Since the beginning of 2017, 16 Missouri agriculture technology (agtech) companies have been funded; 15 of them have been in the St. Louis region. These companies almost exclusively innovate in crop-related science or technologies related to crops rather than livestock. This innovation teaches a lesson to the Middle that agriculture is not just about exporting commodities – it can involve value-added technical innovation that increases the value of the commodities and creates wealth in its own right.
One of the clear leaders in this effort in St. Louis is Benson Hill. This is a machine learning, big data company that utilizes algorithms to unlock opportunities to uncover better genetic traits of common crops. Using these tools, the company is then able to edit and/or breed specific genes into crops. The company describes its technology as “proprietary phenotyping, predictive breeding, and environmental modeling algorithms.”
Following 2020’s giant $150 million Series D venture capital raise, CEO Matt Crisp was interviewed on Cheddar. In that interview, he described Benson Hill’s efforts by stating, “Benson Hill has an innovative technology platform that sits at the intersection of genomics innovation, AI, and machine learning, and it allows us to predict how we can improve the genomes of plants and how we can make better food and ingredients. And when I say better, I mean more nutritious, more sustainable, better tasting – and healthier for all of us and better for the planet.”
This solution is clearly complex, and St. Louis is one of the few areas on this planet (currently) capable of dealing in the complex, emerging fields that blend genetics, agriculture, software, and other technologies. Benson Hill could not have been started anywhere else. Recently AgFunder News named Benson Hill to its Top 20 list of highest funded agri food tech startups of 2020. What is interesting about this list is that it includes three categories – 1) food delivery, 2) field robotics, 3) lab-based proteins. And, then there are the exceptions – Benson Hill being one of those. The Middle generally has an opportunity to own the intersection of technology and crop science. St. Louis is the current leader in the region.
St. Louis has smartly positioned itself outside of the trendy food delivery and lab-based protein market; instead, the community is creating multiple crop genetics and agriculture related technologies every year. These technologies are facilitating changes and improvements in food that range across the Middle and the entire food supply chain.
Another good example of a St. Louis agtech startup is CoverCress, which is based in Creve Coeur. The company has created a crop breeding technique that produces a crop and protects the soil between corn and soybean rotations. Covercress is an evolved form of pennycress. It produces an oilseed crop that has been used in food, animal feed, and for energy purposes.
In a recent article (and radio interview), St. Louis Public Radio interviewed Toni Kutchan, Vice President for Research at Donald Danforth Plant Science Center, in which he stated, “Pennycress…is a “weed” that Missourians can find growing road-side.” This type of innovation illustrates the dynamic entrepreneurial environment in St. Louis. The innovation is adapting in the Middle for better use and improved agriculture in a way that most coastal innovators simply cannot match. Essentially, the Midwest’s geography provides a unique awareness of local advantages that are critical at the origin of the food and ag supply chain.
St. Louis is leading the Middle in the agtech space. Unlike innovations coming from most of the region, St. Louis is consistently leading in crop genetics and new practices. Another good example is NewLeaf Symbiotics which blends those two strategies. The company has focused on finding symbiotic microbes that are beneficial to plant development and the growth process.
This explains why NewLeaf has attracted interest from so many investors, including local ones such as Lewis & Clark’s Agrifood Fund and St. Louis Arch Angels. The company has also seen support from throughout the region – with many national firms finding value in the St. Louis based startups. For example, Koch Agronomic Services, a Wichita-based extension of Koch Fertilizer, invested in NewLeaf. Ken Wabel, Koch’s representative for NewLeaf stated, “We invested in NewLeaf Symbiotics because we believe biologicals are becoming an increasingly important part of agricultural crop solutions. NewLeaf is well-positioned to lead the way.”
In total, agriculture and agtech deals in St. Louis over the last four plus years have seen more than 60 investors participate. These investments include many local participants as well as an array of companies from around the world – including Colorado, Germany, the Research Triangle, San Francisco, and Silicon Valley. In other words, the world is starting to notice what is happening in the St. Louis startup scene. Beyond Bayer and Monsanto, St. Louis is starting to push out startups that are catching the eye and the pocketbook of companies globally.
More than that, however, St. Louis is innovating in one of the Middle’s most essential industries – agriculture. And while many communities would like to compete in this space – St. Louis is leading.
