Exploiting Israel's Agricultural Brilliance for International Influence
Venture capital firm Copia Agro & Food Technologies is making strides in connecting innovative agricultural and food technology research with smaller industrial corporations, with a particular focus on Israel. The firm, which specializes in early-stage investments, aims to bridge the gap between research institutions and businesses, helping to commercialize groundbreaking agri-food technologies for global markets.
The firm's second fund, Copia 2, is set to raise between $80m and $120m, with a strong focus on Israel. This fund has a broader international outlook and is expected to invest in a diverse portfolio, with 48% allocated to agri-biotech, 20% to innovative food, 19% to novel robotic and mechanistic solutions, and 13% to novel farming solutions.
One of the projects financed by Copia is ToBe2, which addresses the global crisis of honeybee decline caused by the parasitic mite, the varroa. An automated device developed by an Israeli company as part of ToBe2 has shown a 98% reduction in varroa infestation and enables higher honey yield with no chemical residues.
Another technology developed by the same company, BudUp, targets bud dormancy in crops such as grapes, kiwifruit, peaches, cherries, pistachios, and apples. Registration for BudUp is expected in Israel and South Africa this year, with trials across the world next year and sales beginning in 2023.
Copia's approach involves setting up a special purpose company for each project, retaining a significant stake while the research institution and industrial partner firm hold the rest. The goal is to license these technologies to global multinationals in the sector, with a focus on improving the food supply chain.
The first Copia fund, established in 2014, raised $27m and has 28 investments, 26 of which are from research institutes and 2 from start-ups. The firm's investments address food security, climate change, and the negative impact of agriculture on the environment, covering as many as seven of the UN Sustainable Development Goals.
Copia puts tremendous efforts into strategic IP protection and has at least two patents protecting its mature technologies from several angles. The investment in BudUp was $200,000, and the expected exit value is under $100m. Copia is expected to exit with ownership of around 30% of the special purpose company.
The technology is moving from field trials in Israel and New Zealand to sales in these countries in 2022, followed by expansion across the US and Europe in 2023. This expansion strategy underscores Copia's commitment to guiding portfolio companies to tailor their technologies for international demand, leveraging Israel’s strong innovation ecosystem and their own networks to access global agri-food markets.
In Israel, where the government invests heavily in agricultural research due to the country's limited resources, Copia's approach is particularly relevant. By providing venture funding, Copia Agro & Food Technologies enables research breakthroughs to transition from the lab to commercial products, supporting startups in refining their technologies, validating market fit, and preparing for large-scale deployment.
Technology developed by the same Israeli company, BudUp, is addressing the issue of bud dormancy in crops such as grapes, kiwifruit, peaches, cherries, pistachios, and apples. This technology, partly funded by Copia Agro & Food Technologies, is expected to impact weather patterns through improved crop yields and potential reduction in agriculture's negative effects on climate, aligning with Copia's focus on food security and climate change.
