BASF invests $4 million in AgVentures II Fund

As one of the main participants, BASF Venture Capital has invested $4 million in the first closing of the Brazilian AgVentures II fund managed by São Paulo-based SP Ventures.

The fund that focuses on start-ups from the Latin American agricultural and AgFood sector aims to support 20 to 25 new companies founded and headquartered in Latin America.

For BASF Venture Capital, this is the first investment in Brazil. Other multinational companies are engaged with the fund as strategic investors. The participants also include financial investors, international development finance institutions and local family offices.

With its first investment in Brazil, the German chemical giant, which recently beefed up its portfolio with the acquisition of s assets worth €7.6 billion formerly belonging to Bayer CropScience, is taking an important step in supporting the activities of its Agricultural Solutions segment and preparing the ground for its own future direct investment activities in Brazil and Latin America, said Markus Solibieda, managing director of BASF Venture Capital.

Along with providing financial and technical support, BASF said it also plans to collaborate and share know-how and market insights with the young businesses as an anchor investor in the SP Ventures network.

Francisco Jardim, managing director of SP Ventures, commented that, with its high profile in our region, BASF will convey institutional credibility with the entire agribusiness economy in Brazil.

By tapping into the Germans’ technical expertise and market know-how, the private equity group can further improve the quality of investment decisions, the MD added.

Noting also that “BASF’s operating assets are also well suited to add value to the fund’s portfolio,” Jardim said “the venture-backed AgTech firms in our portfolio and BASF will mutually benefit from information sharing and strategic synergies.”