By: Mikayla Mooney
Part 1: (a multi-part series on Ag Startup Engine)
On the surface, Venture Capital is an industry driven by transactions. Funds exchange capital for anticipated returns, investors invest for ownership in startups, and founders offer products or services to address customer needs.
But what I’ve realized over the last few months of being on the inside of Ag Startup Engine, is that we don’t operate with this conventional transactional approach. Instead, our operations are guided by the power of relationships, shaping every decision and action we take.
Here is what drive our approach:
Our investors
Each investor within Ag Startup Engine was hand picked. We've assembled a group of individuals who deeply understand agriculture and scaling companies. They have lived experiences they bring to the table. Our investor base spans farmers, producers, seasoned founders, and industry veterans across various food and ag industries.
For every investor, being a part of ASE is more than a financial transaction. They want to learn about new technology addressing critical challenges in agriculture, pay it forward to the next generation of founders, and be part of the broader community we’re building. This mindset allows for ASE to be patient capital, which is crucial for early stage investing (and in agriculture!). But more importantly, it has created a network of investors who are willing to roll up their sleeves and serve as mentors, early customers, or strategic partners - driving growth and enterprise value for the companies we invest in.
While financial returns are critical (and we've already celebrated some early wins), our focus on investors who want to support founders and foster viable solutions has yielded far greater returns than a purely transactional approach ever could.
At Ag Startup Engine, our investors are more than just a capital transaction for anticipated returns.
Part 2:
Part two of what I’ve learned while being on the inside of Ag Startup Engine.
2. Our founders
First and foremost, our team is operated by founders (or former founders). None of us got an MBA or spent years working at an investment bank. The way we approach investing comes from the founder side of the table. As early stage investors (pre-seed and seed) we rely heavily on what we learned as founders and mistakes we made along the way to inform our investment decisions.
At the early stage, we look at 2 things: the founding team and market opportunity. Fundamentally we look for founders who emulate the traits we believe will drive success while leveraging our investors to help us understand the market opportunities.
Traits we look for:
Customer obsessed: We look for problem focused founders who are willing to learn from their customers. They aren’t scared of their customers and launch products early and iterate based on feedback.
Grit: We look for founders who can make a lot happen with very little and don’t throw in the towel early. Many of our founders have been days away from $0 in their bank, struggle to raise capital, yet still persevere. They take the leap of faith and are willing to forgo the cushy corporate job.
Transparency: We look for founders who are willing to talk about the hard things and aren’t afraid to ask for help.
As a founder of a failed startup, there were a lot of ups and downs and ultimately I realized my skill set is not best suited as a CEO. Most people aren’t cut out to be founders. But, having had that founder experience helps me today to recognize founders who have the skills to succeed. Those six years as a founder provide relatable experiences and lessons learned from mistakes made that can also be helpful for early stage founders.
We’re not perfect, but we’ve gotten better at finding and investing in the right type of founders at Ag Startup Engine and our track record speaks of that. Today all companies are operations, merged, or have been acquired and ultimately, that comes down to the founders.
Part 3:
Part three of what I’ve learned over the last few months of being on the inside of Ag Startup Engine.
Our view of ag-tech
The traditional VC approach doesn’t work in agriculture.
You can’t pump dollars into an ag-tech startup and grow at all costs - you’ll just lose money. More money doesn’t equate to more customers or market adoption. You can’t just launch more marketing campaigns or go to more trade shows.
Agriculture isn’t driven by transactions, but relationships.
Farmers and producers want to know who they are doing business with and that you, as a founder, understand their problems. You can’t create trust with more money, but instead need to have real-world experience with the industry and problem.
Slow and intentional capital deployment is critical for LP returns.
This is where many funds investing in ag have gone wrong and where Ag Startup Engine has gotten it right. Ag Startup Engine operates with a philosophy of slow and intentional capital deployment, which is critical for delivering strong LP returns.
By pacing our investments over five years, rather than the rapid 2-3 year timelines seen in some funds, we ensure we can invest in the right opportunities at the right time. Our slower pacing also avoids overpaying in frothy markets.
At its core, Ag Startup Engine isn’t just a fund—it’s an engine driving thoughtful, impactful change in agriculture.
If this resonates with you and you’re interested in being a part of Ag Startup Engine either as a founder or investor, reach out, we’d love to chat!
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