Investment funds allocate up to R$6 million for agritechs

The so-called “Bridges for Innovation”, launched by Cedro Capital and Embrapa in September 2017, reaches its second edition with the aim of investing in private companies and startups that focus on technologies with agricultural application. Registration can be made until October 21st via the hotsite www.pontesparainovacao.com.br.

Agritechs dedicated to market innovation, which have adopted Embrapa technologies, are in the adoption phase or are interested in a technology licensed by the institution, may apply. Companies must have annual revenues of less than R$16 million and that already earn money from customers through services and products.

Companies based in any region of Brazil are invited to apply, and may be national or subsidiaries of international groups, as long as they have operations and technological development in Brazilian territory. 

For the 2018 edition, the investment fund manager SP Ventures and the accelerators Cotidiano and Acceleratus and the BIOTIC Technological Park are the initiative's new partners. “In this way, the possibilities of investments and connections with acceleration programs for registered companies that are in the initial stage of development and based in any region of Brazil are expanded”, comments Alessandro Machado, managing partner of Cedro Capital. Another novelty for this year is that, in addition to attracting investments, the selected companies will be able to negotiate with the Brasília Technological Park (BioTIC) a physical space for future installation at BioTIC.

According to Daniel Trento, innovation manager at Embrapa, “the concept of the Call came from the perception that one of the biggest challenges for the adoption of technologies by Embrapa partners is to overcome the barrier of prototyping to scaling and, consequently, reach the market of consistently.”

For Trento, the expectation is to repeat the good search for agritechs for investment opportunities. In 2017, Pontes para a Inovação received 42 applications, of which seven companies were finalists. Among the finalists, the company Gestão Integrada de Recebiveis do Agronegócio S/A (GIRA) received investments from the fund managed by Cedro Capital in 2018. 

Embrapa's innovation manager also says that although Brazil is beginning to act in this scenario, this partnership model has already been consolidated for years, established in Silicon Valley, a reference in the development of digital technologies in the United States.

Among the most popular trends in the agribusiness sector that are on the radar of the program's funds and partners are image processing solutions for crop or herd analysis; technologies associated with precision agriculture and livestock farming, new credit and insurance platforms for the agribusiness chain; biotechnology for the development of new seeds and plant varieties; tools that help products and the production chain to market their products and services, among other innovations.

 Registration requirements and timeline

 Companies that apply will go through a selection process made up of members of the two organizing institutions. Those that are selected will discuss the possibility of a contribution that can vary between R$1 million and R$6 million per company, depending on the technology, focus and other directions of the business.

 To participate, companies must have a technological character, that is, the use of technology must be a highlight in the product or service offered and must bring innovation to the market.

 Registration closes on October 21st. Selected companies must make a presentation to the examining committee, which can be in person or via videoconference. If selected as finalists, company representatives will be invited to make a face-to-face presentation of their businesses at Embrapa Headquarters. 

2017 Edition

Held for the first time in 2017, the program had 42 registrants and 7 finalists – among them, the company GIRA – Gestão Integrada de Recebíveis do Agronegócio S/A, which received investments from the fund managed by Cedro Capital in 2018. “The experience of Being selected and participating in the first Bridges to Innovation was one of the best decisions we made as a company. Companies that bring a disruptive model to agribusiness like ours really need institutional support. Not only for the capital invested by Cedro Capital but also for the support and decades of knowledge from Embrapa. All of this guarantees a great difference compared to our competitors”, declares Gianpaolo Zambiazi, founder of the company Gira.