ST865230

This company is transforming the agriculture industry with a cutting-edge real-time Carbon Intensity (CI) scoring platform. By leveraging live, on-farm data, their solution provides accurate, auditable CI scores that empower farmers to reduce their carbon footprint and align with sustainability regulations. Unlike competitors, their platform delivers instant results and full traceability from field to consumer. With significant partnerships and discussions with key stakeholders, they are positioned for rapid growth in the agricultural sustainability market, projected to expand by 20-25% annually.

With acquisition talks already underway, investors should act quickly. Their preference for venture funding means there’s still an open window for investors to get involved before a potential acquisition closes.

Overview

Industry: AgTech / Climate Tech
Founded: 2022, Canada
Mission: To create a sustainable future for agriculture by measuring and improving the carbon footprint of crop production. The company empowers farmers to reduce their carbon impact and market their products based on sustainability credentials.
Unique Value Proposition: Pioneers in real-time Carbon Intensity (CI) scoring down to the bushel level using live, on-farm data. Their platform addresses a significant market gap by providing accurate and standardized emissions data, helping farmers meet regulatory requirements and improve sustainability.

Problem & Solution

Problem: The agricultural carbon credit market is ineffective, with no standardized tool for measuring true Carbon Intensity (CI). Carbon offsets fail to address the root problem of agricultural emissions.

According to McKinsey & Company’s 2020 Agriculture and Climate Change report, more than one-quarter of the world’s greenhouse gas emissions come from agriculture, forestry and land-use change. Unless actively addressed, these emissions are expected to increase as more people populate the earth and the need for food continues to grow.
Solution: The company offers a platform for measuring, reporting, and verifying CI in agricultural products, providing an accurate, auditable, and scalable solution. Their CI score is based on real-time on-farm data and delivered in minutes, helping farmers improve sustainability and meet compliance standards.

The platform has several unique features that have made it a leading market choice for CI scoring needs:

CI scoring based on live on-farm data as received rather than historical data for enhanced accuracy
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Fully scalable with the ability to CI score from a single product from a specific field to groupings of thousands of farms

Easy onboarding (<5 minutes for initial set-up) for users and API-driven limiting data entry requirements

CI score that is provided in minutes and updated in real-time

Service costs are significantly less than other providers

AI tool in production that will allow growers to understand the CI score impact of different practice changes and crop planning decisions

Scope 1, 2 and 3 emissions reporting available to any participant along any supply chain

On course to build the world’s largest geotagged GHG library

Market Potential

Target Market: Agricultural supply chain, from farms to consumer purchase, including grain buyers, insurers, and CPG companies.
Market Size:

TAM: $3.1 Billion USD (2 million farms in the U.S. and Canada)
‍SAM: $330 Million USD
‍SOM: $45 Million USD
Growth Rate: 20-25% annually, driven by increasing focus on climate change, sustainability, and regulatory compliance.
Key Trends: Rising consumer demand for sustainable products, government regulations like 45Z, and interest in cleantech.

Product

Product: CI Scoring Platform
Core Features: Real-time CI scoring, full supply chain traceability, scoped emissions reporting, and an AI-powered tool to assess the impact of practice changes on emissions.
Technology Stack: Front-end built with HTML5, CSS, HTMX; back-end built with Golang, GraphQL, and PostGres databases.
Stage: Market-ready with paying customers.
IP Status: Patented algorithms; trademarked logo and company name.
Upcoming Features: Farmer sandbox for testing CI scoring based on variable inputs, geographical percentile rankings, sustainability and environmental scoring.

Business Model

Revenue Model: SaaS pricing with subscription-based customer retention.
Sales Channels: Grain companies, agricultural co-ops, banks, agricultural input suppliers, and manufacturers.
Key Partnerships: Current partners include RBC, Nutrien, G3 Canada Limited, and Ag Partners Co-op. Discussions are underway with American Express and the USDA.
Customer Acquisition Strategy:

‍Marketing Plan: Working via partnerships with key partnerships who are the front-facing owners of the grower relationship, allowing us to access customers in bulk and at a large scale.

‍Customer Retention Plan: Mission-based customer retention plan long-term subscription model.
Current Partnerships: Current partners include RBC, Nutrien, G3 Canada Limited and Ag Partners Co-op.
Potential Future Partnerships: Currently in active discussions with American Express and the USDA.

Financials

Current Revenue: $160,000 CAD in fiscal year 2024.
Burn Rate: $10,000 CAD/month.
Runway: 16 months.
Funding to Date: $125,000 CAD. - Use of Funds: marketing, sales, legal and customer acquisition.
Projections:

1-Year Projection: $12.7 million USD.
‍3-Year Projection: $47.9 million USD.
‍5-Year Projection: $112.4 million USD.
Key Financial Metrics:

CAC: $125 USD per customer
‍LTV: $4,500 USD per customer
‍Gross Margin: 85%
‍Net Profit Margin: 47%

Team

CEO: Experienced sales and business development leader with over 15 years in agriculture and related sectors.
‍Key Team Members: CTO and CMO, with plans to hire additional developers and channel managers.

Competitive Analysis

Competitive Advantage: Unlike competitors, the company uses live on-farm data for real-time, verifiable CI scores and offers full supply chain traceability.
Strengths and Weaknesses of Competitors:

Strengths: funding, partnerships.

Weaknesses: use model data rather than live on-farm data, weak algorithms, mostly focused on Scope 3 emissions reporting.
Barriers to Entry: Patented algorithms, key partnerships, and early market presence.

Traction

Customers: 150 by the end of the year, with a growth rate of 1400%.
Partnerships: Established partnerships with major industry players.
Milestones: Product version 1.0 released in spring 2024, with version 2.0 expected in fall 2024. The company has been recognized by major industry publications (Forbes, The Western Producer) and accelerator programs.

Risks & Mitigation

Market Risks: Competition, policy changes.
Operational Risks: Loss of key personnel.
Financial Risks: Cashflow challenges.
Mitigation: Strong strategic partnerships, government interaction, and pricing power.

Funding Requirements

Amount Sought: $2.5 million USD.
Use of Funds: Product Development, Marketing and Sales, Hiring, Others
Runway with Funding: 32 months.
Valuation: $17.5 million USD.

Exit Strategy

Potential Exit: IPO or acquisition, with two acquisition offers already received.
Timeline: 2-5 years for acquisition, 7 years for IPO.