Cultivation Capital, a St. Louis-based venture capital firm, is feeling optimistic about market conditions for agtech deals, writes Gerelyn Terzo at Global AgInvesting. According to a U.S. SEC filing, the firm has introduced the Cultivation Capital AgTech Fund IV for a total offering amount of $20 million, with a minimum allocation from outside investors of $250,000.
If demand proves robust, the VC firm has the option to increase the offering size to as much as $25 million, the filing states. Fund managers include Cultivation Capital Co-Founder and General Partner Kyle Welborn, as well as general partners Martha Schlicher and Grant Pothast. The latest fund launch comes in the wake of the firm’s $14 million capital raise for a seed investment fund in May.
Key to Cultivation Capital’s agtech strategy is a partnership with the Yield Lab, a VC firm focused on early-stage agri-food tech startups. Together they put capital to work across the agtech spectrum, including market segments like crop innovation, animal health, precision ag, sustainability, logistics and food ingredients, with an initial investment range of $100,000-$1.5 million. With 55 venture capital investments under its belt, the Yield Lab boasts a median deal size of $2.9 million,
For more, continue reading at Global AgInvesting.