The success of next-generation water saving products has allowed leading Australian water technology specialist Agrilink Holdings Pty Ltd, to further expand its reach into the US and European agri-business and turf markets.
Agrilink has attracted $7.5 million in funding from Australian and European investors, including $2.5 million from European venture capital firm, Espírito Santo Ventures (ESV), based in Lisbon, Portugal, and $1 million from the Australian-based Centre for Energy and Greenhouse Technologies (CEGT).
Agrilink produces a range of soil moisture and weather sensors for agricultural and turf industries using technology that closely monitors water usage and weather conditions to ensure crops, turf and plants are only watered when they need it.
The company's current venture capital partners are WHEB Ventures, John Plummer and Emerald Technology Ventures (ex SAM Private Equity).
ESV is a venture capital firm of the Espírito Santo Group, focussed on technology-based companies and innovative business projects with high-growth potential.
CEGT is an investment and service provider focussing exclusively on the development of new sustainable energy and greenhouse gas reductions technologies. CEGT's investment in Agrilink recognises the substantial energy savings associated with water use efficiency and the commercial and environmental benefits of the technology for Victoria and all of Australia.
Agrilink Chief Executive, Nigel Hennessy, said the capital raising would allow the company to expand its interests in biotechnology and agriculture business in the US, as well as in the rapidly expanding global golf and commercial turf marketplace.
In addition, the newly forged links with ESV would provide an entry into the Iberian Peninsular market, which in turn offered expansion opportunities across all markets in the European Union and South America.
"There is huge potential for investment growth in the water market, particularly through companies such as Agrilink, which have already invested significant research and development into producing cutting edge water-saving products," Mr Hennessy said.
"The continued support of our current investors as well as new investment from ESV and CEGT not only allows us to expand locally and overseas, but demonstrates that the international investors recognise the work we are doing and the potential to achieve greater success in the global marketplace.
"Already we are achieving significant inroads in the golf course industry in the US with our GolfLinx brand attracting considerable interest. We had also made significant progress into the seed and biotechnology industry with Monsanto taking a lead position in using our technology to assist its research plans.
ESV CEO, Joaquim Sérvulo Rodrigues said the company sought investment opportunities on projects based on technology or with innovative business concepts.
"We value intellectual property as a way to sustain competitive advantage and protect our investment," he said.
"Like Australia, Spain and Portugal have concerns over drought and are seeking ways to improve water use efficiency. Agrilink, with its heritage in soil moisture monitoring, has an aggressive plan for expansion which we saw as particularly attractive."
Espírito Santo Ventures, established in early 2000 as a venture capital holding, has recently changed to a venture capital fund management company. Additional information about the company can be found at http://www.es-ventures.com/ .
The Centre for Energy and Greenhouse Techologies Pty Ltd is a private company managing a pool of funds allocated to it by the Victorian Government. It aims to capitalise both on Australia's specific energy sector requirements and the existing clear global export opportunities. Additional information is available at http://www.cegt.com.au/ .