Food, Farming & Funding – Why Aren’t we Speaking More About the Role of Regenerative Finance? - Groundswell 2023
Aug 29, 2023
auto_awesome
Three guests join the podcast host to discuss financing in the realm of food and farming. They highlight the need for more funding and finance in regenerative agriculture, explore alternative financing models, discuss the challenges of financing regenerative agriculture, and emphasize the importance of finding funders who align with values and goals. They also delve into revenue-based financing, the impact of funding on farming at scale, and the complexities of financing regenerative agriculture.
More funding needs to flow into regenerative agriculture to make it mainstream and scalable.
Alternative financing models like crowdfunding, loans, and patient capital can support the growth of regenerative businesses.
Building strong relationships with investors through early and extensive conversations is crucial for securing funding for regenerative agriculture projects.
Deep dives
Importance of Funding for Regenerative Agriculture
The podcast episode emphasizes the need for more funding to flow into regenerative agriculture in order to make it mainstream and scalable. While there is limited data on the funding going into regenerative agriculture, it is clear that more financial support is required to drive its growth.
Case Study: Funding for Hisby Food
The episode discusses a case study on Hisby Food, an alternative supermarket focused on regenerative food and farming. Hisby faced challenges in funding their business, but through crowdfunding, loans, and patient capital from Be The Earth, they were able to raise the necessary funds for growth and expansion.
Case Study: Funding for Wild Farming
The episode explores the funding journey of Wild Farming, a regenerative agricultural company. Wild Farming needed outside funding to invest in infrastructure, operations, and working capital. They raised capital through equity, flexible debt, and a mix of institutional and private investors. Their funding journey highlighted the importance of educating and engaging investors in the value and financial sustainability of regenerative agriculture.
Building strong investor relationships
The podcast highlights the importance of building strong relationships with investors. The speaker explains how they were able to establish a strong rapport with a group of investors over six to eight months, taking them on a journey to understand the farming techniques, financial viability, and business model. By fostering these relationships and getting investors passionate about the business, they were able to secure the necessary funding. The speaker emphasizes the need for early and extensive conversations with potential investors, even before the need for capital arises, to build trust and confidence.
Scaling up and transitioning to regenerative practices
The podcast discusses the vision of scaling up a local hub of stores in Sussex that focus on supporting local suppliers and practicing regenerative agriculture. The speaker highlights the importance of scaling up to achieve a larger impact on the local economy and supply chain. They emphasize the need for additional funding, which includes a combination of grants, loans, and potentially a big equity raise. The goal is to create an operating model that can be replicated in other regions, potentially through franchising or licensing, to promote regenerative practices nationwide. The podcast also mentions the potential for institutional investors and larger capital flows to support the transition to regenerative agriculture.
A dynamic session speaking to both funders and founders about their experiences with financing in the realm of food and farming. Recorded live at Groundswell Agriculture 2023, Koen van Seijen in conversation with Tessa Etkin-Silver of Be the Earth Foundation, Ruth Anslow of HISBE Food and Marc Jones of Wildfarming Co.
The conversation will address some of the functions of the financial system that aren’t supportive of this sector as well as some of the innovative ways that these shortcomings are being dealt with. First we will hear a high level overview from the funders perspective and then we will delve into two specific case studies where alternative financing models have supported the businesses to grow. We believe there is a gap when it comes to conversations addressing finance’s role in supporting the regenerative transition as well as the need for finance to transition to more regenerative principles itself. There are a handful of people having these difficult conversations, but we want to bring them to the mainstream. Whether you are a founder, a funder, or a farmer, this conversation is for you.