Founder Pablo Borquez Schwarzbeck is out to prove that access to finance is as important as tech innovation for feeding the future.
ProducePay buys farmers’ harvests at an agreed price, sells it to a network of distributors, and takes a commission on any profits above the original purchase price.
The purchase agreements give farmers cashflow certainty, enabling them to invest in their farms. The Los Angeles company also offers pre-season advances to farmers in five Latin American countries, the U.S. and Canada.
Existing investor CoVenture led the round, committing $5 million in equity and a $70 million debt facility.
Another $2 million in equity came from Menlo Ventures, Arena Ventures, Red Bear Angels and Social Leverage.
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Photo credit: ProducePay