$11.5M Presses AgTech Accelerator in RTP

Architect's rendering indicates what a new AgTech Accelerator facility might look like if added to the former Hamner Institutes property in RTP. -- AgTech Accelerator photo

Plans for a new kind of agricultural technology startup company started to take shape today with the announcement of an $11.5 million AgTech Accelerator corporation in Research Triangle Park.

A group of investors joined in the initial commitment of funding to establish what they call the first-of-its-kind business model to help establish, house, finance and mentor innovative ag tech companies.

The investors participating in the financing include Bayer, Syngenta Ventures, Alexandria Venture Investments, ARCH Venture Partners, Flagship Ventures, Harris & Harris Group, Hatteras Venture Partners, Mountain Group Capital and Pappas Capital.  

Alexandria and partners have applied the accelerator corporation concept twice before in the past decade, Seattle and New York, to germinate biopharmaceutical companies. However, these investors are establishing this corporation in RTP to capitalize on North Carolina’s global reputation as a leader in agricultural biotechnology and other cutting-edge ag activities.

Choice of RTP launch affirms NC's ag tech leadership

“The selection by AgTech Accelerator of RTP as the site of its launch is recognition that we have world-leading academic innovation, a uniquely skilled workforce, and an existing community that will ensure success of the entrepreneurial model they are launching,” said Scott Johnson, vice president of agricultural biotechnology at the North Carolina Biotechnology Center. 

The AgTech Accelerator office is initially housed in Alexandria offices at 7020 Kit Creek Road, but at some yet-undetermined time is likely to move into new lab, office and greenhouse facilities on the former Hamner Institutes for Health Sciences campus recently purchase by Alexandria Real Estate.

Alexandria Real Estate Equities announced last November that it planned to develop a multi-faceted research hub at the former Hamner site, calling it the Alexandria Center for Science, Technology and Agriculture – RTP, while also using the term “Alexandria Campus.”

NCBiotech is involved in partnering, making connections

“We see this combination of investment in agricultural innovation along with structural capability as a key element in future growth of our sector,” Johnson said of today’s announcement. He said he and his team “have helped the Ag Tech Accelerator management team in connecting with the vibrant agricultural ecosystem that exists in North Carolina,” though NCBiotech has not been involved in funding the new entity.

“Having such a pool of venture capital focused on ag investments residing in North Carolina is filling a need for our community and fills gaps in the continuum of innovation that sustains our world-leading cluster of high-tech agriculture,” Johnson added.

AgTech Accelerator officials said they offer an efficient platform that removes common business development hurdles faced by science-based startups, to allow founding technical experts to focus solely on achieving critical discovery and development milestones. 

“Businesses that serve the agriculture industry must convert increasingly complex and integrated early-stage technology into differentiated solutions and products,” said John Dombrosky, CEO of AgTech Accelerator. “It is really difficult for global agribusinesses to do it all in-house and R&D timelines are compressing. This necessitates new, external innovation and collaboration models. Our unique model fosters a ‘new entrepreneurialism in agriculture,’ enabling new startups to fill a wide variety of important AgTech innovation gaps.”