Source.ag raises $17.5M for applied AI in CEA, pushing total funding past $60M

Source.ag, an Amsterdam-based developer of AI software for controlled environment agriculture, announced Nov. 3 the successful close of its Series B funding round, raising $17.5 million.

The investment was led by Astanor, with participation from investors including seed breeder Enza Zaden and Dutch grower cooperative Harvest House. This new capital injection brings Source.ag’s total funding to over $60 million in five years.

The investment follows a period of rapid growth marked by the deployment of its AI software with strategic partners and collaborations across Europe and North America, the company said.

"The funding underscores the critical role of applied AI in a sector facing two major hurdles: rising global demand for fresh produce and a growing deficit of experienced cultivation expertise," Source. ag said in a news release.

"While much of the tech world focuses on conceptual AI, Source.ag specializes in measurable, applied AI that supports growers daily," the company added.

A plant balance factor simulation from Source.ag.

The software, created in 2020, is used in more than 300 greenhouses covering 2,500 hectares across 18 countries, contributing to the daily supply of tomatoes, bell peppers and cucumbers for an estimated 40 million people according to Source.ag.

"CEA is the most efficient solution for managing land and water scarcity, but it is constrained by limitations in human capacity," the company said in a news release. "Source.ag overcomes this by centralizing data and digitizing growing knowledge, functioning as an 'AI co-pilot.' Among other things, the software enables companies to predict tomato yields with far greater accuracy and fully automate irrigation. This not only boosts production volume but also enhances quality and efficiency across the entire value chain, from grower to consumer."

"This Series B round confirms the industry's belief in our vision: food chain innovation requires AI companies to partner closely with the industry," said Rien Kamman, CEO and co-founder of Source.ag. "The grower is the core player, the one putting healthy food on supermarket shelves, and we build the solutions they need to excel. Our ambition is to sustainably feed everyone with sufficient fruits and vegetables. This investment confirms the market views us as the definitive AI partner leading the sector into the future."

The funding will accelerate global scaling and product development as Source.ag aims to expand its AI product suite, the company said.

"Our objective is to make the food chain more sustainable, and controlled environment agriculture (CEA) is a necessary technology to achieve this," said Hendrik Van Asbroeck, managing partner at Astanor. "Since our initial investment, Source.ag has demonstrated that AI is key to scalably delivering climate-resilient food production. They’ve successfully transformed AI from a promising theory into an indispensable operational platform for the world’s largest fresh produce growers."

The Source.ag plant app.

"By collaborating with Source.ag, we integrate a crucial data layer into our seed breeding," added Jaap Mazereeuw, CEO of Enza Zaden. "Source.ag’s AI strategies, combined with our varieties, minimize risk for the grower and ensure they maximize the potential of our innovative seeds. This is a joint commitment to helping our customers succeed in a rapidly expanding market."

"Our growers experience the value of Source.ag daily, from saving labor time to achieving better forecasting accuracy. That's why we’ve been working closely with Source.ag for multiple years," said Jelte van Kammen of Harvest House. "We see Source.ag as a strategic partner that equips us to meet our growth targets and secure the competitive data advantage the evolving market demands. It is a direct investment in the sustainability of our cooperative and an efficient fresh produce chain."