457: How to Raise a 3rd AgTech Investment Fund in a Down Market

Why It Matters

The fund’s raise demonstrates growing confidence in ag‑tech as a durable, high‑impact investment class, encouraging more capital to flow into solutions that address food security and climate challenges.

Key Takeaways

• SP Ventures closed $50M first close on third AgTech fund.
• Brazil’s agriculture delivers 3% annual productivity, driving fund thesis.
• Long farming technology adoption cycles challenge VC exit timelines.
• Fund raised despite low DPI, proving investor confidence in agtech.
• Climate, geopolitics, and tech intersect, creating new agri‑innovation opportunities.

Summary

The episode focuses on SP Ventures’ successful launch of its third ag‑technology fund amid a sluggish market. Co‑founder Francisco discusses how the firm secured a $50 million first close and aims to raise up to $100 million, highlighting the unique challenges of raising capital when earlier funds have not yet returned capital to investors. Key insights include Brazil’s dominant role in global agriculture—producing roughly 25% of its GDP and delivering a steady 3% annual productivity growth over five decades. Francisco notes that the sector’s long technology adoption cycles, high working‑capital needs, and commodity‑driven cash flows depress DPI metrics, yet the fund’s TVPI remains strong, underscoring the structural upside of ag‑tech. Francisco’s optimism is evident when he says he’s “never been more excited,” citing Brazil’s massive export footprint—80% of its agricultural output reaches over 180 countries—and the robust research ecosystem at institutions like EMBRAPA. He also stresses that climate, geopolitics, and digital innovation are converging to create fresh investment opportunities. The discussion signals that, despite traditional VC timing pressures, ag‑tech can attract capital when investors recognize its resilience and long‑term growth potential. SP Ventures’ ability to raise a third fund without prior exits suggests a broader shift toward patient capital in sectors critical to food security and climate adaptation.

Original Description

Tim (https://www.linkedin.com/in/timnuss/) and Tyler (https://www.linkedin.com/in/tyler-nuss/) talk to Francisco Jardim (https://www.linkedin.com/in/franciscojardim/) about his journey as the MD at SP Ventures and how they have successfully raised for a 3rd fund investing in agtech.

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This episode is presented by Ambrook (https://ambrook.com) .

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Links

• SP Ventures - https://spventures.com.br