Farm Credit Canada (FCC) is not its first foray into the venture capital space, but Crown’s shift in focus will see the financial institution take a more direct approach to agricultural VenCap financing. It’s going to happen.
FCC CEO Justin Hendricks said the move was prompted by changing industry needs. Whether due to changing weather patterns, the need for more innovation, or increased productivity, there is a role for the FCC to play in funding agricultural startups, technology developers, and more.
Hendrix reiterated that while the FCC’s involvement in VenCap is not new, this is the first time the organization has been directly involved in the area. While there will certainly be private equity deals, she says partnerships will still be a big part of what Ben Capp at FCC will look like.
Hendrix said the FCC’s focus on agriculture and agriculture alone means more “patient” money will flow into the venture capital space, and some of the key performance indicators are: It states that it may be something like this. It’s about keeping young farmers in the industry versus just the simple financial return.
This new direction was mentioned in the 2024 federal budget, suggesting the government is issuing new guidance to the FCC, Export Development Canada and other Financial Crown companies to mobilize more funding. did. Specifically, the FCC said it should “continue to pursue opportunities to support agri-food and agribusiness, including through venture capital investments.”
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