22 June 2020, London, UK: ADM Capital Europe, the London-based private equity firm, is pleased to announce that its Cibus Enterprise Fund (“Cibus”) has invested in a predictive analytics and livestock monitoring software company, Connecterra, located in Amsterdam, Netherlands. Partners in the round include Kersia and impact fund, Pymwymic.
Today, 6 billion people around the world receive 14% of their protein intake from 300m dairy cows on 117m farms. This USD 328bn industry is highly fragmented and fewer than 1% of dairy farmers use technology to help manage their livestock in an industry that is plagued with poor fertility, poor animal health management and substandard breeding. The Cibus Fund team believe that, in Connecterra, they have found a value additive technology that can improve animal welfare and increase returns to farmers by providing some much-needed technological advances and insight into an otherwise archaic farming system.
Connecterra has developed a solution that it has named IDA (Intelligent Dairy Assistant), which can provide farmers with the early detection of health issues and fertility predictive analytics. IDA gives farmers the power to be proactive in preventing diseases and monitor their livestock with real time data, aiming to disrupt the dairy industry by significantly cutting the cost associated with animal care and antibiotic use. Through the use of sensors, cloud computing, integrated data sources, Artificial Intelligence and machine learning, IDA identifies these potential issues on the farm two days before a human can observe them, providing the farmer with its recommended solution and support resulting in a 50% reduction in antibiotic use, 20% reduction in labour costs and 30% improvement in farm efficiency.
Commenting, Alastair Cooper, Head of Early Stage Investments at ADM Capital Europe said: “We are most excited to invest into Connecterra, the Company is at the forefront of innovation within the dairy industry, powering innovation through its sensors and cutting edge artificial intelligence. Connecterra’s IDA software empowers farmers via predictive intelligence to drive productivity and increase sustainability. IDA connects farmers to the value chain whilst increasing animal welfare and improving farm efficiency. Its system, harnessing innovative technologies, is a natural fit for Cibus Enterprise Fund which focusses on investment opportunities in the Agri-Food Tech sector. We are excited to help Connecterra continue to evolve and expand into new markets.”
Commenting, Robert Appleby, CIO, ADM Capital said: “Connecterra is a great example of how sustainability and commercial viability in food production have become inseparable handmaidens. If you have happier cows, use fewer inputs and can allow farmers to make informed decisions, you can be assured of a superior outcome. We believe Connecterra is emblematic of the adoption of technology to produce better food, in a better way.”
ADM Capital Europe LLP
Tel: 0203 155 1980
About ADM Capital
ADM Capital is a Hong Kong and London-based private credit and private equity fund manager and adviser. Founded in 1998, ADM Capital manages or advises USD 2.39bn across a range of funds. With over 45 people operating out of 4 international offices ADM Capital manages closed-ended and open-ended funds and managed accounts. With its long track record, and expertise in Asia, ADM Capital focuses on off-market private transactions accessed via its extensive, proprietary network. ADM Capital launched Cibus Enterprise Fund in 2019, focussed on investing growth capital into sustainably run, global food and agriculture companies.
About the Cibus Enterprise Fund
The Cibus Enterprise Fund has a global mandate to invest in late-stage venture companies in the agri-technology sector. The Fund sees significant investment opportunities presented by global demographic changes, shifting consumption patterns and the inability of the world’s fastest growing economies to meet rapidly increasing regional demand for high-value foods. Cibus targets companies with strong management teams that are active in one or more stages of high-value food chains and looks for companies that are established category champions with a demonstrable technological advantage. Investments are evaluated on their environmental sustainability as a key determinant of value creation.
In October 2018, The Cibus Fund was the first fund to be given ‘Guernsey Green Fund’ status by the Guernsey Financial Services Commission. The Guernsey Financial Services Commission launched the Guernsey Green Fund in July 2018 and it is only awarded to those funds which meet strict eligibility criteria designed to reassure investors that funds are invested in line with appropriate environmental standards. Cibus has been granted this status in recognition of the fact it regards environmental sustainability as a key determinant of value creation.
Legal References and Disclaimer:
References herein to “Cibus Enterprise Fund” or “Cibus” are references to Cibus Enterprise Fund LP managed by Cibus Investments Limited and advised by ADM Capital Europe LLP. References to “ADM Capital Europe” are to ADM Capital Europe LLP and references to “ADM Capital” are to the ADM Capital Group comprising ADM Capital Europe and ADM Capital HK. Those members and employees of ADM Capital Europe LLP who are involved in advising the Cibus Funds are referred to as the “Cibus Team”. References to “Connecterra” or the “Company” are to Connecterra Holdings Limited and its subsidiary companies. This release does not constitute an offer to subscribe for Cibus or any other fund managed by Cibus Investments Limited.