Investment led by Trailhead Capital to ramp up Mad Capital's operations, expand their farmer ecosystem, and transition more acres into regenerative organic farmland.
BOULDER, Colo., Dec. 14, 2022 /PRNewswire/ -- Mad Capital, an impact-focused lender that offers equitable, flexible funding for organic and transitioning farmers, announced today that they've raised a $4M Seed round, led by Trailhead Capital.
"Regenerative agriculture aspires to work with nature, rather than against it," said Phil Taylor, co-founder of Mad Capital. "Mad Capital is a bold reimagination of financing in nature's image, empowering farmers to create farm ecosystems that are good for the Earth and good for humanity."
"Our goal is to finance 10 million acres of farmland by 2032. We are thrilled to have expanded our investor community and now have the resources to continue backing farmers who are transitioning more land to regenerative organic production", added co-founder Brandon Welch.
Conventional and industrial agriculture are responsible for the ongoing degradation of our soil, massive greenhouse gas emissions, biodiversity loss, and chemical laden foods. Regenerative organic farming is a rising movement that addresses these challenges by working with nature to maximize the health of soil, people, and animals. However, many farmers struggle to convert to regenerative organic because traditional banks are largely unwilling to supply transition financing.
"In the coming year, we'll turn our focus to building out our network of mission-aligned capital partners and launching our second Perennial Fund, with a goal of financing an additional 100,000 acres of farmland in 2023," commented Brandon Welch.
Mad Capital manages innovative pools of capital that offer farmers flexible and customized financing to help them thrive during the organic transition period. Their inaugural fund, the Perennial Fund, blends debt funds with traditional financing to create one-of-a-kind capital stacks for their farmers to accelerate their transition. Without this custom working capital, farmers often take a financial hit during the standard three year period it takes for farms to regenerate their ability to produce a consistent crop yield.
Mad Capital's funds are supported by a global cadre of investors that believe this model can scale worldwide, such as Patagonia's venture capital fund Tin Shed Ventures, Silverstrand Capital, Homecoming Capital, and 38 others.
"This is an amazing team with an amazing opportunity in front of it," said Mark Lewis, Managing Partner at Trailhead Capital, an investment firm focused on regenerative agriculture. "Mad Capital is working to determine how do we optimally reward the stewards that are doing the most noble and regenerative work? That is the question we aim to address and innovate on."
Other participating investors in the Seed round include Bonaventure Capital, Homecoming Capital, Impact Assets, One Small Planet, Pelican Ag, Lacebark Investments, and 17 others.
Mad Capital is working to prove the viability of regenerative organic agriculture as an asset class that can provide consistent yield in the face of an uncertain macroeconomic environment. Over time, Mad Capital plans to securitize their regenerative organic farm loans to scale the growing industry while helping capital partners meet their climate and sustainability goals.
For more information about Mad Capital, visit www.madcapital.com.
Mad Capital is a specialty finance company that provides customized, one-stop credit to regenerative organic and transitioning farmers. Mad Capital offers farmers operating, equipment, and infrastructure loans, as well as mortgages, working capital, and transitional loans.
SOURCE Mad Capital
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