Why We Invested: Olombria

by Jonathan Hua, THRIVE Accelerator Manager
This post originally appeared on Medium.com.

 

I love to eat. I consume blueberries, strawberries, and almonds like moviegoers consume popcorn: mindlessly and in giant handfuls. When I started investing in the agrifood tech sector through SVG Ventures-THRIVE, my primary goal was to invest in an industry that is both supporting the sustainability of our natural ecosystem and helping to improve our food production capabilities to help feed a burgeoning population. This is why I was so excited when I met the co-founding trio behind Olombria — Tashia, Louis and Greg.

The Challenge

Food production can be impacted by several factors, including climate change, and the availability of key resources like water, energy, labor and arable land. However, one key catalyst to food production that is often overlooked is pollination. Without the assistance of pollinators, most plants cannot produce fruits and seeds. According to the FAO, we know that, of all crops across the globe producing fruits or seeds for human consumption, roughly 75% depend, at least in part, on pollinators such as honey bees. In addition, pollinators affect 35% of global arable land, supporting the production of nearly 90 of the world’s leading food crops. But wild pollinators are under threat —according to the USDA, bee populations have been steadily declining for years now due to Varroa mite infestations, habitat loss, pesticides, weather and disease. In the USA, there has been an 18% reduction in honeybee hives since 1990. Hive prices have skyrocketed, with growers spending $400 million to pollinate almond trees each year in California alone, and an estimated nearly $3 billion spent across all crops in the USA each year. If this alarming trend continues, we are facing a loss or severe yield decrease of several critical fruits and crops we currently take for granted. Can you imagine a world where we have limited access to coffee, cocoa, or strawberries? The horde of dessert aficionados and coffee addicts would revolt! So the key here is either to help re-boost the honey bee population or to find an alternative pollination source.

The Solution

And this is where Olombria comes in. Olombria uses hoverflies (and is currently experimenting with other fly variations) as supplementary pollinators to bees in agrarian settings. Flies already do about 1/3 of the world’s pollination, but they are still underutilized and the Olombria technology substantially increases their effectiveness. Their solution involves a mesh network of machine learning nodes with insect recognition and chemical signal release capabilities that are connected to sprayer devices that release natural volatiles and carefully curated chemicals into a field to attract and manage the behavior of flies to aid in the pollination process. They are also testing a computer vision device that can provide farmers and growers with actionable insights on insect assemblage, pollinator availability/areas of deficit, pollinator effectiveness, pollinator health, as well as environmental data (to track conditions affecting the chemical dispersion process). The solution is comprehensive, quite innovative in its approach and tackles a significant problem in the food production process.

Why Is This Important?

Believe it or not, insect pollination contributes an estimated $175 billion globally through increased productivity in agriculture each year. Olombria is tackling a large primary market that has high impact potential through a diversity of crop types across fruits, berries and nuts. Looking at the economics, increasing crop yield through fly pollinator efficiency by a conservative estimate of only 2% is worth upwards of $100 million per year in value to almond farmers, with the potential to increase crop yields by ~4% or more, which increases grower value to an additional $200 million per year. This increase not only provides a significant return on a grower’s investment through more optimized crop production numbers, but also helps to create a sustainable pollination system into the future that takes the risk out of pollinating in irregular bloom seasons. On top of that, there is the potential to save farmers millions of dollars on beehive rentals and maintenance.

Olombria Is Still Very Early-Stage — What Gives THRIVE Confidence That They Will Succeed?

