Invest in the future of farming: CropX

Run rate grows from ~$500K to ~$10M in 3 years despite Covid

Precision AgTech platform reduces energy consumption, fertilizer, manpower and water usage, cuts costs, increases harvest yields
90% YOY revenue growth in 2022, projecting ~100% growth in 2023; run rate grows from ~$500K in 2019 to ~$10M in 2022; 70% of revenue SaaS-based
Majority of 2022 revenue from strategic partnerships with John Deere, Reinke, Helm, NASA, NEC, PepsiCo, AWS, Sumitomo and more
Servicing 2,500+ paying customers in 60+ countries; 15,000+ installations, managing over 3M acres
CropX gives farmers 50% water savings, 20% fertilizer and chemicals savings, and 20% yield increase across different crop types
Company on track to reach profitability in 2024; sufficient runway for almost 2 years; current raise will support additional acquisitions, expedite growth
Up to $25M Series C round led by Aliaxis Ventures; investors include Tier-1 global VCs, syndicate of 10+ strategic investors, Tier-1 European family offices

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Dear Josb,

One of the world's most pressing problems is figuring out how to feed a rapidly growing global population in a changing climate with reduced harm to the environment.

OurCrowd is reinvesting in CropX, an agriculture analytics company whose SaaS platform uses artificial intelligence to analyze data from proprietary in-ground sensors, combined with precise weather, satellite imaging, topography, and other data sources. The intelligence provided by CropX allows farmers to save energy, fertilizer, chemicals, manpower and water, cutting costs while improving yields. OurCrowd is investing in CropX. The details in this email are based on information received from, and verified solely by, the company.

Since OurCrowd's last investment in February 2022, CropX reports the following significant developments:

Company and product: CropX Technologies is one of the fastest growing providers of agribusiness farm management solutions in the world, deployed in over 60 countries and across all the arable continents. The company's Farm Management System is a super-scalable, easy-to-use integrated software and hardware system that connects farm data, real-time field/crop conditions and agronomic knowledge to help agribusinesses and farmers save on inputs and increase yields.

The company's expertise is grounded in farming, agronomy, hydrology, machine learning, engineering and tech and its team spans four continents with offices in the United States, The Netherlands, New Zealand, and Israel. CropX employs 85 employees between Israel, Europe, the USA, and Australia/NZ. CropX's management team is gender equal.

B2B/strategic partners and customers: CropX's go-to-market strategy and main channel to market is via B2B transactions.

CropX's customer list includes companies such as John Deere, Nutrien, NEC, NASA, PepsiCo, Reinke and many others.

Global deployments, growth and agronomic performance: CropX's ultra-scalable solution enabled it to grow extremely fast: Since 2019, despite COVID lockdowns, CropX succeeded to deploy over 15,000 systems, in more than 60 countries worldwide, reaching over 2,500 paying customers.

From the agronomic perspective, CropX's system has proved to generate over 50% water savings across different crop types, 20% fertilizer and chemicals reduction, with 20% yield increase.

Furthermore, in just three years and despite COVID, CropX grew from ~$500K in 2019 to a run-rate of ~$10M in 2022, am extreme rarity in AgTech.

Acquisitions: Over the last couple of years, CropX has positioned itself as a consolidator in the AgTech industry, successfully completing three acquisitions of competing companies. In fact, in 2022 PitchBook named CropX as a Top-10 Strategic Acquirer, alongside John Deere, CNH, Mitsui and others.

CropX has proven its ability to successfully find, negotiate and integrate acquired companies and to generate immense value from these acquisitions, including technology, team, data, customers, market access, knowhow and more. Among the company's acquisitions are the Dutch farm management company, Dacom Farm Intelligence, Nebraska-based CropMetrics, and New Zealand-based ReGen.

Sustainability: CropX is proud to have a huge positive impact on the environment! With up to 50% water savings, up to 20% reduction in fertilizer usage and up to 20% positive yield impact, CropX is leading to 9-13% less greenhouse gases emissions, having saved an estimated of 1.5M tons of carbon in 2022. Furthermore, CropX is fully compliant with seven of the UN's Sustainability Development Goals.

Co-investors and existing investors: CropX is fortunate to be backed by the world's leading agribusinesses and Tier-1 VCs, who recognize that CropX precision-ag solutions set new standards of best practices for environmental sustainability and greater farm productivity. Existing investors in addition to OurCrowd include Aliaxis, Finistere Ventures, Innovation Endeavors, Greensoil Investments, Bosch, NEC, Sumitomo, Helm, Reinke.

The Team
The company's strong management team is led by Tomer Tzach – a former venture capitalist and Israeli Airforce Pilot who led two tech companies through acquisition.

The Round
OurCrowd has an up to $5M allocation in this up to $25M Series C round led by Aliaxis Ventures which will invest up to $8M, with participation from existing investors Finistere Ventures, Innovation Endeavors, Helm, NEC, and others.

The company is on track to reach profitability in 2024 and has sufficient runway for almost two years. The current funding round will be used to support additional acquisitions and expedite growth.

Meet the CEO
We're hosting a webinar/conference call on Monday, January 16th, at 6PM Israel / 11AM New York / 8AM San Francisco for investors to meet CEO Tomer Tzach and learn more about CropX.

Can't make the webinar? Register and we will send you a recording of the call.

The CropX Solution
CropX's proprietary in-ground sensor, Internet of Things-enabled and easy to deploy, provides unmatched accuracy for critical soil measurements. The data collected is automatically transmitted to the cloud for processing. CropX's platform combines the sensor data with a wide variety of other data sources which is processed with machine-learning tools to provide actionable insights for farmers on timing and quantities needed for inputs such as water and fertilizer.

Next steps:

Certain information in this email contains "forward-looking information" under applicable securities laws ("forward-looking statements"). These may include, among others, projected performance; expected development of the company's business, projects and partnerships; execution of the company's vision and growth strategy; and the like. Forward-looking statements are not guarantees of future performance and should not be relied on in any way.

Nothing contained in and accompanying this communication shall be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security by OurCrowd, its portfolio companies or any third party. Information regarding OurCrowd's limited partnerships and/or portfolio companies and the investment opportunities on OurCrowd's website is intended and available for accredited investors only (criteria at OurCrowd). OurCrowd urges potential investors to consult with licensed legal professionals and investment advisors for any legal, tax, insurance, or investment advice.