Creating a Global Agtech Hub in the Research Triangle Adrian Percy - PowerPoint PPT Presentation

Creating a Global Agtech Hub in the Research Triangle … Adrian Percy Chief Technology Officer

California-Based VC With a Global Outlook Toronto Ireland Palo Alto Israel Since 2006, we’ve provided growth capital San Diego Research Triangle to partner with the best and boldest companies that are helping to feed the world sustainably. New Zealand 1

Global Challenges for Food Demand and Production • ~10 Billion world population • Loss of produce along the food chain • 10 Billion world population • Changing consumption patterns • Projected 10 billion world population • 60% increase in food demand • Limited arable land • 17% Yield reduction due to climate change • 60% increase in food demand • Limited arable land • Impact of climate change • Invasive pests • Depletion of ground water • Depletion of ground water • Lack of available labor • Weed and pest resistance • Loss of produce along the food chain • Changing consumption preferences 2

$5TN (1) Ag & Food Opportunity Globally Agtech is a horizontal, utilizing technologies from other venture sectors to improve productivity, quality and sustainability of agriculture Technology Tailwinds Industry Themes Big data / AI In-flow of private innovation capital Digitization of ag Open innovation model being adopted by “Big Ag” Imagery and sensors Heightened regulatory requirements Automation (labor) Changing consumer Breakthrough genomics preferences (CRISPR) Sustainability & impact agenda Novel farming (vertical farms, plant-based proteins) ALT PROTEIN SUPPLY PROCESSING & E-COMMERCE ALT DAIRY CHAIN PACKAGING NOVEL CONSUMER HW ENABLED MEAL KITS/ INGREDIENTS HEALTH DELIVERY (1) McKinsey: “Pursuing the global opportunity in food and agribusiness”. 3

Investment Into Agtech Continues to Grow Private Investment (VC) in Agtech • $2.2B invested in agtech in 2018 • ~$7.3B invested since 2012 $2.50B 350 . 299 300 ‘12-’17 CAGR ($): 40% $2.00B 244 250 217 $1.50B 200 171 159 150 $1.00B 90 100 83 60 $500.00M 44 50 $106M $326M $347M $292M $775M $683M $1.25B $1.86B $2.26B $0.00M 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Capital Invested Deal Count Source: PitchBook. 4 (1) As of April 2019.

Exit Activity Is Evolving as the Sector Matures Ag Majors have traditionally been acquirers 2012 | $425M 2017 | $300M 2017 | $305M 2018 | n.a. 2010 | $400M 2013 | $930M 2018 | $63M IPOs are an option for the truly elite companies disrupting the sector $1.5B Initial Market Cap (2019) And consolidation emerges as an avenue to establish a broad platform 2019 2018 2018 5

Agtech Is a Worldwide Phenomenon UK Saskatoon Wageningen (Netherlands) Ireland Guelph St. Louis Boston Israel Silicon Valley Research Triangle Bangalore Piracicaba New Zealand 6

What Makes a Successful Agtech Hub? • ~10 Billion world population • Loss of produce along the food chain • Changing consumption patterns • 10 Billion world population • Access to capital, talent & facilities • 60% increase in food demand • Long-standing local networks • 17% Yield reduction due to climate change • Limited arable land • Engaged government support • Invasive pests • High quality research • Depletion of ground water • Breakthrough technology • Weed and pest resistance • Local customers & channel partners 7

The Research Triangle Has The Ingredients to be a Global Player • ~10 Billion world population • • 10 Billion world population Loss of produce along the food chain Presence of major agribusinesses • • Changing consumption patterns Vibrant start-up community • • 60% increase in food demand Access to (limited local) capital • • 17% Yield reduction due to climate change Excellent talent pool • • Limited arable land New infrastructure (inc. greenhouses) • • Invasive pests • Depletion of ground water Elite academic institutions • • Weed and pest resistance NC State‘s Plant Science Initiative • Affordable economics • Landing pad for European companies • Diverse agricultural systems • 8

A Great Story That Needs to Be Told… • ~10 Billion world population • Loss of produce along the food chain • Changing consumption patterns • 60% increase in food demand • 17% Yield reduction due to climate change • Limited arable land • Invasive pests • Depletion of ground water • Weed and pest resistance 9

THANK YOU! Email: apercy@finistere.com LinkedIn and Twitter: @adrian.percy 10