Investors are always looking for good “deal flow,” and the Research Triangle region certainly is providing that for the new AgTech Accelerator. Its CEO says more than 150 “technologies” have been reviewed since a May launch. Why is RTP germinating so may ideas?

That was one of the questions The Skinny posed to AgTech Accelerator’s CEO John Dombrosky as the startup announced $8.5 million in new funding to wrap up an initial harvest, if you will, of $20 million to invest in new and emerging ventures.

“There are clear advantages that we share with entrepreneurs to relocating or forming an AgTech startup in the Triangle,” he replied.

  • “The deep university-driven talent pool
  • “The strong presence of global AgTech companies
  • “The region’s tremendous quality of life.”

North Carolina is home to one of the nation’s largest biotech and crop science-related industrial clusters. Bayer Crop Science, Syngenta (both investors in the accelerator) and several others have major operations in the Park. There’s also an existing and growing hub of agtech-related startups already in the area.

Not to be overlooked is the North Carolina Biotechnology Center, which supports the life and crop science sector in multiple ways from grants and loans to related services.

Now, there’s more capital and an accelerator that will offer a variety of services to help startups.

“The case is made even stronger when coupled with AgTech Accelerator’s unique blue chip capital base, industry and business building know-how, advisory board, and flexible top-notch lab, office and greenhouse space via our special relationship with Alexandria Real Estate Equities,” Dombrosky explains.

The first investments by the Accelerator could be announced before the end of the year, and Dombrosky sees many more possibilities in the pipeline.

“We see an incredible opportunity for the organic growth of home-grown businesses and to attract promising technologies to RTP from around the globe,” he said. 

As for how the new funding will be spent, Dombrosky noted that “the additional capital allows us to increase the scope and quantity of new companies formed.”

He also said the Accelerator will be adding staff.

“We are currently a staff of four and leverage our world class advisory board and consultants as necessary,” Dombrosky said. “As we form and manage new companies, our AgTech staff numbers will expand, likely to a total of seven or eight professionals.”

So how can startups best approach the Accelerator?

“Our web site is a great entry point for submitting technology ideas, www.agtechaccelerator.com, or please approach us at any number of the excellent agriculture or biotech events around the Triangle and country,” he noted.

As for how the deals work, Dombrosky noted there’s not a standard investment.

“Each deal is unique, and many factors impact the initial investment profile, including technology maturity, willingness for the founder to participate, and market potential,” he said.

“We have the benefit of a very flexible funding structure that can range from convertible notes to a substantial Series A.”