Investment group Cibus Capital collaborates to fund a $40 million project focused on robotic mushroom cultivation
In a groundbreaking move, specialist investment advisory firm Cibus Capital, along with Astanor, has announced a significant investment in 4AG Robotics, a Canadian manufacturer of agricultural harvesting robotics. This investment marks Cibus Capital's first foray into the realm of harvesting robotics.
4AG Robotics specialises in fully autonomous mushroom harvesting, a field that holds immense potential for the future of agriculture. The company has developed a robot capable of continuously picking and scanning mushroom beds, optimising yields by knowing exactly when each mushroom is ready to be picked.
The funding, totalling $40 million, will help 4AG Robotics transition from a startup to a scale-up manufacturer, aiming to keep pace with the growing demand for their innovative technology. According to Sean O'Connor, CEO of 4AG Robotics, this investment will be instrumental in addressing labour shortages that significantly constrain mushroom production.
Labour costs are a significant burden for mushroom farmers worldwide, accounting for approximately $15 billion annually. Archie Burgess, investment director at Cibus Capital, believes that the funding will enable 4AG Robotics to capitalise on the opportunity to use robotics and artificial intelligence to lower labour costs, boost yields, and improve product quality.
The funding round was also backed by InBC, Emmertech, BDC Industrial Innovation Fund, the Jim Richardson Family Office, Stray Dog Capital, and Voyager Capital. With this investment, Cibus Capital has made its first investment in harvesting robotics with 4AG Robotics.
The global mushroom market is projected to grow substantially by 2030, potentially exceeding $116 billion, according to recent estimates. The automation technology offered by 4AG Robotics is expected to play a crucial role in meeting this demand, offering continuous operation, precise picking based on mushroom size, and reduced labour costs.
In addition to growing its manufacturing footprint and expanding its field service, 4AG Robotics plans to use the funding to speed up the development of features like punnet packing, disease detection, and AI-driven yield optimisation. These advancements are set to revolutionise the mushroom farming industry, making it more efficient, cost-effective, and competitive.
Sources:
[1] TechSci Research. (2021). Global Mushroom Market to Reach $116.46 Billion by 2030. Retrieved from https://www.prnewswire.com/news-releases/global-mushroom-market-to-reach-116-46-billion-by-2030-301306638.html
[2] Mordor Intelligence. (2021). Global Mushroom Market - Growth, Trends, and Forecast (2021 - 2026). Retrieved from https://www.mordorintelligence.com/industry-reports/mushroom-market
[4] Grand View Research. (2021). Global Mushroom Market Size, Share & Trends Analysis Report By Type (Button, Oyster, Shiitake, Others), By Region, And Segment Forecasts, 2021 - 2028. Retrieved from https://www.grandviewresearch.com/industry-analysis/mushroom-market
Blended finance, such as venture capital and private equity, could play a significant role in the energy transition, as investments in innovative companies like 4AG Robotics, which specializes in harvesting robotics, can drive the adoption of automation technologies and aid in the reduction of labour costs, contributing to a more cost-effective and efficient mushroom farming industry. Sports, though not directly mentioned in this context, could potentially benefit from the advancements in robotics and AI, as mushroom farms become more automated, freeing up labour for other tasks, which could potentially include sports-related activities.
