Fostering AgTech Innovation on Lolland-Falster
Lolland-Falster is home to big agriculture in Denmark. Just south of Copenhagen, it has some of the richest soil in the country. Here's how the region is spurring innovation.
Lolland-Falster is fascinating not only because it has some of the richest soil in the country and is home to big agriculture, but also because its considered “udkantsdanmark” or outer Denmark - a rural region, which has been struggling to attract companies despite its central location between Copenhagen, Hamburg, and Berlin.
Despite this, Growth Train's 7-week accelerator program has succeeded in attracting international talent to the region. Their program focuses on connecting the big agricultural operators with startups, giving them a playground to test new technologies. The program is free and all-inclusive, even covering room and board. Supported by Business Lolland-Falster, the goal is to work with the big ag companies to source solutions to their innovation challenges. I speak with Program Director, Christiane Paaske-Sørensen, on the ins and outs of the program.
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Analisa Winther, Nordic FoodTech 1:19
You obviously have a very close relationship to food. S,o this should be a good question, which is, when did you first realize or was there a moment when you realized that you wanted to work within food?
Christiane P., Growth Train Accelerator 1:29
Yeah, that's a very good question. Because for me, all of that, kind of came organically, no pun intended. But as I mentioned, my husband is a farmer. That came about two years ago, we've only lived here for two years, but he got the opportunity to take over his family's farm. And that has been a dream of his since he was a child. So, there was only one way for us then to go all in and take on the lifestyle. So for me, it has come from a personal perspective. And when I started working as a business developer for Business Lolland-Falster, I kind of took care of a lot of startups. But there were a lot of them who were also farmers, either taking over or working on some of our projects, for instance, with new kinds of crops and things like that. So, I kind of slowly got into the world of agriculture at my work. And then here at the beginning of this year, I got the chance to head our accelerator called Growth Train, which this year has focused on Food and AgTech. Food wise, I'm a huge foodie. I'm interested in all those things. But before getting into this kind of lifestyle, I had this perspective as a consumer. But now that I'm on the other end of the value chain, a lot of things have changed for me also when it comes to how food production works. So, that has been a huge steep learning curve for me when it comes to the whole process of planting, right down to the consumer end.
Analisa Winther, Nordic FoodTech 3:09
And what was it you guys were growing on your farm?
Christiane P., Growth Train Accelerator 3:11
We only have crops. We have sugar beets, and barley, and wheat. And we also have grasses here and rapeseed. So, these things are used mainly for human consumption. For instance, wheat, depending on the amount of proteins in it, can be used for one or another purpose. But the sugar beet is for the white sugar production and the rapeseed for the oil. And the grass, that is actually the seed that they use on football fields. So, that's what we produce.
Analisa Winther, Nordic FoodTech 3:51
So, you guys are located down on Lolland-Falster, which is a southern region of Denmark. And for those people who haven't been there, and probably don't really know what the relationship to food is, or even the entrepreneurial scene around it, can you give us a description of the ecosystem as you see it and what's going on?
Christiane P., Growth Train Accelerator 5:12
Lolland-Falster is a very rich and traditionally agricultural community. So, they have been doing this for hundreds of years. The soil is very rich in nutrients. So, it's one of the best in Denmark for growing crops and requires little resources, for instance, water, because the soil is already providing a lot of that. It's like clay. It's very rich and it keeps water. I mean, that is the background for most people here. Their attention to detail when it comes to food or the relation to food is local. So, it's basically what's growing here, that's what they have been consuming. And it's actually no surprise that a lot of our well-known food producers are from these regions. I think we all know Claus Meyer. He's from here. He owns the Saxkjøbing Restaurant. So, a lot of that comes also from how things are traditionally done here. Having that agricultural background feeds a lot of food entrepreneurs here. Maybe not in the way that we've seen in Copenhagen. A lot of them are very local focused on clean production and organic production, but on a small scale
Analisa Winther, Nordic FoodTech 7:32
Are most of the entrepreneurs you see also farmers? Or is it entrepreneurs who are coming with some kind of AgTech to work in the region and to work with the farmers there?
