Formed in association with US venture firm SVG Ventures, the Sunrise Fund will back early-stage agritech startups.
Garbic USA, a US subsidiary of Japanese tomato-derived food and juice producer Kagome, has set up a $50m corporate venture capital initiative called Sunrise Agrifood Tech Fund.
Silicon Valley-based venture capital firm SVG Ventures is serving as the general partner of the fund, which has a 10-year investment period.
Founded in 1899, Kagome produces ketchup and tomato juice products, claiming to have the largest market share in Japan. The company added other green and yellow vegetables to its repertoire in 2019.
Kagome intends to tackle climate change, crop diseases and other value-chain issues through partnerships with early-stage agricultural technology developers. The firm is looking to develop drought and heat-resistant produce and cultivation techniques for crops to grow in harsh environments.
The Sunrise Fund will provide between $500,000 and $1m per startup initially, with the possibility for follow-on funding. Kagome’s existing US subsidiaries such as Ingomar Packing Company and United Genetics Seed Company will help form strategic alliances with entrepreneurs.
SVG Ventures chief executive and founder John Hartnett (pictured) is leading the Sunrise Fund, joined by his colleagues chief operating officer Helen Hartnett and venture partner Greg Young, who are all reprising their respective roles at the CVC unit.
“By investing in and collaborating with forward-thinking startups, we are taking proactive steps to address the impacts of climate change and ensure the future resilience of food systems worldwide,” said Hiroyuki Ueda, Kagome Global Agri Research & Business Centre.
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