Investment coalition, led by Cibus Capital, pours $40 million into robotic mushroom farming
In a significant move for the mushroom farming industry, Cibus Capital, a specialist investment advisory firm, has invested in 4AG Robotics, a Canadian manufacturer of agricultural harvesting robotics. This investment marks Cibus Capital's first foray into harvesting robotics for mushrooms.
The Series B round, which also included existing investors InBC, Emmertech, BDC Industrial Innovation Fund, the Jim Richardson Family Office, Stray Dog Capital, and Voyager Capital, raised a total of $58.5m for 4AG Robotics. According to Sean O'Connor, CEO of 4AG Robotics, this funding will help the company transition from a startup to a scale-up manufacturer, aiming to keep pace with the growing demand in the mushroom market.
The global mushroom market was valued at approximately $66.4 billion in 2024 and is projected to grow to over $116 billion by 2030, according to a report by TechSci Research. This growth is primarily driven by the rising demand for plant-based diets worldwide. However, labor shortages are significantly impacting mushroom growers in Western markets, where labor accounts for about 40% of production costs.
To address this labor gap, firms like 4AG Robotics have developed autonomous mushroom harvesting robots. These robots can operate 24/7, precisely picking mushrooms at optimal sizes to maximize yield and improve product quality, which is difficult with human labor given the crops’ rapid growth rates. This technological innovation aims to reduce labor costs, mitigate shortages, and increase efficiency in Western mushroom production.
Archie Burgess, investment director at Cibus Capital, believes that this investment is a step towards a future where AI will be transformative for the physical world, especially in agriculture and food. He stated, "All value capture on a farm is through hardware."
4AG Robotics is not the only company Cibus Capital has invested in that focuses on agricultural technology. The firm has also invested in soil data measurement company EarthOptics, robotic and AI-driven machines for vegetable and flower producers, and a precision pollination service provider, BeeHero.
With deposits for over 40 additional robots, indicating high demand for its technology, 4AG Robotics is one of the first companies to fully automate the human hand in produce harvesting, ushering in a new era for mushroom farming. The funds raised will be used to grow its manufacturing footprint, expand its field service, and speed up the development of features like punnet packing, disease detection, and AI-driven yield optimisation.
Cibus Capital typically invests in portfolio companies for a period of between six and eight years. This investment underscores their confidence in 4AG Robotics' potential to revolutionize the mushroom farming industry and contribute to the projected market growth.
[1] TechSci Research report on the Global Mushroom Market - Forecast and Analysis 2020-2030.
- Cibus Capital's investment in 4AG Robotics, a manufacturer of agricultural harvesting robotics, signifies their move towards development finance in technology-driven businesses.
- Financial inclusion is a key aspect of Cibus Capital's strategy, as they have also invested in EarthOptics, BeeHero, and other companies focusing on agricultural technology.
- The venture capital provided to 4AG Robotics will aid in their transition from a startup to a scale-up manufacturer, aiming to capitalize on the growing demand for automated solutions in the mushroom industry.
- The social impact of 4AG Robotics' technology extends beyond the mushroom market, as it addresses labor shortages, reduces costs, and increases efficiency, potentially revolutionizing produce harvesting across various industries.
