 Role of corporates 50 Monsanto case study 48 Business models, approaches, and trends 67 The next frontier of agriculture What are we analyzing in Ag tech? We’ll be analyzing hardware/software companies that are changing the way produce is grown and distributed Private market funding data will be focused on companies that use technology as a key differentiating point where agriculture is the primary use case While we will briefly talk about how genomics and genetic engineering are changing seed design, this presentation will not be talking about agricultural biotechnology or farming products (e.g pesticides) Ag tech: Macro trends 10 Companies are coming for Monsanto via genetic engineering Description: Indigo uses genetic sequencing to analyze crop microbiomes, then designs beneficial microbial formulas that improve crop health and increase yields Its first product, Indigo Cotton, increased yield 11% without increasing water usage Disclosed Funding: $319.5M Select Investors: Flagship Pioneering, Alaska Permanent Fund 72 Gene edited food is coming DuPont aiming to engage consumers on genetically edited crops October 24th, 2017 73 Rewriting the supply chain allows for increased produce variety Description: Apeel turns agricultural byproducts into invisible (and organic) coatings for fresh produce, to protect produce before and after harvest This can reduce waste in farms and grocery stores, limit pesticide use, and extend produce shelf life Effects: Produce that could not previously survive long supply chains now can “Local” produce from around the world becomes more accessible 74 Apeel patent pictures show benefits Photos from a recent Apeel patent application show the difference between fruits coated with Apeel’s formula and uncoated fruits; the uncoated fruits tend to shrink, shrivel, and grow moldy Patent: Plant extract compositions and methods of preparation thereof 75 Alternative proteins Will food preferences change entirely, increasing the need for specialty farms? Insect protein as an alternative is one area that has been getting a lot of attention in the media as a more sustainable alternative to meat New plant alternatives for meat could change demand for livestock and certain replacement crops CB Insights Trends 76 Select meat & dairy replacement startups 2012 – 2017 YTD (6/18/2017) Investors aim to disrupt animal-based industries Since 2012, dozens of investors have backed startups designing plantbased beef substitutes, nut- and plant-based milk, insect protein snacks, and other products with potential to reduce consumption of animal products CB Insights 77 Pea protein replicates seafood Description: New Wave Foods is creating plant-based seafood, starting with a shrimp product made with pea protein and algal oil It plans to launch its products in early 2018 Disclosed Funding: $200K Select Investors: Efficient Capital, New Crop Capital, Indie.Bio 78 Can bars make crickets palatable? Description: Exo makes protein bars using crickets Crickets produce 100x less greenhouse gas than cows, and have a higher proportion of protein than beef or chicken Since crickets require less feed than livestock animals, production is also more efficient Disclosed Funding: $5.3M Select Investors: AccelFoods, Dentsu Ventures, Collaborative Fund 79 Big CPG companies are looking at new proteins “Bug-related stuff is big… the hottest thing is eating crickets.” Indra Nooyi CEO, PepsiCo Sources: CNBC (quote) 80 Will lab grown food take off? $325,000 Cost of one cultured burger in 2013 vs $11 Cost of one cultured burger in 2015 (though not yet commercially scaled) Foods from the lab Lab foods could remove farm dependency Lab-grown foods are raising more funding to things like make meals-in-a-bottle and creating animal products These labs could produce food faster and at a greater scale without needing a farm at all 82 What are the skills of tomorrow’s farmer? As farms approach full automation, the skills needed to be a farmer could also shift, blending both knowledge of agronomy and technology Tomorrow’s farmer could also be a scientist in a lab if food production moves in that direction This is important given the number of people employed by the agriculture industry Agriculture.com 83 @nikillinit QUESTIONS? nkrishnan@cbinsights.com 84 Where is all this data from? The CB Insights platform has the details on all the deals included in this report CLICK HERE TO SIGN UP FOR FREE 85 CBINSIGHTS.COM @ cbinsights +1(212)292-3148