Deal Type: Corporate Finance
MagGrow, an Irish company set up in 2013, employs over 30 people and has operations in the USA, Canada, South Africa, Australasia, and Europe. They are a patented, proprietary technology that significantly reduces waste associated with conventional pesticide spray applications, delivering your important plant protection products where they matter the most.
The Series A round of fundraising which raised €6m was led by impact investor Astanor Ventures with participation by several strategic international investors, including WakeUp Capital. Founded by individuals who have backed some of Europe's most successful start-ups, Astanor Ventures helps ambitious, purpose-aligned founders build global companies in the sustainable agri-food sector. A number of existing shareholders also contributed to the round.
After spending €10m to date on the Science behind MagGrow’s technology, MagGrow moved to the commercial role out phase of its key Tractor Boom product through various channel partners such as Trimble Ag. This round allows MagGrow to build on that momentum by providing some key additions to the Executive team and Board. In addition, the funding will be used to accelerate research and development of new products, IP and applications as well as building up additional manufacturing capability.
MagGrow has partnered with AMBER, the SFI Research Centre for Advanced Materials and Bioengineering Research, Trinity College, Dublin, a multidisciplinary partnership between leading academics and industry, working collaboratively to answer fundamental research questions. They also have Crop Science and Industrial Engineering, and Research facilities in the UK. MagGrow’s state of the art Agricultural Research Facility will open in the UK in early August 2020.
Commenting on the deal, Richard Duffy (Director, BDO Corporate Finance) said: “We are delighted to have advised on the fundraise and work alongside Astanor Ventures and MagGrow’s high calibre management team. The company has an exciting future ahead given its game-changing crop spraying technology. This investment round will allow the company to accelerate its ambitious growth plans and we look forward to supporting MagGrow on its journey.’’
Gary Wickham, Founder & CEO, MagGrow, said: "The MagGrow team and I are delighted to welcome our new investors who can position the company for rapid growth. MagGrow believes every person on this planet has the right to food and water. These impact investors align with MagGrow's core values and our collective desire to do our part in feeding this planet sustainably. The way to do this is to ensure farmers are profitable in the first instance and sustainable. This is where MagGrow's technology steps in as it allows farmers to achieve both simultaneously and, in doing so, supports the sustainable intensification of global food production."
BDO lead by Richard Duffy, Director Corporate Finance provided Corporate Finance and due diligence support on the deal.