FMC Ventures began in 2020 as FMC’s corporate venture capital arm, tasked with finding ‘game changers’ in crop protection. It has scope to invest in early-stage companies beyond the core of FMC to include precision ag, formulation and delivery, biologicals, agrifintech, soil health, and more.
It most recently invested in green insecticide start-up SOLASTA Bio. It has also backed the likes of AgroSpheres, drone maker Guardian Agriculture, agrifintech pioneer Traive and micropeptides producer Mircopep.
This week FMC revealed its sudden restructure, with many blaming the detrimental impacts of the current climate of increased input prices and commodity price volatility.
“I know it’s been a tough period for FMC, and all input companies,” Mark Brooks, the former managing director of FMC Ventures, told AgTechNavigator. “But given the activity of FMC Ventures, portfolio we’ve built to date, internal reputation and buy-in, pipeline of interesting innovations, and long-term optionality the CVC function creates, I’m shocked.”
The quick restructure could be blamed on a recalibrating venture capital market. At the beginning of this year, Brooks even warned, “the agriculture of the future won’t just be about who makes the best, most sustainable inputs, but about who can finance and move those inputs throughout the channel most efficiently.
What does FMC Ventures’ restructure illustrate about agtech investment?
FMC Corporation, however, was keen to reassure the agtech community that it remains committed to innovation in agricultural technology. “While we have made changes to our organizational structure to optimize operations,” it said in a statement, “FMC Ventures continues to operate and manage its existing portfolio of investments under the leadership of Zack Zaki, Vice President of Corporate Strategy & Development.”
Further, Paul Schickler, the former president of DuPont Pioneer / Corteva, now serving on boards of directors as an investor and mentor, told AgTechNavigator the changes at FMC are down to the typical corporate restructuring.
“I do not see the changes FMC Corporation are making to its venture organisation as having a meaningful impact on innovation nor on the investment level in ag technology,” he said.
“Rather, I’d look at this as a normal organisation change as a company positions itself for the future and makes efficiency, effectiveness, or strategic adjustments. In my time with Pioneer (now Corteva Agriscience), I’ve seen the technology model work both ways. One, as an arm’s length entity it will try to enhance the organization’s innovation and research efforts, but it is also governed by availability of investment funds, return expectations and the timeline of those returns.
“On the other hand, scouting for technology that is embedded in the business (like in strategy, M&A or marketing) is often better aligned with business strategy and business needs and is not constrained by pure investment criteria.
“In fact, I prefer the latter because of that business alignment.”