  1. Tashia, Louis and Greg are impressive in their own right — they studied together at the Royal College of Art (RCA) and built Olombria out of RCA’s 2017 Biodesign Challenge. Within a year of starting the business, they closed a pre-seed funding round with multiple investors and have ongoing trials and partnerships with over a dozen of the UK’s key growers and agricultural organizations. In the process, they have also built up an impressive team of scientists and researchers including the world’s leading behavioral entomologists, chemical ecologists, fly experts and pollination biology experts.
  2. Despite the fact that almonds and berries have relatively short bloom seasons, they are high-value crops with a huge TAM potential. Olombria is targeting all crops that require pollination.
  3. Olombria’s business model is accessible to farmers of all sizes and involves a low-cost subscription service for both the IoT nodes and data aggregation. Despite the low cost to farmers, the profit margins for Olombria are still respectably high.
  4. Olombria has very few competitors in the space — in fact, it is a stretch to even consider beekeepers to be competitors, despite bees being the biggest competitor to hoverflies in pollination. They are, in fact, supplementary to each other in the field and do not have any negative effects on the pollinating capabilities of the other group. In addition, utilizing beekeeping services means purchasing costly hives and labor-intensive maintenance to go along with it. If the bee population continues to dwindle, flies will have to come to the rescue. Walmart also created some buzz (pun intended) recently for patenting autonomous robot bees. While intriguing, this solution has not yet proven to be as effective as natural bees or flies, is difficult to implement and has high upfront Cap Ex considerations. But the advent of robotic pollination helps Olombria by further validating the market need for a pollination alternative to bees.
  5. Olombria is future-proofing their technology. Vertical farming is a sector of agriculture that has been growing at a phenomenal rate over the past few years. As urban populations continue to proliferate, high-tech and vertically integrated farming solutions will become more highly sought-after. With next-gen farming companies like Bowery Farming, Plenty, BrightFarms and AeroFarms raising mega financing rounds of upwards of $100 million+, it is clear to see that indoor farming is the next frontier of agriculture. With that said, many fruits and plants grown indoors also require pollination. Right now, this is being done using a combination of robotic bees (expensive), hand pollination (low precision) and artificial wind pollination (costly and space-prohibitive). These are band-aid fixes but are not sustainable solutions in the long-term. Due to the closed environment of indoor farms, honeybees are not a viable pollinating solution. This leaves a relatively wide-open opportunity for Olombria to utilize the versatility of flies to create the next generation of pollinators for indoor use.

I’m excited about what Olombria has built so far, and keen to see them successfully launch their product into market. I love investing in sharp founders with low egos and copious amounts of confidence in executing on their vision. We are so impressed with how polished the team is and how well they work together. To sum it up: the Olombria team is “pretty fly”.

SVG Ventures Announces its THRIVE V Seed Accelerator Cohort

 

 

April 4, 2019— Los Gatos, CA– The SVG Ventures-THRIVE AgTech platform announced today the nine startup finalists that comprise its 5th annual seed accelerator cohort.

Following 6 months of rigorous research and analysis these nine companies were selected from a global applicant pool of 275 companies across 67 countries. SVG Ventures-THRIVE will invest $100k in each company bringing their total investment portfolio to 39 companies and making them one of the most active AgTech investors in the sector.  Additionally SVG recently held a THRIVE-X Challenge at SXSW and invested $100k in the winning company, Agshift, and has also made a follow up investment in Microgen, one of its THRIVE III cohort companies.

The cohort’s technology categories range from big data & analytics (The Bee Corp, FarmX, Intelliconn, Wellntel, Livestock Water Recycling), to robotics (Tensorfield Technologies), next gen farms (Alesca Life Technologies), and biotechnology (Olombria, ProteoSense), and address key agriculture and food challenges such as food safety/security, labor shortages and resource constraint/environmental concerns.

The nine startups will participate in the SVG Ventures-THRIVE Accelerator Program, a four month program which kicked off in February and culminates at the Forbes-THRIVE Demo Day during the Forbes AgTech Summit on June 26 in Salinas, California. Over the course of the intensive accelerator program, companies will be provided live and virtual coaching covering topics such as go-to-market strategy, supply chain, field deployment, fundraising and global expansion. The accelerator program  emphasizes critical industry relationships and market traction by providing top tier agriculture, business and technology mentorship and connecting startups with THRIVE’s corporate innovation partners.

“Each year, we are truly impressed with the caliber of our startup teams and the quality of their technology solutions and this year is no exception,” said John Hartnett, founder and CEO of SVG Ventures-THRIVE. “We look forward to helping our THRIVE V startups succeed and scale their solutions for real impact in the food and agriculture industries over the course of the next few months.”

Register now for the Forbes-THRIVE Demo Day.

 

Introducing the THRIVE V Cohort- 2019

 

Creates next-gen urban farming solutions (i.e. in shipping containers) using advanced software technology.

Leadership: Tsuyoshi Stuart Oda, CEO

Location: China

Alesca Life is an agricultural technology company that builds weatherproof, cloud-connected farms to enable local food production by anyone anywhere. The startup was founded in August 2013, and over the past 5 years has developed hardware, IoT and IT products to modernize the agricultural industry and dramatically improve productivity, consistency, and efficiency.

