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Agtech Funding News

Tractor Zoom raises $1.5 million

July 16, 2019

Tractor Zoom, an online marketplace that connects farm equipment auctioneers and buyers, has completed a $1.5 million investment round.

Innova Memphis and Ag Startup Engine participated in the round, with rest of the round consisting of undisclosed investors.

“We’ve seen tremendous growth and have had a lot of amazing auction companies sign on to generate awareness for their farm equipment auctions,” said Kyle McMahon, CEO and founder of Tractor Zoom. “We look forward to continue growing Tractor Zoom and hiring key individuals to help carry out our day-to-day sales, marketing and software development.”

Tractor Zoom plans to use the investment to continue to scale their company and expand geographically.

“We have 266 auction companies using Tractor Zoom as of today,” said McMahon. “That number has grown significantly. This time last year, that number was somewhere around 70.”

Tractor Zoom last raised $1 million in a seed investment round in September of 2018. Innova Memphis and Ag Startup Engine both participated in that round and came back to participate in this recent round.

Previous coverage

Tractor Zoom completes $1 million seed investment round -Sept. 4, 2018

Tractor Zoom receives $25,000 investment from Ag Startup Engine -July 31, 2018

Tractor Zoom: An app to hear about farm equipment sales and auctions -Nov. 27, 2017

Tags: tractor zoom

Tractor Zoom raises $1.5 million | 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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