Government-backed VC investment starts to flow into Qld

Venture Mandalay Partners is the first company to begin raising funds from the Queensland Government’s Venture Capital Development Fund, unveiling deals with two local AgTech startups on Tuesday.

A specialist agri-food technology investor is using state funding to support Nbryo’s bovine embryo transfer technology and Naturo’s innovative milk processing solution that can extend shelf life from weeks to months.

Mandalay is a seed Series A investor, which typically issues first checks in the range of $150,000 to $1.2 million. The exact value of the latest investments was not disclosed, but it is believed to be on the higher end of the scale.

Mandalay was one of the first five VC firms to receive $130 million in funding from the Queensland Investment Corporation’s (QIC) Foreign Capital Development Fund earlier this year.

The program provides up to $20 million in funding to 10 specialized venture capital firms, with the condition that 1.25 times the VCDF funding be invested in local startups.

Mandalay Ventures Managing Partner Mark Gustowski said the firm was delighted to support Nbryo and Naturo with the first tranche of QVCDF funding, given that less than two per cent of Australian investment capital is invested in agritech startups.

“QIC’s investment in Mandalay, alongside the NRMA and the family office suite, sends a signal to the market that the (AgriTech) sector remains a priority for Australia,” Gustowski said.

Nbryo’s technology enables the mass production of cow embryos, speeding up the selective breeding process for livestock producers and reducing the time it takes to complete the process from seven years to about seven days.

While embryo transfer technology already exists, Nbryo CEO Gerard Davis said their in vitro bovine embryo production solution makes it easier for farmers to use advanced breeding techniques.

“Embryo transfer technology has long been an effective tool to accelerate genetic improvement in farm animals, but its high cost and complexity have limited its use to a small segment of the industry,” Davis said.

Herron Pharmaceuticals was co-founded by Euan Murdoch and Nick Cameron and has raised over $20 million in funding with support from the Bill & Melinda Gates Foundation and Meat and Livestock Australia.

Meanwhile, Naturo’s non-thermal milk processing method, known as Haelen, can improve milk digestibility and extend shelf life from around 14 days using traditional pasteurisation techniques to 60 days.

“Our process is a direct response to growing consumer desires for natural, health-enhancing products that don’t compromise on taste or quality,” said Naturo founder and CEO Jeff Hastings.

“This innovation represents a leap forward in the field of functional nutrition, bringing unparalleled benefits to both processors and consumers worldwide.”

Do you know more? Contact James Riley by email.