Key Takeaways:
- Funding Secured: eAgronom secured €10 million in its Series A2 equity round, led by Swedbank AB, which invested €4 million.
- Investor Support: Existing investors Icos Capital, Soulmates Ventures, and SmartCap Green Fund have increased their investments.
- Expansion Plans: The funds will expand eAgronom’s presence in key markets and scale sustainable farming programs.
- Carbon Program: The funding positions eAgronom to sell carbon credits and improve practice verification capabilities.
- Sustainable Financing: Swedbank offers favorable financing terms for Baltic agricultural customers meeting eAgronom’s sustainable loan criteria.
eAgronom, an agriculture-focused climate tech company, has announced the successful completion of its Series A2 equity round, securing €10 million. This includes €4.2 million raised during a booster round last year, now converted into equity, plus an additional €5.8 million raised this year.
Leading Investment and Support
Swedbank AB leads the round with a €4 million investment, marking a significant vote of confidence in eAgronom’s mission to promote sustainable agricultural practices. Additionally, investors from the 2023 convertible round – Icos Capital, Soulmates Ventures, and SmartCap Green Fund – have increased their investments to support the company’s growth plans.
Expanding Presence and Scaling Programs
The funds raised will be utilized to expand eAgronom’s presence in key markets and scale the company’s sustainable farming programs, particularly those focusing on Scope 3 emissions and sustainable financing. As part of its ongoing fundraising efforts, eAgronom plans to raise an additional €2-4 million later this year.
Robin Saluoks, co-founder and CEO of eAgronom, emphasized the importance of their mission: “The average farmer has only 40 harvests to experiment with throughout their entire career. This makes the farming sector extremely conservative. If something is more or less working, then it makes sense to continue with it. eAgronom’s sustainability programs – food value chain/scope 3, offsetting, sustainable finance, and others – help reduce farmers’ risk by providing extra incentives and education. The ongoing funding round will help us to scale these initiatives to many more farmers.”
Carbon Program and Sustainable Financing
eAgronom’s Carbon Program aims to leverage the efficient carbon sequestering capabilities of soil, which is second only to the world’s oceans as a natural carbon sink. The program adheres to strict principles and methodologies as outlined by the greenhouse gas crediting program Verra. This initiative not only helps reduce the carbon footprint but also offers farmers an additional revenue stream through the sale of carbon credits.
Swedbank’s ongoing cooperation with eAgronom includes offering favorable financing terms to Baltic agricultural customers who meet the criteria required for eAgronom’s sustainable loan certificate based on the EU Taxonomy proposal. Jon Lidefelt, Head of Baltic Banking at Swedbank, commented, “Enabling our customers to transition to products and services is key for Swedbank. The partnership with eAgronom adds to a fantastic overall solution for our agricultural customers in Estonia, Latvia, and Lithuania. With this investment, we advance our commitment in eAgronom to strengthen the ecosystem of partnerships for the benefit of our customers.”
Promoting Sustainable Practices
eAgronom has been instrumental in promoting sustainable agricultural practices through its programs, which include field trials and seminars with partner farmers. These initiatives help determine best practices for specific regional climate and soil conditions. The new funding will enable eAgronom to onboard more farmers, store more carbon in the soil, and enhance its practice verification capabilities.