Christiane P., Growth Train Accelerator 5:02
We do have some. I think most of us, when we think about AgTech and FoodTech, it's a lot of the new things that are coming up like vertical farming, gadgets, and things like that, that are used on the farm. We do have a huge network here. When it comes to machinery, for instance, they are on top of what's happening in the AgTech world. And they do a lot of tests down here when it comes to new machinery or new ways of planting, cultivating, and things like that. So, we have a lot of farmers that are, I mean, they are all entrepreneurs. They all want to optimize their methods and they want to ensure that they use the best technologies and machineries to really optimize their work. A lot of the people that we see in our entrepreneurship scene, it's more knowledge base. And that can be within all kinds of branches, including food and agriculture. But a lot of it starts from a different way because of how we primarily are set up. Because we're at the very beginning of the value chain in food production. So, we're more like test dummies for a lot of external companies that want to kind of test a product here. And our farmers are more like seeking out new ways and new methods. And for some of them, they're so focused on their own production that it's difficult for them to kind of get out of that scene and figure out new ways. So, they work with companies if there's an idea that they want developed when it comes to any fraction of their production. So, if there's any farmers out there that have the big ideas, a lot of them don't have the resources to actually pursue it. So, they seek out companies that they already work with and say, "Hey, is there anything like this out there right now?" And that's how they kind of get into technology in that way.
Analisa Winther, Nordic FoodTech 7:59
Are those corporates or startups that they're approaching in order to do this business development, if they have an idea?
Christiane P., Growth Train Accelerator 8:06
It's corporations. It's actually the ones that are providing them the machinery already. And those are the ones that have contact with startups. And they're the ones that kind of filter out what's relevant for us. A lot of the startups I have met within AgTech, a lot of the products are more geared towards developing countries because we're so advanced here. So a lot of those really, really amazing innovations, it's not so relevant here, at least not in the way that we already are doing things.
Analisa Winther, Nordic FoodTech 8:45
Just as a follow up question, what are some of the companies that are kind of acting as the broker? It's very cool that they're having a collaboration and an open dialogue, but who is it that people turn to if they have these ideas?
Christiane P., Growth Train Accelerator 8:55
I know that they have a lot of talks with companies like KWS or machine distributors like Merck in Danish. So, these are the types of companies. A lot of them are actually agricultural consultant firms that they work with.
Analisa Winther, Nordic FoodTech 9:21
Awesome. And can you tell us a little bit more about the new ways methods, and I think even crops you said that people are working on and playing with down in this region?
Christiane P., Growth Train Accelerator 9:32
One of the things that I know is very important for farmers, especially the ones that I have daily contact with or personal contact with, is how they monitor the crops. So, that is very key. And I know for instance, they have tried using drones. So that requires a lot for the camera technology and things like that. So, monitoring the plants, the health of the plants is really key down here. So, I know there's been a lot of things that have tested. And to figure out how we can actually do this in real time and make sure that we actually tackle a problem. For instance, it could be some kind of sickness in the plants and how we can treat them from far away. How can we make these drones actually treat the plants, or do some specific pesticide treatment on a specific area of the farm instead of having the whole farm treated? So those are the things I think that they are also looking at to make sure that they don't unnecessarily have to put pesticides on the whole entire plot of land, for instance. So, these things they are actually very, very aware of. Not just to optimize resources, but also for the health of the plants, health of the soil. So those are the things that I know right now is the big buzz. And if you peel off another layer, you have companies that are also working on optimizing soil treatments and optimizing seeds to ensure that they are more robust without having to put chemicals in them. It's these things that I know is a huge focus for us to make sure that we actually are producing plants that are as natural as possible without the use of chemicals, and things like that. So those are, I know, a huge focus.
Analisa Winther, Nordic FoodTech 11:03
And it's very exciting, because also, as you said, you guys are not only working with people who live in the local region, but having a lot of other people actually moving down to Lolland-Falster to join the accelerator program or work with you. And you also have this relationship to developing countries. So, maybe we can switch gears and hear about what programs and services you're offering Food and AgTech companies?
Christiane P., Growth Train Accelerator 12:00
Yeah, so the Growth Train, now, this year, has focused on agriculture. Also because we see that need now growing, we need to maybe rethink the way we do things. So, we are inviting a lot of innovative companies from all over the world to kind of join us. And so that we can maybe use our technology and have them also test our technology and our farmers down here. This year, we're only offering a 7-week fast track program. that's a very intensive program for startups. It has an intensive sprint that we go through, and massive networking within pretty much all levels within agriculture - the producers, the consulting companies, but also a lot of investors within that field from venture capitalists to business angels that have a focus on agriculture and these types of new products. Next year, though, we are offering two new programs, a little bit more extensive. So that we actually get to try out the technology here and do a lot of testing. And to encourage a lot of these companies to settle down here and actually run their business here and have direct access to the network that they actually are needing to develop their products.
