(Reuters) — Crowd funding has found the farm.
AgFunder, an online platform for agriculture-related companies to seek capital through a form of crowd-sourced fundraising, is launching its first campaign by focusing on a California agricultural data company.
It said OnFarm of Fresno, California, plans to use the online platform to raise $400,000 in capital to develop a farm data software service.
The offering is the first to go live on New York City-based AgFunder, which started up late last year and is offering both debt financing and equity offerings for individual and institutional investors in agriculture, said chief executive officer Rob Leclerc.
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The crowd-sourcing strategy received a boost from recent U.S. legislation that eases securities regulations to encourage funding of small businesses.
Leclerc said AgFunder has $1 billion in more than 70 deals in the pipeline to match with investors who want to gain equity in agricultural-related companies.
“It’s an interesting challenge,” he said.
Most of the deals, such as OnFarm, are U.S.-based, but the online site will also be offering investments in Australia, Canada and South America, said Leclerc, a former partner at SeedRock Capital Group, a venture capital firm focused on natural resources and agriculture.
Coming listings include a software company that uses high-resolution satellite imagery to analyze crop growth patterns to tailor water and fertilizer use and a company that has developed a natural barrier system for greenhouse pest control.
Institutional and individual investors have increasingly been putting money into agriculture amid forecasts for a steep rise in global population and higher demand for food.
As well, farmers and other agricultural players have been finding they can raise money for expansion and other needs through a variety of crowd funding platforms.
