CIBO Technologies, a provider of software supporting regenerative agriculture, has its sights on a growth equity raise within the next 12 months, said CEO Daniel Ryan.

The company has raised in excess of USD 50m to date. At the end of last year, it completed a second close of its Series C round, he said. “We will do a growth equity financing with an impact investor, probably in the next 12 months or so,” Ryan said. The company plans to raise more than USD 10m but less than USD 25m, he added. The amount will depend on when it decides to enter Latin America and Europe and how many partners and sustainability programs for farmers it wants to add in the US, he said. The company is just starting to enter Canada.

CIBO also plans to expand by adding new crops and regions in the US. It is already working to add canola, for example. Current crops include corn, soy, wheat and cotton, Ryan said.

Without providing figures, Ryan said CIBO has been generating revenue for about two years and is on a path to profitability, though it continues to invest in growth. Asked if revenue was above USD 10m, he said “we are definitely in those ZIP codes.” CIBO works with 10 customer partners including Truterra, a spinoff from Land O’Lakes, and Bayer CropScience, he said. Many of CIBO’s competitors are also its partners. The most well-known is Australia-based Regrow, he said.

CIBO is unique in that “we serve the entire ecosystem – farmer to sponsor, and we have the ability to deliver USDA grants for conservation farming,” Ryan said. CIBO has about 50 employees, he said. The company, headquartered in Minneapolis, was founded by Flagship Pioneering, a venture capital firm. CIBO employs machine learning and AI-based computer vision modeling for crop and carbon simulations. Conventional agriculture contributes to climate change and reduces food system security, according to a recent CIBO investor presentation. Regenerative agriculture can reverse these trends, according to the company. CIBO makes it free for farmers to adopt these practices using support from corporations in exchange for CO2 credits. It also provides farmers access to public and private incentives.

“Our software allows agribusinesses to sponsor growers on a new conservation practice. It makes it easy for farmers to make changes through incentive dollars and agronomic support,” Ryan said. Until these practices become self-sustaining and profitable, this kind of support is needed, he added. Food companies are voluntarily working to control Scope 3 greenhouse gas emissions from their supply chains, he said. “80% of the typical food company’s emissions are in agriculture,” he noted. The corporations apply the credits generated via the regenerative farming practices to reduce their own carbon footprint.

As for fuel companies, renewable producers are already eligible for huge tax incentives to source feedstock from low CO2 farms, Ryan said. Under Rule 45Z of the Inflation Protection Act, which takes effect on 1 January 2025, ethanol producers receive up to USD 1.75 per gallon in tax rebates, he said. In addition to delivering the programs to farmers and quantifying the climate impact, CIBO provides financial reporting on the credits.

CIBO could pursue acquisitions following its next capital raise, or even earlier if it uses stock to finance deals, he said. But right now, the focus is on scaling the business.

For general counsel on intellectual property including trademarks and patents, CIBO works with Latham & Watkins and Faegre Drinker; Deloitte is its auditor and PwC does its tax work.