Analisa Winther, Nordic FoodTech 13:38
Can you give us some more information about the profile of companies applying? Like where they come from, what areas they're working in, in what stage they're in, just a little bit more data and who they are.
Christiane P., Growth Train Accelerator 13:49
What we are looking into is food processing. We are looking for companies that have a proven business idea, that are in the testing phase, that might be in the market already, but needed an extra push to expand their market a little more, specifically here in the Northern Sea Region. So, those are the companies that we have been in contact with. And those are the bulk of the applicants that we've received so far.
Analisa Winther, Nordic FoodTech 13:52
Is it right that in these profiles, you're looking for solutions that support the local agricultural community?
Christiane P., Growth Train Accelerator 14:37
Yes, that is correct. So, that is what actually differentiates us from other AgTech startup accelerators. We are really trying to look at the local relevance in a lot of the products and the startups that we come in contact with to ensure that we actually have the network, the very specific networks that they are looking for. That we can actually match them with the farmers, with the other producers, or investors that are also looking into this. So, that there's a lot more specific interactions. Our 7-week program is also partly customized to the needs of the startup. So, we really go through well, what exactly you need from us? What can we provide you with? That is such a huge focus for us. We would rather have eight or ten very, very strong startups to work with than have 20 and maybe half of them fail in the program. So, we put a focus on the success rate of the program as well. That actually also translates to how much we require from the startup. So local relevance is very, very important for us besides all the other criteria that we all know of from other accelerators. So, the business case, all those things, they're also a must. And the reason why we look at the local relevance is actually for us to ensure that we can support them, and support them very, very intensively and specifically.
Analisa Winther, Nordic FoodTech 16:11
If the focus is primarily in food processing, what is happening in that space right now?
Christiane P., Growth Train Accelerator 16:18
It's really unfortunate. I would say that it's not so much in the press how much work and focus is actually done in how we cultivate plants. How much focus is there. How much science is behind every single seed and how this can actually grow so that it's more robust. I think that is very, very exciting, or a very exciting part of what we do here also. We do a lot of testing for different types of species of plants, or types of plants that are grown to make sure that they are actually the ones that actually give us a lot of output without having to genetically modify them.
Analisa Winther, Nordic FoodTech 17:02
Can you walk us through the application process and how the program works if a startup wants to apply?
Christiane P., Growth Train Accelerator 17:08
The link is on our website. We have a questionnaire there about your company. When we get those applications, we read through everything. The interesting ones, we give a phone call to kind of like have a dialogue with them about where they are, what they need. And there will always be questions with regards to the things that they have answered. And again, we put focus on what you need right now, in the next three months, six months to make sure your company grows. And then we kind of determine from there how we can support them, because that is also the basis for them wanting to settle down here. So once we determine that, there’s a lot of practical information that needs to be in place from their side as well, because they need to be here during the entirety of the program. We kind of work out those details and then we onboard them.. And then we kind of go through the process of accepting them, and getting them here, getting them settled. We actually provide housing for the entirety of the seven weeks because there’s so many things happening every day. A lot of visit to companies, mentors and talks with investors, things like that. We pretty much provide everything for them. So it’s very, very minimal resources they have to use to be part of the program. We pay for everything. We don’t take equity. During the seven-week program, we don’t promise them that we will provide x amount for their company, but we do provide everything else. And that also translates to amounts in euros or Danish krones. And then after the seven-week program, we also try and evaluate together with the startup, if they want to go into the next round or the next step, which is anywhere from four to eight months, depending on the need of the startup. There, they will have the opportunity for our investors to invest in this company. But we’re not a part of that negotiation. We are only there to support them and their business development. So, they will always have us in the process.
Analisa Winther, Nordic FoodTech 19:29
Are there any success stories of companies you'd like to mention who have been through the program, who worked well with the region?
Christiane P., Growth Train Accelerator 19:32
There have been quite a number. One specifically, a startup from Korea. We've only been around for two years. They were in the first session of Growth Train two years ago and they had a technology for monitoring, actually. And that's the time that they joined us, it was more for livestock. And at the time, we kind of accepted everyone within health and agriculture as well. And they actually got so much out of it that they actually moved to Denmark to kind of pursue their company. But since our region is primarily crops, we have very minimal livestock down here. They have recently settled in Copenhagen and are supporting their customers from there. I think that is a success story when it comes to onboarding a company from overseas and settling in Denmark to create a business. And that is one of our focuses as well. And being the company that we are, Business Lolland-Falster, that is one of our utmost focus is to establish companies. And that is also one way that we are also attracting foreign investment by supporting foreign innovation to settle down here in Denmark and grow them.
