Surfing on the Innovation hype curve:

Time to explore business models for agtechon the innovation trigger

Grigoris Chatzikostas

Head of Business Development Department

BioSense Institute

1

Brussels, 11.05.2017.

2Agenda

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02

03

04

05

06

07

Next steps

Technologies in

focus - IoT

Technologies in

focus – Big Data

Technologies in

focus - BlockchainInnovation hype

curve

Trends/Investments

in AgriTech

BioSense Institute at

glance

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BioSense Institute at glance

4

We cannot feed today’s world with yesterday’s agriculture!

In 1900 one farmer produced enough

food for 10 people. Today one farmer

feeds over 120 people.

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BioSense Vision – Agriculture of the Future

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Business development department

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Capacity Building

Strategic Planning

Deliverables preparation

Project Management

Contacts and partnerships

New project proposal

preparation

Business Development

BDD

Project implementation

Performance monitoring

Project administration

Call identification

Consortium establishment

Proposal writting process

Challenge indentification

Implementation schedule

Funding

Investment readiness program

Internal and external trainings

PA4ALL

Mentoring

Selection of start-ups

Initiatives, calls

Start-up mentoring

Technology watch

Ecosystem building

Project reporting

Consortia meetings

External / interal communication

Accelerator

34 projects with 40+M€

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H2020 KATANA

H2020 KATANA

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Selection and

funding scheme

Peer-2-peer evaluation

Reward crowdfunding

Equity crowdfunding

Technology

Marketplace for PA Services

IoT Platform for reaching consumers

Toolbox for the design of

functional foods

Supporting

services

Matchmaking facility

Training program

Lean start-up approach

H2020 KATANA – 1ST PHASE RESULTS

11

40

19

12 8 7 4 1 2 1 1 1 2 1 10

10

20

30

40

50

1 2 3 4 5 6 7 8 12 14 15 20 26 35

Tota

l nr.

of

team

s

Nr of team mebers

NUMBER OF TEAM MEMBERS

Female; 38%Male;

62%

GENDER BALANCE

KATANA Consortium

countries69%

Non KATANA Consortium

countries31%

Applications from KATANA Consortium countries

H2020 KATANA – 1ST PHASE RESULTS

12

15

18

45

2

6

10

11

11

8

3

17

Distribution & retail

Food processing

Primary Production

Food quality analyses/food processing monitoring

Increasing farming efficiency

New ways of purchasing food

Novel food products

Personalised Nutrition and Health

Waste/bio-cascading and stream valorization

Shelf-life

Smart farming technologies

Fields of application of the selected projects

H2020 KATANA - NEXT PHASE

13

Pitch Evaluation Bootcamp EvaluationFunding and

Services

2 minute

pitch as a

qualificati

on for next

round

Peer-2-Peer

evaluation,

without

external

evaluators

Mentoring;

Webinars;

Customer-focused

business modelling

training;

Matchmaking facility;

Consortium building

Reward

crowdfunding

KATANA additional

services:

Investment

readiness program;

5 webinars;

Export promotion

e-learning training

courses;

Equity

crowdfunding.

H2020 Smart-AKIS

Smart-AKIS

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Reports on needs of farmers from France, Germany, Greece, Netherlands, Serbia, Spain and UK.

Report on factors hindering the adoption of Smart Farming in Europe.

An inventory of directapplicable solutions from thelarge stock of researchresults and commercialapplications.

Smart Farming Technologies

Farmers community

Online Smart Community

Platform InventoryNetworking area

Innovation hubs7 hubs Transnational

workshops

https://smart-akis.com/SFCPPortal

Smart-AKIS – 1st year findings

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https://smart-akis.com/SFCPPortal

Platform indicators: search box

Ranking of TRL searched – TRL9

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Trends/Investments in AgriTech

What do newspapers say about agriculture?

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Investments in Agriculture (2016)

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Source: AgTech Investing Report – Year in review 2016, January 31, 2017

• Agtech investment dropped 30%in 2016 year-over-year afterexponential growth for threeconsecutive years, but remainsabove 2014 levels.

• The pullback in funding reflecteddeclines in bioenergy, dronetechnology and food deliveryinvestment.

• It follows a 10% decline across theglobal venture capital marketsafter record-breaking highs in2015 for both the global VCmarkets ($141bn) and the agtechsector.

Where are investors placing their bets?

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1. Big Data and analytics2. Food security and tracebility3. Biologics4. Optimization hardware5. Sensors and connectivity6. New-crop technology7. Autonomous equipment

Top priorities

Source: BCG-AgFunder survey, October 2016

Innovation hype curve

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Ryan Rakestraw, Venture Principal at Monsanto Growth Ventures, PrecisionAg Vision event, October 2016

Innovation hype curve

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Ryan Rakestraw, Venture Principal at Monsanto Growth Ventures, PrecisionAg Vision event, October 2016

Blockchain

IoT

Big Data

Blockchain in Agriculture

Blockchain – opportunities&challenges

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Outcomes from the Blockchain summit, 23rd of February

Opportunities in the field of:

01

02

03

Securing and simplifying

commodity management

Simplify and de-risk

trade finance

Provenance

Challenges while addressing these opportunities

Ability to identify and verify not just people but also

other actors in the supply chain such as

machinery, trucks, and IoT devices.

