Madison — Midwestern BioAg, a company that improves soil health and farmer yields, today announced it raised $21.3 million in a recently-closed capital round. Investors include Bison Capital Partners, S2G Ventures, Tau Investment Management and Madison Bay Capital Partners.
Imprint Capital Advisors, a division of Goldman Sachs, facilitated mission-related investments in the company from The McKnight Foundation and the Franciscan Sisters of Mary.
“We see a company successfully weathering a very challenging time in American agriculture,” said Ping Chu, Partner at Bison Capital. “The choices it is making are positioning the company for significant growth, even in advance and independent of a recovery in the farm economy. Midwestern BioAg’s expertise, honed through its long-term, consistent focus on soil health, offers unique value to its customers and will serve the company very well.”
“One of our goals was to diversify our sources of funds,” said Sanjeev Krishnan, managing partner of S2G Ventures, which led this capital raise. “The early investments from agriculture-focused funds were hugely important, as were the investments from individuals and family offices. But the presence of these institutional investors sends a signal that we’ve crossed an important threshold. We’re prepared for growth.”
Funds will be used to expand the company’s fertilizer manufacturing capacity, build capacity for working closely with large food companies to improve the nutritional content of crops those companies process and distribute, and to reduce the environmental impacts associated with those crops.
“We’re seeking opportunities to align our investments more closely with the foundation’s mission,” said Elizabeth McGeveran, Director of Impact Investing at The McKnight Foundation. “This presents opportunities for both financial and environmental returns. The company’s expertise in nutrient efficiency helps farmers increase yields and the nutritional content of food – that hits the financial goal. It also means fewer fertilizers escape into water supplies or the atmosphere – that hits the environmental goals of a cleaner Mississippi River and fewer greenhouse gases.”
Midwestern BioAg manufactures and distributes fertilizers that build soil health while increasing yields and nutritional quality of both food and forage. Its products and practices engage soil life, enhance nutrient use efficiency, build soil organic matter, improve crop resiliency and increase the long-term productivity of farmland. Founded in 1983, the Madison-based company has facilities across the Midwest.