Hort Innovation & Artesian collaborate to launch world-first VC fund set to drive breakthrough innovation in Australian horticulture
Artesian, and Australia’s grower-owned research and development corporation, Hort Innovation, today announced a first-of-its-kind $60M venture capital co-investment fund to advance fruit, vegetable, nut, turf and nursery farming.
The Hort Innovation Venture Fund will target early-stage, high-growth local and international startup businesses that can that improve farm input and output processes through avenues such as automation and robotics, smart irrigation, breeding and biotechnology.
The fund will identify 20-30 new startup businesses over the coming five years for pre-seed to early series A equity funding.
Hort Innovation chief executive officer Brett Fifield said now more than ever, the need to diversify investment approaches and bring onboard new thinking to support the industry’s sustainability objectives and meet local and global consumer demand is critical.
“The Australian horticulture industry is facing unprecedented challenges - high production costs, labour issues, extreme weather impacts to name a few,” he said.
“Our produce is also in huge demand due to its reputation for quality, with horticulture being Australia’s fastest growing agriculture sector, having experienced a 46% increase in value over the past five years including a 4% hike in exports.
“The Hort Innovation Venture Fund aims to get innovation in the hands of growers as quickly as possible, arming them with the tools they need to be as sustainable as possible while leveraging the opportunities that exist for them.”
Hort Innovation Venture Fund focus areas align with the UN’s Sustainable Development goals. Examples include:
Increasing productivity: Helping Australian growers to become more adaptable, resilient and financially sustainable. This may be in the use of AI to predict what to do and when to do it, new automation options, or the use of satellite technology to guide decision-making.
Sustainability: Delivering new innovations Australian growers of fruit, vegetables, nuts, turf and nursery plants can employ. For example, enhancing monitoring capabilities to optimise water use, track and reduce carbon and expand chemical use alternatives.
Consumption: Supporting healthy living by meeting changing consumer preferences, locally and overseas. For example, naturally breeding produce that is nutrient dense, with a long shelf life while being aesthetically pleasing.
Opportunities to upskill existing industry participants and expand local career opportunities in horticulture, particularly in the science and technology arenas, are also a priority.
Artesian CEO Jeremy Colless said the firm was excited about the partnership with Hort Innovation, emphasising its potential to drive impactful investments in cutting-edge technologies that will deliver sustainable, long-term benefits for Australian produce farmers and consumers alike.
“Delivering the world’s first horticulture-specific venture capital fund with Hort Innovation is a significant milestone and an example of how Artesian works with leading industry, corporate, government and institutional investors to develop tailor made solutions that address innovation challenges,” he said.
Mr Colless highlighted the collaboration as a unique opportunity to elevate productivity and innovation across the agriculture sector, fostering resilience and advancing Australia's position as a leader in sustainable horticulture.
Artesian currently manages more than $1.2 billion in assets under management including through technology and venture capital investments across energy transformation, agrifood and natural capital, healthcare and emerging technology segments.
The Hort Innovation Venture Fund is the first new fund to be rolled out through Hort Innovation Frontiers. Launched in June, the dedicated co-investment program will invest up to $500M over the next 10 years to seize big opportunities and develop solutions to horticulture’s major challenges. For more, go the Frontiers website [link].
Examples of existing research and development programs
Case study no 1: Productivity – Getting drones to do the job of bees
As the use of protected glasshouses to grow fruit and vegetables increases with climate change, it has been found that traditional pollinator bees are reluctant to pollinate in these environments. As a result, pollination by hand is often required.
In response, through Hort Innovation, Australian growers and researchers have partnered with Singaporean tech company, Polybee, to trial the use of ‘microdrones’ that pollinate plants using the wind from small inbuilt fans. These devices operate 24/7, automatically returning to a dock to recharge when required, significantly reducing labour costs and increasing efficiency.
Case study no 2: Sustainability – Doing more with less
Sustainable practices are critical to Australian farmers who are keen to maintain land quality for future generations. Investors, export markets and local consumers are also increasingly looking at the sustainability credentials of produce.
A banana grower in the Great Barrier Reef catchment, Gavin Devany, has worked with Hitachi through Hort Innovation to minimise the footprint of his business. Through a specially developed dashboard, he tracks advanced sensing, leachate monitoring and sediment analysis to ensure best management practices relating to irrigation, fertilisation and plant care.
Case study no 3: Consumption – More consistent produce
Data shows one bad eating experience can turn a consumer off buying a fruit or vegetable again.
To limit the chance of that happening, Australian scientists are collaborating with their global counterparts to develop new papaya, strawberries, mangoes, pineapples and passionfruit varieties that are based on consumer preference testing. Each of these naturally-bred varieties will be tailored to smell, taste, feel and appear in a way that is desirable to purchasers. These varieties could also be easier to grow for farmers, requiring less water and being more disease resistant.
What is horticulture?
Horticulture is the third largest agriculture sector in Australia and is the fastest growing with a 44% increase in value over the past five years.
Industries serviced by the Horticulture Venture Fund include: Almonds, Apples and Pears, Avocados, Bananas, Berries, Cherries, Chestnuts, Citrus, Custard Apples, Dried Grapes, Dried Tree Fruit, Lychees, Macadamias, Mangoes, Melons, Mushrooms, Nashis, Nursery products, Olives, Onions, Papayas, Passionfruit, Persimmons, Pineapples, Pistachios, Potatoes (fresh and processed), Processed Tomatoes, Prunes, Pyrethrum, Raspberries, Blackberries, Strawberries, Summerfruit, Sweet Potatoes, Table Grapes, Turf and Vegetables.