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Des Moines-based Crop Pro Insurance announces $8 million funding round

Crop Pro Insurance

August 8, 2017

On Tuesday Des Moines-based Crop Pro Insurance announced the close of an $8 million round of Series A financing, according to a news release on its website.

The round was co-led by Finistere Ventures and Seed 2 Growth ventures (S2G) along with GuideOne Insurance joining the round, according to the release.

Series A funding is useful in optimizing product and user base.

According to the release, Crop Pro will use the investment to expand its team and speed the development of products and services that bridge the gap between agricultural and financial technologies.

Crop Pro will offer risk management solutions for emerging and traditional agriculture markets for the 2018 crop season.

“Our vision is to help growers minimize risk by delivering proven insurance offerings and new risk management tools through our longstanding network of independent insurance agents,” Crop Pro Chairman Billy Rose said in the release. “As agriculture continues to evolve, we want to empower farmers to use the current wave of advanced technologies to solve longstanding productivity challenges while helping them manage the financial risk.”

Crop Pro is a Managing General Agent (MGA) platform specializing in Federal and private crop insurance. Crop Pro currently operates in Midwest states through a network of independent agents.

Crop Pro today also announced that it is the first Ag venture-funded insurance provider to earn approval from the United States Department of Agriculture (USDA) to offer Federal crop insurance products to farmers.

Des Moines-based Crop Pro Insurance announces $8 million funding round | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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