If you are looking for a business model on how aggregation construct can help you, this is a real case study: Farmcrowdy. Farmcrowdy is an agric-tech platform that gives Nigerians the opportunity to participate in agriculture by selecting the kind of farms they want to sponsor. Farmcrowdy uses the sponsor’s funds to secure the land, engage the farmer, plant the seeds, insure the farmers and farm produce, complete the full farming cycle, sell the harvest and then pay the farm sponsor a return on their sponsorship. While this farm process is ongoing, the farm sponsors are able to keep track of the full-cycle by getting updates in text, pictures and videos.
The company announced today [they sent to us] that it raised $1 million from top leading funds including Social Capital, Techstars and Cox Enterprises to scale its operations. Yes, the business that is helping farms has a $1 million seed capital to accelerate farming innovation in Nigeria.
Aggregation is one of the best business models that will help you attract capital especially from global investors. It is a business model that I am preaching to my clients across industrial sectors including financial services. Farmcrowdy has applied it in agriculture; opportunities exist in other sectors.
Farmcrowdy, a Nigerian digital agriculture platform which allows Nigerians to venture in and sponsor agriculture, today announced that it had closed on seed funding of $1 million from international and local investors including Cox Enterprises, Techstars Ventures, Social Capital, Hallett Capital and Right-Side Capital; as well as angel investors Tyler Scriven, Michael Cohn, Josephine Group, FC Agro Allied SPV and Dr. Christof Walter.
Launched just over 12 months ago, Farmcrowdy, the only African startup from Techstars Atlanta’s 2017 cohort, connects small scale farmers with sponsors, who invest in farm cycles. A farm cycle can be anything from poultry [3-5 months] to cassava [9 months]. The farmers receive on-the-ground advice from Farmcrowdy’s Technical Field Specialists who also give them training in better agriculture practices and provide them with quality farm input. Prior to harvest, Farmcrowdy works with pre-arranged buyers who assist the farmers sell their yield at harvest and earn a decent margin. The sponsor then gets their original sponsorship +40% of the profit from the harvest, the farmer receives 40% of the profit and Farmcrowdy receives 20% of the profit. Farm sponsors can get between 6-25% returns after harvest depending on the farm type they sponsor.
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