iSelect AgTech Fund

Rolling Fund Investment Program

Winter/Spring 2023

   

The iSelect AgTech Fund provides access to early-stage investments at the convergence of food and health.

Founded in 2012, iSelect Fund Management is a global leader investing in technologies that innovate the agriculture supply chain, enhance food security, improve human health and reduce environmental degradation. We have built a significant network of venture capitalists, technology experts, industry leaders and, most importantly, farmers to drive this innovation. 

Investment Details

Minimum bi-annual commitment: $25,000

Minimum term: One year

Management fee: 2% per year 

Admin fee: 0.15% one-time fee on committed capital

Carry: 20%

20 companies per series

 

Benefits:

  • Access: iSelect offers the opportunity to invest alongside established, venture capital investors in emerging growth technologies at low investment minimums
  • Diversification: we take a balanced portfolio approach
  • Impact: we are focused on supporting soil and crop health solutions to meet surging global protein demand, improve the taste, nutrition and affordability of food, boost farmer profitability, and increase environmental sustainability

What We Invest In

Food System Innovation

We seek to simultaneously solve for 1) doubling protein production, 2) improving the taste, affordability and nutritional quality of the food we eat, 3) improving the environmental sustainability of our agricultural system and 4) increasing farmer profitability. Our specific sub-themes in food and agriculture include:

  • Data-Driven Agriculture: Crop analytics and precision agriculture are changing what is possible on the farm, with remote sensing technologies providing localized crop and climate data and eliminating the need for manual sampling and testing, even among livestock. This shift to in situ measurement is enabling farmers and ranchers to do more with less, delivering better products at scale for lower cost.
  • Scaling Protein: As the world’s population grows, demand for greater protein access is growing as well. That is why iSelect is supporting what we view as the three pillars of protein to meet this demand: Animal protein, plant-based protein, and cultivated / fermented proteins. Innovation in this area is not only about health but providing more and more people with access to the proteins they need to thrive.
  • Synthetic Biology: Innovation around biology, particularly as it pertains to redesigning existing natural systems, is enabling a wide range of capabilities on the farm, in the food system and beyond. iSelect is targeting syn bio segments such as precision fermentation as a service, modular small reactor fermentation and biologics production primarily for use in fermented or cultured proteins, as well as secondary applications in agriculture for genetics and crop protection.
  • Maximizing the Human Microbiome: iSelect takes a holistic view of the microbiome, understanding that gut health is important to overall health and is intimately related to a healthy diet in many instances. Our goal is to help support a healthy microbiome through diagnostics and new treatments, with a particular focus on the certain prebiotics, probiotics and postbiotics that have important and outsized positive effects in certain populations.

Human Health Innovation

Our goal is to empower the patient to make better, more impactful decisions that improve their health. To this end, we invest in preventative healthcare tools like those used for diagnostics, personal health devices that support measurement & management and the lifestyle change technologies that help people eat and live better. We are also investing in genomics and personalized medicine technologies that offer easier access to personal health data and the help needed to interpret those findings and take action.

  • Improving Human Health: Chronic cardio-metabolic diseases such as Type II diabetes, cardiovascular disease and obesity are among the most costly to treat and are indicative of the increasing linkage between disease and our metabolism. Often, these diseases are directly related to the food we eat and associated inflammation in our bodies. iSelect is committed to addressing these conditions through the combination of food and health system innovation.
  • Data-Driven Health: Data systems are serving to educate patients and increase self care, while advanced analytics are accelerating the research and discovery processes for new drugs and treatments, leveraging AI and Big Data to make sense and correlate disparate systems.
  • Enabling Technologies to Support Healthcare Innovation: Somewhere we also need to weave in our “enabling technologies story” to explain things like Flywheel, Molecular Assemblies and Cyrus.

Download iSelect Mobile App to Get Started

Investor FAQ

What is a rolling fund?

 A rolling fund is a new type of investment vehicle that is structured as a series of limited partnerships/llcs: at the end of a designated investment period, a new fund is offered on substantially the same terms, for as long as the rolling fund continues to operate. With this fund structure, rolling funds are publicly marketable and remain open to new investors. (Hence the term, “rolling.”) AgTech Fund I will end and a new fund will be established once it has invested in 20 portfolio companies.

How does an investor subscribe to a rolling fund?

Right now, accredited investors (“LPs”) can apply to subscribe to the AgTech Fund through the iSelect App. Rolling funds, being 506(c) funds, require additional steps to verify the accreditation status of their investors. U.S. and non-U.S. investors should review the standards under their applicable securities laws, as well as the fund platform’s accreditation process, to qualify as an accredited investor.

What is your due diligence process?

iSelect reviews hundreds of companies annually to identify a select few that meet our diligence and suitability standards. We conduct, on average, 120 hours of diligence on every company we offer to investors on our platform. Informed by leading research and industry best practices, iSelect’s diligence standards aim to identify endogenous risks in investment opportunities.

Does the iSelect rolling fund have to deploy all its capital before launching the next Series?
If a fund doesn’t deploy all its capital in a given Series, the remaining capital balance is automatically rolled into the next Series as additional capital from the fund’s currently-participating subscribers. LPs receive a corresponding contribution to the new quarterly Series in addition to their subscribed-for capital contribution.
What does the fee structure for rolling funds look like?

For LPs, the key terms and investment details are always disclosed in the offering documents/subscription documents. This includes terms and fees like, but not limited to:

  • Management fees ( up to 2% per year over the life of the fund, calculated and charged quarterly)
  • Carry (up to 20% of the profits after returning investors original capital investment)
  • “Recycle” fees (sometimes, a fund manager will reinvest a portion of the management fees back into their fund, which lowers the total effective cost)

The fees for operating a rolling fund are largely similar to the fees for traditional private funds.  For example:

  • Administrative  fee (a one-time fee of 0.15% charged on committed capital to pay organizational and other costs related to creating the fund)
  • Minimum fee per series ( $20,000 per quarter, waived for the first two quarterly series)
  • Fund Administration, Tax and Audit Fees

These and other fees are charged to rolling funds for access to the platform, and they’re reflected in the terms offered to LPs.

How do distributions work for iSelect rolling fund?

There are no targeted distributions.  Distributions will be made upon liquidity events with the underlying portfolio companies.

What stage investments will you target?
Mostly seed and Series-A, but we will occasionally do a later stage round where it makes sense. However, our focus will be seed and series-A.
How many deals will you invest in per Series?
Our goal is to invest in no less than 15 companies and target of 20 companies per Series.
What investment risks are involved?

Investing in the Company’s common shares is speculative and involves substantial risks. These risks include, but are not limited to; illiquidity, due diligence risk, underwriting risk, business valuation risk, business plan risk and execution risk. There are also extrinsic risks that are beyond any company’s control. While iSelect’s diligence process seeks to mitigate many of these risks, they remain systemic to private venture investing and are impossible to eliminate, which is why diversification is so important for even the most skilled investor. Potential investors should review the risk factors included in the private placement memorandum (PPM) before investing in the Fund. In addition, investors should understand before investing that they could lose their entire investment.

Unanswered questions? Contact iSelect