Brazilian Agrifoodtech Investor SP Ventures Raises $22 Million for AGVIII Fund
Brazilian agrifoodtech investor SP Ventures has successfully secured a $22 million first close for its third fund, AGVIII. The fund is dedicated to investing in startups that are focused on improving the environmental footprint of food production and distribution.
Key areas of focus for AGVIII include bio-based crop protections, agrifintech, supply chain sectors, and education. SP Ventures has set a target of $80 million for the total fund size.
Challenges in Fundraising
According to SP Ventures managing partner Francisco Jardim, raising a third fund comes with intense scrutiny. The process for AGVIII was particularly challenging due to the tough fundraising environment. The firm’s biggest first close attracted investments from high-profile agribusiness leaders like AGCO, FMC Corporation, and BASF Venture Capital.
The average check sizes for the third fund will range between $1 million and $2 million, with a focus on deploying 40% of the fund for entry-level checks and reserving 60% for follow-on investments in portfolio companies.
Investment Focus and Opportunities
SP Ventures has historically invested in biologicals and agrifintech, two key areas of opportunity in Latin America. The region’s swift regulatory framework in Brazil has made it a global leader in deploying agricultural solutions. Latin America’s millions of smallholder farmers also present a significant need for improved financial services, driving agrifintech innovations.
The firm plans to continue investing in biologicals, agrifintech, and explore new opportunities in AI, traceability, logistics, and environmental assets like water and biodiversity. Education in agriculture is also a critical focus area for SP Ventures, with investments in platforms like AgroAdvance aiming to bridge the knowledge gap in the sector.
With COP 30 scheduled to be held in Belém, Brazil in 2025, SP Ventures sees a growing emphasis on environmental sustainability and climate finance within the agriculture sector.
Overall, SP Ventures aims to complete a second close of around $40 million by the end of Q1 2025 and a final close near $80 million later in the year.
