Hortau Secures $5M in Financing from Advantage Capital Agribusiness Partners
SAN LUIS, OBISPO, CA - Precision irrigation company Hortau Corp. has now secured financing from Advantage Capital Agribusiness Partners, LP (ACAP) in the amount of $5 million.
Hortau’s soil tension monitoring system is an agricultural technology that endeavors to achieve maximum results with minimal water amounts by acting as a “mechanical root,” according to the company. As it measures how hard a crop’s roots are working to extract water from the soil, the system reports precisely how much water is necessary to growers in real time.
“This investment will help us grow the business during a critical time here in California and the U.S., where water issues are becoming the norm,” Jocelyn Boudreau, CEO of Hortau, said in a press release. “Agriculture is currently going through an evolution phase, using data-driven technologies to bring more precision and insight to the daily decision processes. Our technology is right in line with this trend, enabling growers to make better use of water resources and of various ag inputs while optimizing their return. This new partnership with Advantage Capital will allow us to make our system more affordable and accessible to our growers, accelerating adoption and creating a true win-win situation for the industry.”
Boudreau noted that this investment will allow the company to continue growing its operations in the U.S., in areas like its technical support team and “best-in-class service” for the company’s in-field irrigation management systems and mobile platform.
“Hortau’s proven soil sensing technology provides farmers with a tremendous value proposition in terms of both crop yield improvements and water conservation, which is driving strong growth in the business,” Timothy Hassler, Principal at ACAP, said. “We are very excited about partnering with Hortau and supporting its continued growth.”
The partnership is with ACAP, a $154.5-million fund licensed by the USDA as a Rural Business Investment Company (RBIC), and nine Farm Credit organizations that are part of a nationwide network of banks and lending institutions that are federally chartered to serve the agriculture and U.S. economy.
“We’re excited to be working with Advantage Capital Partners, and align with the fund’s mission to create more jobs in agriculture and improve irrigation technologies in the field,” Boudreau said. “The Advantage Capital team has been a great partner to work with. They’re well connected, know what it takes to be successful in the agriculture sector, and bring a lot more than capital to the table.”
Hortau’s soil tension monitoring system comes with full-service installation, maintenance, and technology support throughout the life of the product. According to the company, it is a proprietary, plant-centric approach that allows growers to cut back on water use while still achieving growth.
As the western states continue to experience the longest drought on record, this and similar practices are ones to keep top of mind.