Semios Raises $100M to Tackle Climate Volatility in Agriculture

The Growing Role of Agtech in Addressing Climate Volatility

Farmers are increasingly confronted with the challenge of climate change, experiencing unpredictable weather patterns that complicate crop cultivation. The stability of our food supply is directly threatened when agricultural yields are compromised.

The agtech sector is responding to this challenge with innovative solutions. A growing number of FaaS (Farming as a Service) startups are emerging, focused on assisting farmers with yield management and integrating data from sources like IoT sensors and weather platforms.

Recent Funding in the Agtech Space

Several agtech companies have recently secured significant funding. Sencrop, a French company, has raised $12 million. Augmenta, based in Greece, has obtained $11.2 million for its yield-boosting platform. Ekylibre, also from France, offers an open-source ERP system for farmers and has completed an undisclosed Series A funding round.

Semios, a “precision-farming” startup originating from Vancouver, Canada, stands out as one of the largest independent agtech platforms globally.

Semios Secures $100 Million in Funding

Semios has successfully raised $100 million in a funding round spearheaded by Morningside Group, a Boston-based private equity and impact venture capital firm.

According to Dr. Michael Gilbert, CEO of Semios, the company’s core mission is to streamline operations for growers. They aim to utilize big data analytics and machine learning to help farmers reduce crop risks and enhance sustainable food production.

Addressing Farmer Challenges

Dr. Gilbert highlighted the difficulties faced by their customers, including severe droughts, wildfires, frost damage, declining profitability, and increasing regulatory demands.

When questioned about competitive pressures, Gilbert stated that while many companies offer individual components of their solution, Semios is currently unique in providing a fully integrated end-to-end platform. This platform encompasses annual planning, pest and disease control, water management, and tools for regulatory reporting and compliance.

Expansion and Acquisitions

With this latest round, Semios’ total external capital raised exceeds $225 million. A previous $100 million round, also led by Morningside Group, was completed in February 2020.

This earlier funding facilitated a series of acquisitions, integrating other agricultural solutions into their crop management platform. These acquisitions included Altrac, Centricity, and Agworld in 2021.

Morningside Group’s Perspective

Mick Sawka, an Investment Manager at Morningside, emphasized the firm’s commitment to investing in companies tackling global challenges. He specifically noted the critical need to maintain and improve the sustainability of food systems in the face of a changing climate.