Growers Edge announced last week that it has raised a $5 million venture debt facility through California-based Silicon Valley Bank.
Based in Johnston, Iowa, Growers Edge has pulled together a range of fintech and analytics tools. The system combines data from local growers, agtech vendors, and insurance partners including financial data; agtech field data; grower history; and lending data. That mashup of information is then pushed through the Growers Edge platform to help identify profit opportunities for ag retailers and farmers.
The company plans to use the funding to continue to build its tech stack and bring in sales, development, and data analytics talent.
Growers Edge currently has more than 30 full-time employees and plans to be approaching 50 full-time employees by the end of 2021, Growers Edge CEO Dan Cosgrove told Clay & Milk. The company is currently hiring for multiple positions including a Data Scientist and an Actuarial Data Scientist.
“Anytime you get an investment from a more traditional venture firm, they expect a lot of return and they take a significant amount of equity for that investment,” said Cosgrove. “This venture debt has some equity associated with it but primarily is a loan. So it allows us to grow quickly without further diluting our equity or our cap table.”
The announcement comes less than one year after Growers Edge completed a $40 million Series B round in July 2020.
“We are positioning Growers Edge more and more to be a fintech company so this partnership with Silicon Valley Bank opens up a lot of opportunities for us,” said Cosgrove.
Growers Edge Closes $40 Million Series B round -July 9, 2020
Middle Bit: Growers Edge wins Agtech Finance Solution of the Year award -Sept. 11, 2020