Tall Grass Ventures Closes Inaugural Fund at $32M to Advance Agriculture and Food Sectors

Key Takeaways:

1. Successful Fundraising: Tall Grass Ventures (TGV) closed its inaugural fund at $32 million, exceeding initial targets due to high investor interest.
2. Focus on Agricultural Innovation: TGV aims to advance agriculture and food sectors globally through early-stage investments.
3. Diverse Investor Base: The fund attracted various investors, including institutional investors, grain and livestock producers, and technology founders.
4. Value-Driven Investment Approach: TGV emphasizes adding value to portfolio companies through a balanced, full-cycle view rather than solely focusing on returns.
5. Active Investment in AgriTech: TGV has invested in 11 companies across the agrifood supply chain, addressing critical challenges in global agriculture.

Tall Grass Ventures (TGV), an early-stage venture capital firm focused on advancing agriculture and food globally, announced the successful close of its inaugural fund, totaling $32 million. The fund was upsized due to significant investor interest, reflecting confidence in TGV’s approach and potential impact on a sector vital to the Canadian and global economies.

Commitment to Value-Driven Investment

Wilson Acton, Managing Partner of Tall Grass Ventures, described the firm’s philosophy:

“As an emerging fund manager, in many ways we are a start-up similar to the companies in which we are investing. Since our inception, we have stayed true to our approach focusing on how we are uniquely positioned to add value to a portfolio company as opposed to a singular focus on returns. The result is a balanced, full-cycle view that focuses on the inputs of building great companies which drives the output of leading returns. The support that we’ve received from the capital markets has been validating of our approach and focus.”

Acton highlighted the importance of providing tactical support to founders in addition to capital and emphasized the firm’s collaborative approach, which values diverse viewpoints and a shared passion for agriculture.

Diverse and Committed Investor Base

Tall Grass Ventures Fund I attracted interest from a diverse range of investors, including Manitoba First Fund and Farm Credit Canada, which are leading institutional investors. Other limited partners include grain and livestock producers, financial service firms, private equity investors, technology founders, and executives from various sectors. These investors are interested in fund performance and promoting innovation and resilience in the agricultural sector.

Chris Edwards, Managing Partner and co-founder of TGV, commented on the journey:

“This has been an incredible and special journey alongside a fantastic group of people. It is extremely rewarding seeing what a group of motivated and driven individuals can do when they put their heads together. Every partnership we developed came from a relationship that was genuinely and purposefully nurtured, resulting in both quality and depth. This symbiosis across our network has allowed us to create a continuous feedback loop which ultimately drives higher performance for everyone.”

Ken Ross, CEO of Manitoba First Fund, shared his perspective:

“Manitoba First Fund is proud to invest in Tall Grass Ventures, recognizing their differentiated approach to addressing critical challenges that are central to Manitoba’s economic growth. We believe their focus on early-stage, agricultural innovation will create significant opportunities for Manitoba’s economy and communities, fostering growth and sustainability in a vital sector. This is the first startup fund that we have invested with, and we continue our focus to add further start-up funds to broaden our portfolio.”

Strategic Investments in AgriTech

Tall Grass Ventures Fund I is investing in pre-Series A technology companies across the agriculture and food supply chain. The fund primarily targets companies in Canada that have strong applicability to Canadian agriculture. To date, TGV has invested in 11 companies across various aspects of the agrifood supply chain, including gene editing, biological solutions, software and hardware solutions in specialty crops, plant-tissue sampling, and grain grading.

TGV’s investment strategy aligns with addressing pressing challenges in global agriculture, such as the impact of climate change, increasing food demand, fragile supply chains, rising prices, and geopolitical tensions. The firm believes that with rapid technological advancements, now is an opportune time to invest in and catalyze growth within the agricultural sector.