GREENSOIL Launches Second Investment Fund Focused on Israeli Agro & Food Technology
The Fund’s first closing is led by a group of private investors from Canada, the United States and the Netherlands.
Raanana, Israel, and Toronto, Canada – February 12, 2013 – GREENSOIL announced today the launch of Greensoil II Investment Fund L.P. Similar to GreenSoil Investment’s first fund – a $12M fund launched one year ago – GreenSoil II will invest in companies which have developed innovative agro and food technologies, with existing or near-term revenues and plans for international expansion.
The Fund’s Toronto-based Chairman, Alan Greenberg and its Israel-based Managing Partner, Gideon Soesman, led the investment, together with a group of private investors from Canada, the United States and the Netherlands.
GreenSoil’s first fund has invested in two ventures with the potential of revolutionizing their respective markets. Fruitura is pioneering the scalable production of natural fruit cells for health-enhancing functional ingredients; Rootility focuses on high throughput plant breeding for root optimization, achieving significant yield increases and stress tolerance.
With the world population growing rapidly, the stress on resources to feed more than 7 billion people is increasing. According to the World Bank, arable land per capita, a key measure for food production capacity, has fallen from 0.3 hectare in 1961 to 0.2 hectare today. At the same time, trends associated with global warming and water over-consumption lead scientists to expect that by 2025, 40% of the world’s population will be living in areas with severe water stress.
This is already evident in actual food prices and the grain stores maintained by countries worldwide. The Food and Agriculture Organization of the United Nations (FAO) has shown that food prices, specifically prices for meats and dairy, have risen considerably over the past ten years, with prices in 2012 already exceeding levels of 2007-2008, which is considered a crisis year in food prices.
Yet, surprisingly enough, investing in Food and Agro innovation is not a common investment theme. In Israel, which is home to some of the world’s most innovative food and agro companies, GreenSoil is the only fund that invests solely in food and agro. This is despite the unique characteristics of Israel’s agricultural development, which makes it a breeding ground for agricultural excellence.
GreenSoil’s ~$16M second fund will focus on companies whose technology can help produce unique foodstuffs, food additives, seeds, irrigation and agricultural management systems. Investments by the Fund will be in early growth stage, Israel-based, companies with revenues or close to first revenues. First investments are already earmarked and as a result investors know where their cash will be invested.
Asked about GreenSoil’s achievements to date, the Fund’s Chairman Alan Greenberg said “Within just a year we have built a recognized venture fund focused on technologies that solve pressing global needs – supplying increasingly sophisticated foods to a growing world population – with dwindling resources. Our goal is to find and invest in the companies that push technological boundaries and will help the world to produce more with less.”
Gideon Soesman, GreenSoil Investment’s managing partner said: “We are now selecting and evaluating the next set of companies with the potential to bring revolutionary Israeli technology in agro and food to international markets. Time and again our team has been impressed with the creativity, expertise, technological resourcefulness and ingenuity of the entrepreneurs and deal flow we meet – and the pressing problems they solve”.
GREENSOIL is a privately owned investment fund, focused on investing in Israeli companies that have developed relevant technology and know-how for the Agro & Food Industry. The Fund provides equity capital together with hands-on management expertise and support to high-growth companies that have already generated initial sales or are very close to generating sales.
GreenSoil‘s team of professionals has the right background, connections and know-how to provide its portfolio companies with the business development expertise in global markets so they can profitably manage their relationship with large food and agro companies and become valuable acquisition targets.
GreenSoil is unique in its sole focus on this industry in Israel.