 

Predictive data analytics and infrared technology for beehives to monitor hive-health.

Location: Bloomington, IN

Leadership: Ellie Symes, CEO

The Bee Corp’s product, Verifli applies data analytics to beehives to help growers ensure effective pollination through infrared inspection technology. The Bee Corp increases yield for farmers by monitoring the number, health and distribution of pollinating bees. Since launching the product February 2019, The Bee Corp has inspected over 6,700 beehives.

 

 

Precise irrigation optimization from a comprehensive sensor package.

Leadership: Tushar Dave, CEO

Location: Berkeley, CA

FarmX uniquely provides farmers with a complete monitoring and analysis solution that improves productivity immediately. FarmX scales quickly and appeals to all types of farmers with its analytics-service model. FarmX differentiates in its full-spectrum analytics offering which combine PCA, irrigation management, crop advisory services and adverse conditions monitoring into one simple solution.

 

Leading edge solutions for grain quality and quantity data acquisition, management, connectivity & remote monitoring.

Leadership: Ken Jackson, CEO

Location: Saskatoon, SK, Canada

Intelliconn manufactures and sells leading edge solutions for grain quality and quantity data acquisition and management as well as farm connectivity and remote monitoring and control solutions.

 

Creating value for  food producers by reducing the expense and impact of waste liquids.

Leadership: Karen Schuett, CEO

Location: Calgary, Alberta Canada

The LWR System is the only proven commercialized technology that reduces the overall volume of manure, concentrates nutrients into a valuable solid fertilizer, a crop additive liquid fertilizer, and delivers a renewable, high-quality water source.

 

Insect pollination solution that curates fly behavior to increase pollination and ensure greater crop yields.

Leadership: Tashia Tucker, CEO

Location: London, UK

Olombria uses specific species of flies to supplement bees as primary pollinators. Flies already do about 30% of the world’s pollination, but the Olombria technology substantially increases their effectiveness. They use advanced, natural chemical signaling and mapping technologies to choreograph their behavior, placing them just where the crops need them to be.

 

Solid-state biosensor technology for food safety testing.

Leadership: Mark Brynes, CEO

Location: Columbus, OH

ProteoSense LLC is commercializing RapidScan™, a solid-state biosensor technology for food stafety testing. ProteoSense’s high-sensitivity field portable system detects foodborne pathogens without incubation, reducing total test time from days to minutes – a 10x improvement over existing tests. Partnering with Taylor Farms, a leading producer of fresh-cut vegetables, ProteoSense is developing tests for Salmonella, Campylobacter, E. coli, and Listeria – the primary foodborne pathogens – that can be administered on-site by non-technical personnel.

 

 

Collaborative robots that perform non-invasive, no-herbicide weeding using thermal micro-dosing techniques.

Leadership: Xiong Chang, CEO

Location: San Jose / Salinas Valley

Tensorfield Agriculture is building the next generation of agricultural machines, initially to address three primary concerns of growers worldwide: the cost and availability of labor, the threat of herbicide resistance and the anticipated legislative burdens around using existing herbicides. The science is clear: the only way to mitigate the threat of herbicide resistance is to reduce or end our reliance on them, with the only viable alternative being the development and commercialization of new strategies for weed control. They leverage our deep manufacturing ties in Shenzhen, China to iterate fast and produce robots that can scale to multiple geographies and crop types: robots that they believe are the future of maintaining our ongoing supply of safe, sustainable fresh food.

 

  

Wellntel’s groundwater monitoring technology and insight  make groundwater visible and manageable.

Leadership: Marian Singer, CEO

Location: Morro Bay, CA and Milwaukee, WI

Wellntel is a groundwater-level monitoring technology and information system company. They sell sensor equipment, field services and cloud-based data services to turn irrigation wells into real-time groundwater supply monitoring points. With Wellntel, farmers and growers get the groundwater supply and seasonal trend data they need to inform operational plans, measure progress and sustainably manage their resource.

 

 

About SVG Ventures-THRIVE

SVG-THRIVE is the leading agri-food innovation ecosystem, comprised of top agriculture, food & technology corporations, universities and investors. With a community of over 1,500 startups from 67 countries, the THRIVE platform invests, accelerates and creates unparalleled access for entrepreneurs to scale globally. SVG Ventures-THRIVE is based in Silicon Valley, California.

www.svgpartners.com www.thriveagtech.com