Women-led investment firm The51 held the final close for its $51-million Food and AgTech Fund after actively raising for nearly the past four years.
The Food and AgTech Fund is The51’s first sector-specific fund, and will invest in diverse founders who are transforming food and agriculture with advanced technology between the pre-seed and Series A stages.
A joint statement fromThe51and Alberta Crown corporation ATB Financial, which contributed the final dollar, said the fund close marks a significant milestone in the current challenging venture capital landscape.
“This final close empowers The51 Food and AgTech Fund to accelerate the growth of early-stage companies revolutionizing agriculture,” The51 general partner Alison Sunstrum said in a statement. “By leveraging technologies like AI, robotics, and biotechnology, these companies are poised to transform the industry.”
The51 initially announced the Food and AgTech Fund in September 2021 with hopes to raise between $25 and $30 million, but expanded to a $50-million target after receiving more soft commitments and investor interest in 2022.
RELATED: The51 closes $30 million of targeted $50-million Food and AgTech Fund
The firm went on to secure $30 million of its $50-million target in April 2023, supported by lead investor Farm Credit Canada, with limited partners (LPs) including Alberta Enterprise Corporation, National Bank of Canada, family foundations and offices, and several undisclosed individual accredited investors from agribusiness, farming, and industry backgrounds.
Sunstrum told BetaKit at the time that, while the group was initially optimistic, they saw a shifting climate and a withdrawal of LP investors when they tried for an earlier close in 2022. The51 also told BetaKit at the time that it hoped to fully close the fund in June 2023. BetaKit has reached out to The51 for more details on the fundraising process, but did not hear back by press time.
In October 2023, the Food and AgTech Fund was also one of five recipients splitting $25 million CAD as part of the Government of Canada’s renewed Venture Capital Catalyst Initiative inclusive growth stream.
Sunstrum has previously told BetaKit that The51 anticipates the average investment from the Food and AgTech Fund will be about $750,000 per startup, and that it has already invested $350,000 in Calgary-based cleantech company Synergia Biotech.
Feature image courtesy The51.