Fund was created in partnership with impact investment firm, Artesian, and includes a A$60mn investment through Frontiers
As Australian fruit, vegetable and nut growers face challenging economic conditions and a drop in consumption, Hort Innovation has announced it will activate A$60mn of investment into early-stage startups to drive positive change.
Through a partnership with Artesian, a leading alternative and impact investing firm, the new Hort Innovation Venture Fund will back promising startups whose concepts and prototypes have the potential to make a tangible impact for industry.
The Hort Innovation Venture Fund is the first new fund to be rolled out through Hort Innovation Frontiers which will invest up to A$500mn over the next ten years to develop solutions to horticulture’s major challenges.
Hort Innovation chief executive officer Brett Fifield said now more than ever, it was important to improve productivity and elevate the profile and accessibility of Australian-grown fresh produce locally, and worldwide.
“The Australian horticulture industry is facing unprecedented challenges - high production costs, labour issues, extreme weather impacts to name a few,” he said.
“On top of that, Australian fruit and vegetable consumption dropped by up to eight per cent to June 2023, compared to the year before.”
According to Fifield, the partnership with Artesian aims to build investments in innovation and create a flexible investment framework to accelerate research and development.
“By investing in startups, we are enabling fresh ideas, never-before-seen technologies, and new ways of thinking to make growing easier, more sustainable and cost-effective, and lift consumption,” Fifield said.
The Hort Innovation Venture Fund will have a key focus on increasing productivity, sustainability, consumption and workforce opportunities.
Artesian CEO Jeremy Colless said the firm was excited about the partnership with Hort Innovation and emphasisedits potential to drive impactful investments in cutting-edge technologies that will deliver sustainable, long-term benefits for Australian produce growers and consumers.
“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,” Colless said. “The approach the Hort Innovation Venture Fund is taking is proven, and well suited to address the needs of Australia’s horticulture production industry.”
Artesian currently has more than A$1.2bn in assets under management including through technology and venture capital investments across energy transformation, agrifood and natural capital, healthcare and emerging technology segments.
Macadamia grower Henrik Christiansen said the new structure is valuable for growers to provide feedback on what solutions can be ramped up for commercialisation.
“The venture fund partner model is a great initiative from a grower perspective because there will be a multiplier effect,” Christiansen said. “The industry can choose what we back, and the tech developers we partner with are going to get quality feedback to integrate into solutions. That’s the value Hort Innovation can bring to the equation.”
