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Agtech Industry Overview and Investment

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Royse Agtech offers an indepth panel discussion surrounding the growing agricultural tech atmosphere (08/2016). Panel is in partnerships with Moss Adams LLP.

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Agtech Industry Overview and Investment

  1. 1. Investment in AgTech
  2. 2. Presented by: IRS Circular 230 Disclosure: To ensure compliance with the requirements imposed by the IRS, we inform you that any tax advice contained in this communication, including any attachment to this communication, is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to any other person any transaction or matter addressed herein. Roger Royse @rroyse00 www.rroyselaw.com
  3. 3. Need for Agriculture Technology • The Earth’s population is expected to reach 9 billion by 2050 • The United Nations’ Food and Agriculture Organization predicts that food production must increase by 60% - 70% (Kauffman) to meet increasing demand • Prices will increase by 50% • 90% of the growth in crop production needs to come from higher yields on existing farm land • More output from fewer inputs
  4. 4. Context By the Numbers - 9 Billion people - 100% more food - 70% from technology By 2050
  5. 5. Agriculture Economy • Average farm in California is a $6 million to $10 million business • The agriculture industry is a $46 billion per year industry in California • 70% of all farms have internet access as of 2012 “California is at the cutting edge of innovation within the agriculture sector from water use efficiency to research advancements and product development. Through social media and the information age we have the power to transform people’s relationship with government in a positive way.” - Secretary Karen Ross, CFDA
  6. 6. Funding Agriculture Technology • The agriculture technology market is still immature, with most deals done at the seed stage • In 2012, there was an estimated $27 billion of venture capital investment in the United States • Of this, agriculture technology companies raised about $100 million resulting from 40 deals • While a majority of U.S. venture capital deals take place in Silicon Valley, only around 20% of agriculture technology deals take place there, with the rest occurring closer to big agriculture markets
  7. 7. Funding Agriculture Technology
  8. 8. Funding Agriculture Technology
  9. 9. Investment Sources CROWDFUNDING ACCELERATORS INVESTMENT FUNDS
  10. 10. Precision Agriculture • Allows farmers to determine when, where, and what to plant with a level of accuracy not previously possible • Today, precision agriculture provides: • Satellite navigation and guidance • Monitoring and mapping of yields • Live soil information through sensors installed in vehicles
  11. 11. The Future: Big Data • Companies are now collecting vast amounts of data to improve precision agriculture and predict farming trends • Data can be uploaded to the cloud in real-time providing farmers with instant information on their land and crops • Climate Corp., recently acquired by Monsanto Company for $950 million, uses Big Data to generate trillions of data points to predict daily patterns and insure farmers against the weather scenarios of their choice
  12. 12. IT Social Mobile Analytics Sensors
  13. 13. Social Media Recognizing the Global Agriculture Community is Connected and Engaged Credit: mAgriculture: The Application of Mobile Computing to the Business of Farming
  14. 14. Mobile Only (and Beyond) The enterprise potential of mobile is greater than today’s smartphone and tablet apps Emerging Threats Public Weigh Scales Plant Pest Detection Report a Pest Cattle Brand ID CA Geoportal CA Mobile Gallery
  15. 15. Analytics Putting the Power of Research in the Hands of California Farmers while Protecting our Environment Variety • Sensors • Reports • Images • Equipment • Meters • Forecasts • Pricing • Location • People Volume • Sensors • Equipment • Pumps • Meters • People • Satellites • Drones • Forecasts Velocity • Batch • Monthly • Weekly • Daily • Hourly • Near Real Time • Real Time BIG DATA
  16. 16. Problems / Opportunities • Data Standards • No standard today • Makes data use/cooperation a challenge • There are groups working on it (AgGateway, Open Ag Data Alliance) • Data Privacy/Ownership • Who owns the data? • Who controls the data? • Is there intellectual property in the data?
  17. 17. Legal Issues: Data Ownership and Privacy Data Ownership: • The American Farm Bureau Federation (“AFBF”) warned that companies collecting data from farmers may use the data to their own commercial advantage in ways not foreseen by farmers • The AFBF advised farmers to consider their data ownership rights when agreeing to contracts which store data in the cloud Privacy: • Environmental activist groups are demanding information and transparency from farmers and with data in the cloud there is now more information for them to request • In 2012, the Environmental Protection Agency controversially released personal information on farmers following a Freedom of Information Act request from environmental groups • Data could be sensitive and farmers may want to keep some information out of the public eye e.g. pesticide use
  18. 18. Drone Technology • Drones could revolutionize farming through: • Mass data collection • Surveying land and planting seeds • Surgical precision in the use of pesticides, fertilizer, and water • Brazil and Japan already use drones in agriculture, however commercial use of drones is still prohibited in the U.S. • Safety and privacy concerns that affect urban areas may not apply to farms • However, farmers are concerned that drones will be used by environmental groups to spy on and monitor their operations
  19. 19. Food Technology
  20. 20. Other Technologies • Biotech • Soil • Water • Pesticides, herbicides • GMOs • Hydroponics and aeroponics • Big Data
  21. 21. Concluding Thoughts • Conferences • Incubators and Accelerators • Crowdfunding • Venture Capital • Angel Funds
  22. 22. Contact Us www.rroyselaw.com @RoyseLaw MENLO PARK 149 Commonwealth Blvd. Suite 1001 Menlo Park, CA 94025 LOS ANGELES 445 S. Figueroa St. 31st Floor Los Angeles, CA 90071 SAN FRANCISCO 135 Main Street 12th Floor San Francisco, CA 94105 Menlo Park Office: 650-813-9700
  23. 23. Panelists Roger Royse Royse Law Firm Bryan Powell Moss Adams LLP Larry Kammerer Moss Adams LLP Eric Ellestad Local Roots Erica Riel-Carden Royse Law Firm

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