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By Agroempresario.com
Canadian agriculture technology startup 4AG Robotics has successfully raised CAD 40 million ($29 million) in a Series B funding round, aiming to revolutionize the mushroom industry with its autonomous harvesting technology. The round was led by Astanor and Cibus Capital, with additional support from Voyager Capital, InBC, Emmertech, BDC Industrial Innovation Fund, Jim Richardson Family Office, and Stray Dog Capital.
This significant funding will allow 4AG Robotics to expand its team, scale production at its facility in Salmon Arm, British Columbia, and meet the rising demand for its autonomous robotic systems. These robots are already operational in leading mushroom farms in Canada, Ireland, and Australia, with upcoming deployments in the Netherlands and the United States.
The funding marks a pivotal moment for 4AG Robotics, which, in just two and a half years, has transitioned from a startup proving its product's viability to a scale-up company racing to meet demand. Sean O'Connor, CEO of 4AG Robotics, shared his excitement about the funding: “This funding helps us leap from a startup proving our product works to a scale-up manufacturer trying to keep pace with demand,” O'Connor said. “In just two and a half years, we’ve gone from asking farms to trial our technology to having deposits for over 40 additional robots.”
The funding will also enable 4AG Robotics to expand its customer support team and increase its manufacturing capacity to meet growing global demand. “We’re sold out until February of next year, so this new funding will allow us to expand production and increase a lot of efficiencies in our manufacturing capacity,” O'Connor added.
Mushroom harvesting, a labor-intensive task, often accounts for up to 50% of a farm’s operating costs. 4AG’s autonomous harvesting robots aim to drastically reduce labor costs, improve quality, and increase yield while providing invaluable data that farmers can use to optimize their operations.
Unlike many other crops that have seasonal harvest cycles, mushrooms grow year-round, doubling in size daily. However, knowing when to pick mushrooms is crucial – harvesting too early or too late can result in lower-quality mushrooms or wasted product. This challenge of timing has traditionally required a highly skilled workforce. O'Connor explained: “If I pick a mushroom at four o’clock in the afternoon but the right time to pick that mushroom is four o’clock in the morning the next day, those extra 12 hours could mean 48% more growth, which can turn into 48% more revenue.”
The robotic system developed by 4AG Robotics integrates AI, computer vision, precision suction grippers, and advanced motion control to pick, trim, and pack mushrooms efficiently. 4AG’s system also includes the use of a global map of every mushroom on the bed, created by computer vision every 30-90 minutes, to track each mushroom's growth rate and determine the optimal harvest time.
“We work with the farm: What is the product your customer wants to sell? Are we picking within those parameters?” O'Connor explained. “Then we train the robots using AI to pick in the way the farm wants them to pick.” With each mushroom harvested, the robot collects data on its size and weight, allowing for continuous optimization and improved picking strategies.
“We also have some models on disease detection and contamination detection, which notify farmers if growth rates in parts of the room are abnormal,” O'Connor said. This advanced precision agriculture solution is paving the way for automated farming to address the growing global need for food efficiency and sustainability.
O'Connor also highlighted that automation will play a critical role in the ongoing consolidation of the mushroom industry. Historically, the industry has seen significant consolidation, particularly in Ireland, which had over 1,200 mushroom farms in the 1980s but now operates with fewer than 30. “The next wave of consolidation is going to come through automation,” O'Connor noted.
With its ability to reduce labor costs while boosting productivity, 4AG’s technology offers a competitive advantage for early adopters. O'Connor added, “If you have the advantage of being able to use robots to decrease your costs while increasing your revenue, that will be the next driver of mass consolidation in the mushroom industry.”
The company’s robots are expected to pay for themselves in 18 to 30 months, depending on the cost of labor in a given country. “We sell the robots up front and then have a recurring revenue portion of the business,” O'Connor explained. “The entrance point for these farms is they usually buy eight to 12 robots to start, and then they look to scale from there.”
4AG Robotics is not solely reliant on the U.S. market. When asked about the potential impact of tariffs on Canadian goods entering the U.S., O'Connor emphasized that the company has a broad customer base in multiple countries. While the U.S. is an important market, the company continues to manufacture in Canada and remains committed to working with global clients.
“I don’t want to have to spend hours every day trying to figure out what the future trade between the U.S. and Canada is going to look like,” O'Connor explained. “We’re proud to be neighbors and work with U.S. companies and excited to go live with a farm in the U.S., but we’re not beholden to the U.S.”
As the adoption of autonomous harvesting grows, ongoing support and maintenance will be essential for 4AG Robotics' long-term success. “If a farm is 100% automated, you need to trust that our robots will work,” O'Connor said. “We have service level agreements in place to ensure our customers’ operations continue without disruption.”
Given the high reliance on robots for harvesting, farmers will require strong support to maintain the robots and ensure their systems operate seamlessly. O'Connor stressed the importance of building trust with clients, particularly when it comes to training workers who transition from using manual labor to automation.
While the company remains focused on the mushroom industry for now, O'Connor acknowledged that there is potential to expand the technology into other crops. “There are very few companies in the world that have replaced a human hand picking produce and taking it to the grocery store,” he said. “We’re quite proud to be in that small group of companies, and we think that we have the expertise and ability to look at other crops down the road.”
As the world’s agricultural needs evolve, 4AG Robotics is positioning itself to be at the forefront of the AgTech industry. With ongoing innovation and an eye on expansion, the company is poised to continue its impressive growth trajectory, offering a promising future for automated farming solutions.
