Corporate Finance Division
Agriculture Venture Capital
Synergy Capital Markets investments, and/or arranges investments, in farmland and agribusinesses. Using practical experience obtained from hands on work in the industry and qualifications in agriculture, finance and real estate, our financing strategies are focused on optimizing investment performance with the minimization of risk.
Our agriculture and farmland investment opportunities present sustainable, best practice farming production systems that look to maximize uplift potential and produce rewarding outcomes.
Synergy Capital Markets has also pioneered a Passive Investment model in agricultural investment whereby investors can enjoy the benefits of investing in the asset class without the added complexity of operational risk.
Considered to be one of oldest profession, it still employs a significant proportion of world’s population. In general, agriculture is the cultivation of plants, fungi and other forms of life food, fiber, bio-fuel, medicine and other products to sustain and improve human life. Agriculture played a big part in the rise of early human civilization. Farming and rearing of domestic species generated surplus food which nurtured the development of human beings. Agriculture science is nothing but the study of agriculture. History of agriculture can be traced back to thousands of years and its development has been affected by climate, knowledge and available technology of the time. Western nation were first to adopt the concept of industrial agriculture. Mechanical instruments reduced the hard labor and also encouraged large scale farming without any man and material risk.
Modern agronomy, latest technology and agro-chemicals such as pesticides and insecticides have considerably increased the yield per unit. On the con-side, use of chemicals causes irreparable damage to the ecology and human health. Similarly, modern approach to animal husbandry along with selected breeding has resulted in increased production of meat. On the other hand, it raises serious questions about condition of woman and the health effect of antibiotics, growth hormones and related chemicals extensively used in meat production. Agriculture food production and water management have been the raging topic of debate on national and international stage. In the past few decades, modern practices have done considerable damage to land and water resources. Alarmingly, effects of global warming on agriculture produce are yet to be understood fully.
Agriculture is the second biggest employer after the service industry. The percentage of workers employed in agriculture is considerably less in developed economies.
Fostering Growth without Diluting Equity:
For Agriculture companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Agriculture companies, but we also understand the growth process - and occasionally the growing pains - they undergo.
When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:
Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing
Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation
Retain a larger ownership stake in the company prior to an IPO or other liquidity event
Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly