Key Takeaways:
- Hexafarms has closed a €1.3 million pre-seed funding round led by Speedinvest, with participation from Mudcake and Techstars.
- The funding will enhance hexafarms’ AI and machine learning capabilities and expand its R&D team.
- Hexafarms aims to optimize greenhouse food production, potentially reducing variable costs and losses by nearly 30%.
- This quarter, the company processed around 9 million kilos of strawberries and tomatoes and holds the widest portfolio of supported crops in Europe.
- The controlled environment agriculture market is projected to reach $100 billion by 2030.
Funding and Development
Hexafarms has announced the closing of a €1.3 million pre-seed funding round. This round was led by European early-stage investor Speedinvest, with additional participation from Mudcake and Techstars. This new investment brings hexafarms’ total capital raised to over €2.5 million. The funds will be used to further develop hexafarms’ AI and machine learning capabilities and expand its team of research and development experts.
Enhancing AI Capabilities and Crop Portfolio
With this investment, hexafarms plans to increase the accuracy of its AI predictions and expand its crop portfolio. Currently, hexafarms has the widest portfolio of supported crops and cultivars in Europe, based on public information. The company is processing an estimated 9 million kilos of strawberries and tomatoes this quarter, highlighting its impact on agriculture.
Addressing Agricultural Inefficiencies
David Ahmed, Founder and Chief Executive Officer of Hexafarms, stated in an interview with EU startups, “The global agriculture industry plays a fundamental role on a vast scale, but it’s under-optimized. Our mission is to address this issue. With our evolving AI models, we aim to unlock potential savings of nearly 30% in variable costs and losses.” Ahmed emphasized that hexafarms’ AI can cater to each plant’s individual needs at any scale, enhancing the capabilities of agricultural practices.
Investor Confidence and Future Outlook
Andreas Schwarzenbrunner, Partner with Speedinvest’s Climate Tech & Industrial Tech investment team, commented, “The agricultural sector needs innovative solutions to address the pressure from climate change on commercial food production and food insecurity. We are confident in hexafarms’ potential and look forward to seeing them develop their AI and machine learning capabilities and expand their team of experts. Their app can potentially transform commercial food production through optimization and digitalization.”
Anna Ottosson, Founding Partner at Mudcake, added, “With over 9 billion people needing healthy and nutritious food in the coming decades, increasing the efficiency of our production systems is crucial. Hexafarms’ AI-optimized software for commercial greenhouses will help ensure food security for current and future generations. We are proud to support them in this important mission.”
Photo by Maksym Diachenko on Unsplash