Investment firm Cibus Capital collaborates in a $40 million funding for robot mushroom cultivation
In a significant move for the agricultural technology sector, Canadian robotics company 4AG Robotics has secured a $40M Series B funding round, led by Cibus Capital and Astanor Ventures. This investment will propel 4AG Robotics' mission to revolutionize the global mushroom harvesting industry through the use of artificial intelligence and robotics.
4AG Robotics specializes in fully autonomous mushroom harvesting, aiming to address the labor shortages and high costs that plague the mushroom sector. According to a TechSci Research report, the global mushroom market is projected to grow from $66.4bn last year to over $116bn by 2030. With mushroom farmers worldwide currently spending around $15bn annually on labor costs, the potential for cost savings and efficiency improvements is immense.
Archie Burgess, investment director at Cibus Capital, believes that AI will be transformative for the physical world, especially in agriculture and food. Cibus Capital has previously invested in companies such as ISO Group, EarthOptics, and BeeHero, focusing on robotics, AI-driven machines, soil data measurement, and precision pollination services.
The funding received by 4AG Robotics will be used to grow its manufacturing footprint, expand its field service, and speed up the development of features like punnet packing, disease detection, and AI-driven yield optimisation. Sean O'Connor, CEO of 4AG Robotics, stated that the funding will help the company transition from a startup to a scale-up manufacturer trying to keep pace with demand.
The Series B round was also backed by existing investors InBC, Emmertech, BDC Industrial Innovation Fund, the Jim Richardson Family Office, and Stray Dog Capital, with Voyager Capital joining as a new investor. This investment will enable 4AG Robotics to position itself as a global leader in autonomous mushroom harvesting, leveraging AI and rich imaging data to handle the complexity of real-world mushroom farm environments and improve yields while reducing inputs.
The scaling effort backed by Astanor and Cibus is expected to accelerate adoption of robotic harvesting in mushroom cultivation, which traditionally faces labor challenges due to the delicate nature of mushrooms and the reliance on manual harvesting. This robotics innovation aligns with broader agricultural trends toward automation and smart farming, potentially transforming mushroom agriculture by increasing efficiency, reducing costs, and improving sustainability.
In the words of Burgess, "Mushroom farming presents an enormous opportunity to use robotics and AI to lower labor costs, boost yields, and improve product quality." With the investment from Cibus Capital and Astanor, 4AG Robotics is poised to lead this transformation, making mushroom farming more efficient, sustainable, and cost-effective.
[1] MarketsandMarkets. (2021). Global Mushroom Market - Growth, Trends, COVID-19 Impact, and Forecast (2021-2026). [2] 4AG Robotics. (2021). 4AG Robotics Secures $40 Million Series B Funding to Accelerate Global Adoption of Autonomous Mushroom Harvesting. [3] Grand View Research. (2020). Global Functional Mushroom Market Size, Share & Trends Analysis Report By Product, By Application, By Region And Segment Forecasts, 2020 - 2027. [4] AgFunder News. (2021). 4AG Robotics Raises $40M Series B Funding for Autonomous Mushroom Harvesting. [5] MarketsandMarkets. (2021). Global Mushroom Consumption Market Size, Share & Industry Analysis, By Type, By Application, By Region and Forecast, 2021-2026.
- The investment from Cibus Capital and Astanor in 4AG Robotics, a company specializing in autonomous mushroom harvesting, marks a significant step towards blended finance in the agricultural technology sector, combining private equity and venture capital to fund businesses that promote technology-driven innovation.
- As the global mushroom market is projected to reach over $116bn by 2030, with current labor costs amounting to around $15bn annually, the potential for energy transition in the industry through AI and robotics, as demonstrated by 4AG Robotics, is immense.
- The financing secured by 4AG Robotics will be used to enhance its manufacturing capabilities, expand field services, and speed up the development of features like punnet packing, disease detection, and AI-driven yield optimization, driving further the business of mushroom farming.
- The scaling effort supported by Cibus Capital and Astanor Ventures is expected to boost the adoption of robotics and AI in mushroom cultivation, addressing the labor challenges of the traditional farming methods and aligning with broader agricultural trends towards smart farming and sustainability.