New standards and governance models must

be developed

Adaptation of existing organizations, systems

and processes to the fundamentally different

market structures

Transparency overall will have an unknown impact

on market structures and behaviors

Blockchain – opportunities in agriculture (1/2)

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Supply chain intelligence needed!

Improved product tracking

• Product tracking

Retailers

Consumers

When everything claims to be handmade and eco, what can

we trust?

Blockchain – opportunities in agriculture (2/2)

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Fair pricing and decreased transaction fees

• Efficient financing

Minimizing Human Error

Better finance for the developing countries

Efficient farm management

• Smart farm contracts

• Data monitoring

• Land registry The village Kolionovo, Russia, has become the first in the world

to integrate Blockchain technology into its farming business and

agriculture management

Blockchain in agriculture – real world examples

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Core business: sensors development for monitoring of crop health and recording results in a blockchainFocused on: long-range wireless networkSlogan: Build the business, not the network!Business Model: Filament’s platform connect physical objects and existing networks into “wider networks and applications” – making smart farm technology into reliable infrastructure.

Blockchain in agriculture – real world examples

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Slogan: Look beyond the label! Know more, buy better!Business Model: Provenance provides buyers – in the format of a real-time data platform witha fully transparent record allowing the end user to see each step of the journey the product has taken: where it is, who has it, and for how long

Core business: Improvement of the traceability of food and providing concrete proof of its originFocused on: Public, secure and all-inclusive information from the food supply chain

Provenance is now experimenting with proving the supply chain of the tuna industry in Indonesia being

delivered to Japanese restaurants

Blockchain in agriculture – real world examples

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Core business: decentralized community-supported agriculture platform, using the blockchain to tokenize shares and encourage engagement in local food economies Focused on: creating new forms of community property ownership, collaborative labourrelationships, and locally oriented alternative economiesBusiness Model:

Big-data in agriculture

Business Model Investigation: Big-Data

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Big Data – opportunities in agriculture

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Development of new seed traits Precision Farming Food Tracking Effect on Supply Chains

Four main areas where big data can be used in the food chain

Big Data in agriculture – real world examples

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Core business: Digitalization of fields with automatic EFRs Focused on: Smart decision makingSlogan: Your data. Real-time. Anytime.Business Model:

Big Data in agriculture – real world examples

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Core business: independent and unbiased℠, farmer-to-farmer agronomic information network.The Network's mission is to improve the livelihood of farmers by making data useful andaccessibleFocused on: Smart decision makingSlogan: Conceived by Farmers, Built by Innovators, and Improved Together.Business Model: FBN utilizes data science and machine learning to provide members withunbiased and unprecedented insights about each of their fields, powered by billions of datapoints from the network. Standard plan for 1 year - $600

IoT in Agriculture

Source: Schmid Ag Technology

Market potential

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Source: Venture Scanner IoT Report Q1 2017, April 2017

IoT in agriculture – real world examples

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Core business: building devices and creating algorithms in the cloud that provide detection and prediction of real-world events that will enable the industrial internet of thingsFocused on: health tracking platform for dairy cowsSlogan: Intelligent Dairy FarmingBusiness Model: Pricing couldn’t be simpler, €7.5 /sensor / month (ex vat), no extra fees

Included in pricing:

•Ida Sensor

•Ida base station

•Upgrades always included

•Maintainance and support

•Damaged sensor replacement

IoT in agriculture – real world examples

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Core business: Maps generation for crop stress identification and digital elevation models of the field.Focused on: complete aerial analytics packageSlogan: Drone. Data. Decisions.Business Model: Pricing: $12.175 for complete package (3DR Drone, Sony R10C camera, gimbal, hard case, 3 batteries; 1 year Site Scan license; 1 year Success Services)

Coming next

H2020 IoF2020

IoF2020 – Open Call

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Winter 2018

When?

All legal persons

eligible for Horizon

2020 funding

Who?

∑ 6.000.000 €;

100.000 – 300.000

€ for beneficiaries

How much?

platform-based

evaluation system

(FRACTALS)

by a panel of

independent

experts

Selection?

Clear description of the

business challenge

Contributing to at least

one AgriFood challenge

Clear IoT challenge

Technology applied at

least at TRL 5

Target for TRL 7 or 8

End users as partner in

the proposal

Requirements?

H2020 DIATOMIC

DIATOMIC – Open Call

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Open call 1 – spring 2018

Open call 2 – winter 2018

When?

Technology

users/adopters and

technology providers in

microelectronics

Who?

∑ 3.000.000 €;

70.000 – 200.000 €

for beneficiaries

How much?

platform-based

evaluation system

by a panel of

independent

experts

Selection?

Clear description of the

business challenge

Business model needed

Field: Microelectronics

End users as partner in

the proposal

Requirements?

BioSense Accelerator

BioSense Accelerator

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Hosting

Corporate

Accelerator

s

Speed

up

time

to

market

Expand

talent and

idea pool Grow

competiti

ve

advantage

Thank you for your kind attention!

Grigoris Chatzikostas

BioSense Institutechatzikostas@biosense.rs

http://www.biosens.rs/46