AgFunder is a new kind of venture capital firm. Their mission is to invest in technologies to rapidly transform our food and agriculture system. They founded AgFunder in 2013 because they believe that venture capital and innovation are the most powerful tools to effect rapid change in our global food and agriculture system. They believe that focused investment, particularly at the early stage, can both provide outsized returns for investors and empowers a more sustainable, nutritious, and accessible food system for everyone.
How you make money
Once you have made an investment in a startup, you will hold private equity in that company. The value of your stake in the company may increase or decrease over time depending on how the company performs. You will receive cash or stock return on your investment if and when a positive liquidity event occurs – for example, as a result of the company going public or getting acquired by another company. Please bear in mind that startup investments are long-term investments that may take years to become liquid, if they do at all.
How AgFunder makes money
Exact terms may vary by investment, but for investments offered via the syndicate model, backers pay a 2% annual management fee, as well as 20% in carried interest.
Is it safe?
For investments in startups, total loss of capital is a highly likely outcome. Investing in startups involves a high level of risk and you should not invest any funds unless you are able to bear the entire loss of the investment.