VC Firm Launched That Aims To Corral Agriculture Returns

Tom Burroughes

19 October 2016

Prairie Crest Capital, a venture capital firm focused on early to mid-stage investments in breakthrough agriculture and technology firms, has been launched in Des Moines by principals Barry Adams and Mark White.

The firm was formed to tap into “underserved investment opportunities in the agriculture and technology sectors, particularly in the Midwest”, the founders said in a statement yesterday.

While agriculture and downstream products account for nearly 8 percent of the US gross domestic product, it counts for less than 3 percent of venture capital investments on average over the past three years. Prairie Crest anticipates investment activity in the agriculture technology space to grow from $1.2 billion to approximately $7 billion over the next several years.

“Although the Midwest has approximately 20 percent of the population, research and development spending, top research universities, and entrepreneurial talent, our region receives less than 5 per cent of venture capital investment,” White said. “Also, the rise of new and adaptive agriculture technologies such as precision agriculture and predictive software indicate a growing and underfunded pipeline of solutions in Ag Tech.