Analisa Winther, Nordic FoodTech 20:57
So, I think it's a good time to ask the big question, which is, what is your vision for what the Nordic FoodTech ecosystem should look like in 10 to 15 years?
Christiane P., Growth Train Accelerator 21:07
I hope that we continue the cadence that we have right now with the AgTech and FoodTech scene. I think there's a lot of brilliant companies out there. I hope they develop a lot of that more, so that we actually get to use those technologies here in the Nordics. For instance, can we develop more vertical agriculture and actually implement it in conventional farming? So, for me, it's more like the development of those technologies that already are in there. And that sprouts a lot of other startups supporting products or innovations that support these technologies. So, I hope that in 10 years, a lot of the technologies that are already super exciting, which are not yet usable in the daily operations, are in the operational part of our AgTech and Food scene. That's my hope. And I know that puts a lot of pressure on investors. So, I will not go away without saying that investors need to step up also when it comes to supporting these companies. And that's part of the reason why we're here. We're here to develop companies. But we're also partnering with a lot of investors to really look at these companies, see the potential in their growth, and also in their usage in the operational field.
Analisa Winther, Nordic FoodTech 22:41
Two follow up questions to that. One is, do you mainly have local investors in your network or who is it that you're talking to that's interested in investing in this area?
Christiane P., Growth Train Accelerator 22:51
We have a lot of local business angels, and we do partner up with DANBAN. We have a partnership with JBI Equity who has shown focus within agriculture as well. They're actually international. So JBI is one of our biggest partners and stakeholders. And they are also, together with us, looking at a lot of the startups that we take in and all the applicants that have been in the process. We work together with them to ensure that we are supporting the companies that are also attractive for the investors. We only started that relationship this year, after seeing the potential that we could do and after also redefining our strategy for what we want the accelerator to be.
Analisa Winther, Nordic FoodTech 23:46
Besides investors, is there anything else you think the ecosystem is missing to achieve your vision?
Christiane P., Growth Train Accelerator 23:52
I would really love to see a lot more cooperation between the user and the innovators. Part of the focus for me in the job that I have is to really bridge that gap. To have innovators test their technology or develop their technology together with the users. I think it's a very important aspect. And then also behind all of this, you still need the investors, right? You still need a lot of the money to actually make this happen. So, I would love to see a lot more interaction between the user, between the testers, and the ones that are actually going to use the technology.
Analisa Winther, Nordic FoodTech 24:38
How do you think that can happen in a way that makes sense?
Christiane P., Growth Train Accelerator 24:41
Matchmaking. I think we need a lot more matchmaking, a lot more dialogue, a lot more press coverage on these things. I know that the FoodTech Copenhagen scene has incredible and very active members. I think, let's extend that to the rest of the country, because that's where you actually find the buyers. That's where you find the ones that are actually going to use this technology. It's the farmers. It's these consulting companies. It's these machinery distributors that are actually going to use a lot of these technologies and other ones are actually going to bring it to market. So, if we have business developers or businesses to support and to kind of help network and open up the network more, then I think that would help bridge that gap.
Analisa Winther, Nordic FoodTech 25:33
Finally, how can listeners get involved and help you? What's the best way?
Christiane P., Growth Train Accelerator 25:38
Get online. Get in touch. Call us. Ask a lot of questions. Be curious. We are so open to getting people down here and kind of showing what we have. Business Lolland-Falster is the only business support for Lolland and Guldborgsund Kommune for Lolland-Falster. So, we would be the gatekeeper when it comes to getting a lot of contacts if you're coming from the outside and don't know anything about the region. So, we will be able to point you in the right direction. If you're an investor, get in touch with us. Let us know what you need. Let us know what kind of things you're looking for. We will be able to work with you with finding startups and supporting startups that will again become these companies that are going to maintain the kind of lifestyle that we have, and also answer a lot of these questions about environments and things like that.
Analisa Winther, Nordic FoodTech 26:34
Perfect. Thank you so much for your time today.
Christiane P., Growth Train Accelerator 26:38
You're welcome.