Prairie Crest Capital, a venture capital firm focused on early to mid-stage investments in breakthrough agriculture and technology firms, has launched in Des Moines, Iowa.
Principals Barry Adams and Mark White formed Prairie Crest Capital to address the underserved investment opportunities in the agriculture and technology sectors, particularly in the Midwest.
While agriculture and downstream products (such as food) account for nearly 8 per cent of the US GDP, it only amounts to less than 3 per cent of venture capital investments on average over the past three years.
Prairie Crest anticipates investment activity in the agriculture technology space to grow from USD1.2 billion to approximately USD7 billion over the next several years.
“Although the Midwest has approximately 20 percent of the population, research and development spending, top research universities, and entrepreneurial talent, our region receives less than 5 per cent of venture capital investment,” says White. “Also, the rise of new and adaptive agriculture technologies such as precision agriculture and predictive software indicate a growing and underfunded pipeline of solutions in ag tech. With the demand for food and sustainable energy growing and access to arable land and water availability diminishing, it makes for a compelling, dynamic sector, rife with transformational possibilities.”
The partners have spent over a year developing the firm, refining their investment thesis, identifying promising new ventures, and formalising their network of investment partners and technology affiliates.
“For Midwest entrepreneurs, location may be an obstacle when seeking not only investment opportunities, but access to feedback networks, later stage capital, technology infrastructure and global marketing contacts,” says Adams. “Our aim is to turn those disadvantages into an advantage by helping them connect the dots and leverage our Midwest location to identify and nurture those breakthrough companies.”
