Information on the Target

Connecterra, based in Amsterdam, is at the forefront of transforming the dairy industry through advanced Artificial Intelligence solutions. The company's mission is to empower farmers of all sizes by increasing productivity while minimizing farming's environmental footprint. Utilizing a predictive intelligence platform that leverages machine learning, Connecterra provides actionable insights to farmers and industry stakeholders, enhancing overall farm and value chain efficiency. With operations across 16 countries, Connecterra aims to innovate sustainable farming practices and support smallholder farmers.

Industry Overview in the Target's Specific Country

The dairy industry in Europe grapples with significant challenges, including high greenhouse gas emissions, excessive antibiotic use, and concerns surrounding animal welfare. Approximately 450 million smallholder farmers in developing nations rely heavily on livestock for their livelihoods, underscoring the urgent need for sustainable practices. The Food and Agriculture Organization (FAO) and the EAT-Lancet Commission advocate for dairy's role in human diets, emphasizing the need for advancements that reconcile health and sustainability.

Research indicates that despite the industry's struggles, there is potential for improvement through innovative solutions. Connecterra's technology aims to address these challenges by promoting efficiency in farming operations and sustainability in food production. Large companies within the agricultural sphere are increasingly adopting such solutions, marking a shift towards better practices in dairy management.

As these large players integrate newer technologies, we foresee a substantial transformation that can benefit both the environment and the livelihoods of farmers. Collaborative efforts in research, like those with Wageningen University & Research, have demonstrated the positive impact of AI on productivity and health management in dairy farming, creating a road map for industry-wide change.

The Rationale Behind the Deal

Pymwymic has partnered with Kersia and ADM Capital to invest €7.8 million in Connecterra's latest Series B funding round, which is noted as the largest ever for a European livestock tech company. This significant investment is intended to bolster Connecterra's presence in key dairy markets including Europe, North America, and New Zealand, promoting the adoption of their innovative technologies.

This infusion of capital will enable Connecterra to enhance its offerings, further develop its impact on sustainable farming, and support smallholder farmers globally. This strategic investment aligns with Pymwymic's mission to redesign food systems that are both healthy and sustainable.

Information About the Investor

Pymwymic, founded in 1994, is dedicated to impact investing and is composed of a community of over 150 European wealth holders, including individuals, families, entrepreneurs, and angel investors. The organization takes a leadership role in transitioning towards investments that prioritize social and environmental responsibility.

The Pymwymic Healthy Ecosystems Impact Fund focuses on companies that aim to conserve and restore ecosystems while promoting sustainable food production. This long-standing commitment to impact investing positions Pymwymic as a credible and influential player in the field, evolving the standards for responsible investments.

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The investment in Connecterra represents a significant opportunity for Pymwymic to contribute to the sustainable transformation of the dairy industry. As the demand for more ethical and environmentally friendly farming practices escalates, companies like Connecterra that harness AI technology for innovative solutions are well-positioned to lead this charge. By aligning with industry leaders such as Danone and Bayer, Connecterra showcases the credibility and effectiveness of its technology.

Furthermore, the focus on empowering smallholder farmers in developing countries not only reinforces social equity but also aligns with global sustainability goals. This dual emphasis on productivity and environmental stewardship is crucial in today’s agricultural landscape.

In light of current industry trends, this investment is likely to yield positive returns, as the need for sustainable practices becomes increasingly urgent. Overall, Pymwymic’s strategic involvement in Connecterra is a commendable step towards redefining food systems for a sustainable future.

In conclusion, Pymwymic's investment in Connecterra could indeed prove to be a savvy decision that aligns financial incentives with positive environmental and social impacts, paving the way for a healthier and more sustainable dairy ecosystem.

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