We've developed plug&play yield monitors (devices + software) and sells them to farmers for quick installation on any harvesters to get accurate data on crop productivity (initial payment + yearly subscription to cloud services). As a result, in the web portal farmers can see how much crop they harvested from each point in the field. This information allows them to use 10-15% less fertilizers and crop protection products which leads to a more careful use of the soil and save it to the next generation.
Team assembled in 1q2021. Current traction: we did first sales, passed successful pilots with a harvester manufacturer, won among 42 agritech startups, receiving dozens of pre-orders for the next year, including the US.
We target crop production farms and agricultural machine manufacturer. The market is estimated at $2.2 bln only for yield monitor solutions we started with.
Problem or Opportunity
Yield is the most important indicator of the efficiency of the farm for the whole year. But the penetration level of solutions that help to control and monitor actial yield from the each point in the field is only 25%. Nowadays, yield monitoring products cost extremely high - $10K+ for hardware only (plus $1K yearly subscription) per combine harvester - and have no user-friendly app interface. We believe that the most valuable in yield monitoring is not hardware but data this is why it should cost tens of times lower. Therefore to remove price blockers, we were able to reduce cost and start selling kits from $1990 per unit per combine harvester and $400 yearly subscription. In addition, we successfully passed tests with the agricultural machinery manufacturer and the results showed the accuracy of calculations of +/ - 5% which is the highest on the market.
Solution (product or service)
At Green Growth, we’ve developed a data-collecting platform that can be installed on any age, make, or model of a harvester. The abovementioned platform provides precise land productivity calculation in hundredweight per acre format. This information allows farmers to save $70K+ per season by reducing costs for fertilizers, agrochemical soil analysis, optimizing field configuration, crop types, and seed suppliers as well as provides tools for operational control for crop productivity and moisture, and work progress time tracking.
The installation kit consists of a number of sensors and cameras that monitor grain flow every second. This data is then visualized in a form of yield maps. Basically, we create Google Analytics for farmers with all hardware needed to capture data. We believe that access to critical decision-making data should be simple and inexpensive.
The main competitors are Trimble, AgLeader, Raven, Topcon, FarmTRX. Despite the fact that they were founded decades ago, the penetration level of yield monitors is too small. There are several reasons: expensive hardware price, difficult access to data, complicated UX, customer service is not so loyal (if a farmer bought less than 2-3 units a dealer’s engineers can not come to service the system), old school technologies.
Advantages or differentiators
Our goal is to disrupt the industry with a new business model Software-as-a-Service with easy installation (it takes 2 hours for an ordinary person to install the Green Growth platform instead of 5-6), universal device (could be installed on any age, make or model of harvester), 10 times lower price and usage-based subscription and bring all the best practices from the latest technologies. Moreover, our platform shows better precision than competitors do.
During harvesting season 2021 we earned $3000 and now getting preorder payments at $36 000. We forecast a revenue in 2022 at $700 000. The price consists of 2 parts: the price for a device ($1990) and yearly subscription ($400).
1. Aftermarket sales. We will target any age, mark, and model of harvesters across the world with low hardware prices and yearly subscriptions. Our total addressable market is ~ $2.2 bln (or 900K harvesters) and the number is increasing. The business model is based on charges for hardware and yearly subscription. The hardware consists of sensors and cameras and costs $1990 per harvester (25 times lower price than competitors one). A yearly subscription starts from $400 and gives access to data analytics.
2. Integration with agricultural OEM. We negotiate with agricultural machine manufacturers to include Green Growth as a standard option for new harvesters. There are thousands of new harvesters that will be shipped with our system. A farmer just needs to activate a subscription.
We started from a yield monitoring platform and then will expand the product line with new solutions.
We will use traditional marketing tools: SMM, participation in exhibitions, live demonstrations, ads in media, youtube channel, international sales team, partnerships with other market players.
Money will be spent on
Primary use of investments: further R&D and production of more kits.
Offer for investor
We are raising $350K in C-corp Delaware with SAFE, $200K left.