DuPont and Bayer AG have teamed up to invest in a new fund that will back agricultural technology startups, becoming the latest companies to pile into the multibillion-dollar industry as farm profits shrink.
The two chemical and seed companies along with venture capital firm Finistere Ventures and two others have launched a $15 million accelerator fund, called Radicle, that will back early-stage agricultural-tech companies, the fund said.
Of the $15 million, $6 million has been initially committed but the fund did not identify which companies would receive the monies.
While small in size, it marks the first time DuPont's investment arm has taken a stake in the ag-tech arena since launching in 2003, according to fund officials.
DuPont and Bayer did not respond to calls for comment.
The companies are joining a burgeoning industry of ag-tech investors hoping to profit from ever more sophisticated tools in the food supply chain, from plant genomics and seed traits, to drones and weather sensors for crops.
For seed and chemical companies, such ventures can bring access to new research that may complement - or fill gaps - in their product pipelines.
Source: www.agprofessional.com