Agribusiness Monsanto and software provider Microsoft formed a partnership yesterday to invest up to R$300m ($92m) in Brazil-based startups, Reuters has reported.
Wireless technology manufacturer Qualcomm is also a partner in the fund, which will be managed by Microsoft and which will provide funding to early-stage companies that are developing tools that can be used to improve agricultural production.
Each participant will receive up to $460,000 in funding and will be given the option of repaying the investment within a three-year period or converting it into equity.
Rodrigo Santos, head of Monsanto in Latin America, said yesterday at the Global Agribusiness Forum: “We want to foster new startups in the agricultural sector. There is a vast area for research and development.”
Monsanto generally makes strategic investments in startups through its corporate venturing vehicle, Monsanto Growth Ventures, though no Brazil-based companies were part of the initial portfolio it disclosed in January this year.