We’re excited here at Syndex - world-leading New Zealand agritech company Regen is in the process of raising capital – and it’s chosen Syndex as one of its methods.
They are excited as Syndex has a strong community of agri-savvy investors, making it an ideal platform for Regen’s tech-driven approach to irrigation, nitrogen and effluent management. This business is at the intersection of technology and agriculture, an investment sector that’s been seeing serious growth around the globe. Agtech is a fascinating investment category – just listen to Waikato boy turned global agtech investment leader Arama Kukutai talking to Forbes about how this sector has exploded.
Regen is a player in the wider trend that we see across both the agricultural and investment sectors – the move toward sustainability and responsibility in decision-making. (Is there any industry untouched by this massive shift in behaviour?) I know from talking to the heads of some of our other listed agrisector businesses that there’s a strong drive toward measurably sustainable farming practices. There is a great report released on this at www.privateequityinternational.com called The responsible investment special 2017 (note you do need to sign in to view it) But it demonstrates statistically that this is something a growing number of investors are demanding when they weigh up where to put their money – and it’s a global phenomenon. Every type of investor from mum-and- dad investors in New Zealand to massive institutional investors in Europe want to know that they’re putting their money into something sustainable.
And water is a massive area of concern - Regen gives farmers a recommendation on how to manage their water usage, as well as offering nitrogen and effluent recommendation options. This means farmers have a way to demonstrate their commitment to sustainable farming, show exactly how much water they’re using, and build up a track record of excellence.
Bridgit Hawkins, CEO of Regen, told me her business is forecast to double its number of customers over the next 18 months. Regen is aiming to raise a total of $1.5 million, which is earmarked for both immediate growth requirements (two new salespeople) and longer-term growth strategies. That means more investigation into international expansion; Hawkins thinks there’s good opportunities in the US to leverage the New Zealand pasture expertise as the interest in ‘grass-fed’ claims rises. The company has already raised $1 million in private equity and is now listing on Syndex to seek out another $500,000 to $1.5 million.
Why did the team at Regen choose to list with Syndex? In part it was because our registered investors are looking for something outside the square. They can think about Regen’s story, products and services and evaluate them accurately because they have an existing base of knowledge about New Zealand farming. Hawkins also liked the fact that investors will have a platform to resell their units at a later date, giving them improved liquidity and additional peace of mind.
The minimum investment in Regen is $50,000 and you can find out more by registering your interest here. You can also learn more about Regen on the company’s own website. Regen currently has 18,000 hectares under management, collects 50 million data markers each year. The business was the winner of the 2010 TUANZ Innovation Award (Innovation in the Rural Market category), got a Hi-Tech Awards special commendation in 2010 and was a finalist in the Innovation Awards in 2016.
Ross Verry is CEO of Syndex and a shareholder. The views expressed above are purely his own. Please assess and research all your investment.