Japan’s Kagome cooperates with SVG Ventures as part of an agtech fund worth $50 million

Silicon Valley-based venture capital firm SVG Ventures has entered into a strategic partnership with Japanese food company Kagome to launch a $50 million agtech fund.

Kagome will participate in the venture through its US subsidiary Garbic USA with a 10-year fund called SVG Ventures Sunrise Fund.

The fund will work with startups that are “pioneering innovative agricultural technologies around the world,” the companies said in a joint statement, and will focus on early-stage investments, with a typical check size of $0.5 million to $1 million. The fund may also make follow-on investments.

Kagome, a Japanese company that dates back to 1899 and is particularly known for its tomato-based products, said its current U.S. operations, including Ingomar Packing Company and United Genetics Seed Company, will play a “key role” through validation and implementation of some technological solutions in which the fund invests.

Hiroyuki Ueda of Kagome Global Agri Research & Business Center said in a statement that the agri-food industry has recently faced difficult times and that there is an “imbalance between agri-environment and technology” that the fund will seek to address.

“History has shown that innovation often arises during periods of imbalance. We believe that innovation is the key to overcoming the significant challenges facing global agriculture today,” he said.

“Our partnership with SVG Ventures and the establishment of the Sunrise Agri Venture Fund is a testament to our commitment to developing sustainable solutions that will not only strengthen our business, but also benefit the broader agricultural community and its stakeholders. By investing in and working with forward-thinking start-ups, we are taking proactive steps to address the impacts of climate change and ensure the future resilience of food systems around the world

John Hartnett, founder and CEO of SVG Ventures, added in a statement: “By leveraging Kagome’s rich history and expertise, as well as our experience in accelerating and investing in agri-food technologies, we are confident that this collaboration will empower the next generation of startups to create sustainable solutions that will transform the agricultural value chain. Together we are not just investing in technology, but in the future of food and agriculture around the world.”