By Agroempresario.com

SP Ventures, a prominent Brazilian agrifoodtech investor, has successfully closed $22 million in its third fund, AGVIII, with a goal of raising $80 million. The new fund will focus on startups dedicated to improving the environmental footprint of food production and distribution. Key areas of investment include bio-based crop protections, agrifintech, supply chain optimization, and agricultural education.

The firm’s managing partner, Francisco Jardim, described the fundraising process as one of the most challenging of his career, due to increased scrutiny around previous funds' performance and the evolution of the team. Despite these challenges, the fund received backing from prominent agribusiness leaders, including AGCO, FMC Corporation, CHECK24, Bidra, Grupo Corporativo Fundea, Minerva Foods, and BASF Venture Capital.

The typical investment size for AGVIII will range between $1 million and $2 million, with 40% of the fund’s capital allocated for early-stage investments and 60% reserved for follow-on funding, ensuring continued support for high-potential startups in the portfolio.

SP Ventures has previously invested in several successful agrifintech companies like Agrolend, Traive, and Verqor, as well as supply chain platform ZoomAgri and agriculture data firm Leaf. As part of its strategic vision, the firm plans to continue investing in biologicals and agrifintech, areas with significant growth potential in Latin America. Brazil, in particular, has become a global leader in deploying agricultural solutions, aided by its favorable regulatory framework.

Jardim also sees opportunities in climate finance, given agriculture's substantial impact on Brazil’s CO2 emissions, and is particularly interested in AI technologies at the intersection of biologicals to enhance product discovery. Additionally, traceability, logistics, and environmental assets such as water and biodiversity are areas SP Ventures is keen to explore.

Education is another key focus for the new fund. SP Ventures has previously supported AgroAdvance, an edtech platform offering agribusiness education, and Jardim believes that the agricultural education sector in Brazil has untapped potential. He emphasizes that knowledge dissemination is a critical factor in improving productivity and addressing long-term challenges in the industry.

With the second close of AGVIII expected by the end of Q1 2025, SP Ventures remains committed to driving innovation and sustainability in the agrifoodtech sector. The fund’s strategic investments in biologicals, agrifintech, education, and environmental sustainability are set to shape the future of agriculture in Brazil and beyond.