Summary:
Avalo raises $11 million to enhance sustainable agriculture.
Partnership with Coca-Cola aims to reduce scope 3 emissions.
Innovative GDIP technology accelerates the development of climate-resilient crops.
Focus on creating low-nitrogen and low-water sugarcane and cotton.
Future projects include fast-growing broccoli and rubber production.
Avalo's Innovative Approach to Agriculture
Avalo, a pioneering startup utilizing interpretable artificial intelligence to cultivate climate-resilient crops, has successfully raised $11 million in a Series A funding round. This funding will support a partnership with Coca-Cola Europacific Partners (CCEP) aimed at revolutionizing the sugarcane supply chain and reducing scope 3 emissions.
Funding Details
The funding round was co-led by Germin8 Ventures and Alexandria Venture Investments, with contributions from Coca-Cola, Trust Ventures, Trailhead Capital, and angel investor Will Canine. Existing investors such as AtOne Ventures, Better Ventures, and SOSV also participated.
Transforming Sugar Production
Avalo plans to deploy its rapid evolution platform to introduce low-input crops like cotton and sugarcane that require less nitrogen and water. Nick Schwanz, Avalo's CMO, highlighted the challenges faced by the sugar industry, especially in Australia, where nitrogen runoff threatens ecosystems and production stability. The partnership aims to tackle these challenges by developing sugarcane varieties that can thrive with reduced resources.
Cutting-Edge Technology
Avalo's technology, known as Gene Discovery by Informationless Perturbation (GDIP), leverages AI to swiftly identify genes linked to desirable traits in crops. This innovative approach is expected to shorten the time required to develop new sugarcane varieties from 12+ years to just 5-6 years.
Addressing Agricultural Challenges
The GDIP technology allows for a more efficient breeding process by identifying critical genetic information amidst biological noise. This method excels in predicting plant performance and enhances the breeding program's cost-effectiveness and efficiency.
A Sustainable Business Model
Avalo's business strategy involves collaborating with farmers to cultivate sugarcane that meets CCEP's sustainability goals. They plan to provide farmers with seeds and agronomy support, sharing profits from the sugar produced.
Future Prospects
Avalo is also exploring other crops, including cotton, rubber, and broccoli. They aim to produce low-nitrogen cotton varieties and fast-growing broccoli that can yield six harvests annually. This innovative approach not only addresses market needs but also promotes sustainability in agriculture.
Fundraising in Agtech
Despite current skepticism in the agtech sector, Avalo's partnership with CCEP signals strong market interest, positioning them favorably for future growth and innovation in agriculture.
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