Target Information

We are pleased to announce our investment in DataFarming, an innovative farm data software company that has successfully secured nearly 40% of the Australian farming market within just four years. DataFarming was founded by Tim and Peta Neale, who recognized the inefficiencies in how technology companies engage with farmers after their previous success in precision agriculture. Their insights led to the development of a comprehensive product suite that encompasses the entire crop life cycle through their web-based application, The Digital Agronomist.

The Digital Agronomist leverages machine learning and spatial data to offer actionable insights to agronomy service providers and farmers. The platform provides critical functionalities such as real-time crop health assessments, long-term productivity zoning, yield analysis, soil mapping, and variable rate prescriptions. This robust tool empowers farmers and agronomists to make informed decisions swiftly, leveraging an expanding range of features designed to solidify its position as a leading solution within the agriculture sector throughout various stages of cropping and pasture management.

Industry Overview in Australia

The agricultural sector in Australia is pivotal to the national economy, facing both challenges and opportunities in the wake of climate change. Agriculture accounts for approximately 24% of human-generated greenhouse gas emissions, yet it is also significantly affected by climate variability, with projections indicating a 17% decrease in global agricultural productivity by 2050. This intersection of agriculture and climate change necessitates innovative approaches such as precision agriculture to optimize productivity and sustainability.

Precision agriculture plays a critical role in ensuring that crops and soil receive the necessary inputs for optimal health and productivity. According to the World Economic Forum, a 15-25% adoption rate of precision agriculture across global farms could potentially result in a 10-15% increase in yields by 2030. Additionally, this shift could lead to substantial reductions in greenhouse gas emissions and water usage, making precision agriculture not only an efficient practice but also an environmentally responsible choice.

DataFarming’s offerings comprise advanced tools that utilize processed satellite imagery to significantly enhance farming productivity, lower input costs, and minimize environmental impacts. Their product suite includes capabilities for real-time satellite imaging, nutrient application management, and sustainability reporting, which collectively support farmers in making data-driven decisions.

With a fundamental focus on integrating technology into farming practices, DataFarming’s freemium model has accelerated user adoption, enabling quick onboarding for farmers while providing immediate value. This strategic approach has allowed DataFarming to acquire a substantial number of users, nearly 40% of Australian farms, primarily through organic growth and peer recommendations, underscoring the quality of their platform.

Rationale Behind the Deal

The rationale for investing in DataFarming is underscored by its unique market positioning and the growing need for innovative agricultural technology solutions. The investment aligns with our commitment to facilitate advancements in agriculture that contribute to increased productivity and sustainability. DataFarming's impressive user acquisition and retention rates, alongside the potential for further growth, make it a compelling opportunity within the ag-tech landscape.

Moreover, the founders' extensive experience and established brand equity within the agricultural sector provide additional confidence in DataFarming's future trajectory. Their pragmatic business approach resonates well with their customer base, enhancing the likelihood of continued success.

Information About the Investor

The Investible Climate Tech Fund is dedicated to investing in companies that contribute to sustainable development and climate resilience. With a focus on innovative technologies and solutions in various sectors, the Fund aims to support businesses that are at the forefront of addressing pressing environmental challenges. Our investment philosophy is rooted in identifying companies with distinctive competitive advantages and sustainable business models that can yield significant returns while promoting environmental stewardship.

We view investments as a means to drive positive change while generating economic value. The decision to invest in DataFarming reflects our confidence in the agricultural sector's evolution towards technology-driven solutions that enhance operational efficiency and mitigate environmental impact.

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The assessment of DataFarming as a prospective investment opportunity reveals a promising landscape for growth and innovation. The company has demonstrated impressive traction in acquiring and converting users, significantly bolstered by its effective product design and go-to-market strategy. DataFarming's focus on precision agriculture not only addresses current market needs but also presents a scalable model that could expand into other regions and markets.

Additionally, the founders' reputation and deep-rooted connections within the Australian farming community present a strategic advantage that can facilitate future growth. As they continue to innovate and enhance their product offerings, they are likely to cement their status as a leader in the ag-tech industry.

Furthermore, the introduction of supplementary revenue streams, such as the Agri Intelligence tool, showcases DataFarming's proactive approach to identifying market needs. This adaptability positions them well for success and enhances their potential to serve as a platform for other ag-tech businesses, thereby broadening their revenue base.

Overall, the investment in DataFarming represents a strategic opportunity to participate in the ongoing digital transformation of agriculture. Given the increasing emphasis on sustainable farming practices and technological integration, this investment is expected to yield positive returns while contributing to the sustainability of the agriculture sector.

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