Reservoir Launches $50M Agtech Venture Fund, Backed by Driscoll’s Veteran
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A new evergreen venture fund, Reservoir Venture (VC), is poised to accelerate innovation in agricultural technology, with a focus on pre-seed companies and a unique approach to de-risking early-stage investments.
Reservoir, a firm already deeply embedded in the agtech ecosystem through its innovation accelerator, Reservoir Farms, is expanding its commitment to the sector with the launch of a $50 million venture fund. The fund will concentrate on pre-seed stage startups operating in robotics, automation, precision agriculture, and AI software-as-a-service (SaaS) platforms.
The venture is spearheaded by Matthew Hoffman,a seasoned industry professional formerly responsible for global R&D,agtech,and digital transformation at berry producer Driscoll’s,who joins Reservoir as a General Partner (GP). According to founder and CEO Danny Bernstein, Reservoir VC is designed to fill a critical gap in the market by providing “smart capital” to promising startups before they achieve product-market fit.
Building on a Foundation of Innovation
Reservoir VC’s creation was directly inspired by the success of Reservoir Farms, which recently celebrated its groundbreaking. The 40-acre innovation hub, located in Salinas, California, operates with a sub-lease from food producer Tanimura & Antle and boasts John Deere as its exclusive original equipment manufacturer partner.
“We came up with the idea for Reservoir VC based on the fact that we are getting to know these companies really well,” Bernstein explained.”And if we can provide really smart capital to them, we can help move the industry forward, and we can accelerate solutions.”
reservoir has already demonstrated its investment acumen with early backing of companies like TerraBlaster (soil health), Agriful Software (SaaS for the produce industry), Nexstera Tech (sensing technology), and Farm-ng (automation), the latter of which was recently acquired by Bonsai Robotics.
A new Approach to Agtech Investment
Reservoir VC intends to disrupt traditional agtech investment models by prioritizing hands-on collaboration and real-world testing. The fund will focus on companies with “valuations aligned to today’s agtech exit realities,” according to a company release.
A key differentiator for Reservoir VC is its commitment to actively engaging with startups in the field. “We will have [investors] in the field. We will have them in our fields. we will have field testing,” Bernstein stated. “We are doing field testing with UC Davis as a collaboration with our head of ag robotics. So, we are going to do some things differently, and Matt will drive that.”
This approach stands in contrast to some investors who, Bernstein noted, rarely venture beyond the boardroom to assess the practical submission of new technologies.
The Rise of AI in Agriculture
While Reservoir has historically focused on the physical aspects of agtech – particularly robotics – the launch of reservoir VC signals a growing interest in the potential of artificial intelligence (AI). The firm recognizes that AI-powered software can significantly improve farming operations and unlock new revenue streams for growers.
“There will be AI tools [and] software platform services that come for ag that can improve decision making [and] that can help growers really make sense of the terabytes of data that are coming out of their farms every tractor turn, etc,” Bernstein elaborated. “We see that there is going to be a role for software.”
The fund’s investment strategy reflects a broader trend within the agricultural sector, as farmers increasingly seek ways to leverage data and technology to optimize yields, reduce costs, and enhance sustainability.
