Soil testing startup EnrichAg digs up $6M

EnrichAg, a subsidiary of ag tech company Terramera that focuses on soil testing, has raised $6 million of a planned $15 million Series A round, the company exclusively tells Axios.

Why it matters: Ag tech startups continue to win over investors eager to tap into the resilient funding landscape around climate tech startups.

Details: At One Ventures led the initial tranche of the all-equity funding, and founding partner Tom Chi will take a seat on EnrichAg's board as part of the deal.

• The company expects to raise the remainder of the round in the first quarter of 2023, Terramera CEO Karn Manhas tells Axios.
• Terramera, which is based in Vancouver, British Columbia, is still a majority owner of EnrichAg, Manhas says.

Context: Terramera owns and operates multiple subsidiaries that rely on its library of patented software to run independent businesses.

How it works: EnrichAg sells software to help farmers analyze soil contents and recommends ways to increase carbon content in those soils to help stimulate crop growth.

• It collects soil nutrient data via a proprietary sensor that tracks the levels of nitrogen, phosphorus, potassium and carbon.
• Manhas says the AI-based software can help farmers decrease the amount of nitrogen-based fertilizers they use.
• EnrichAg is currently operating its beta-phase sensor and plans to roll out a wider, subscription-based software model to its customers later this year.