The following blog is based on a presentation given by Edwin Quattlebaum, Chairman and CEO of AquaAnimal Health Corporation, at the AgInvestor Lab hosted by Feed the Future Partnering for Innovation.
Edwin Quattlebaum, PhD is the Chairman and CEO of AquaAnimal Health Corporation and has extensive experience raising investment capital to commercialize agricultural technology. In a morning session at the AgInvestor Lab, Ed highlighted investor risks, rewards, milestone-based payments and methods for companies of any growth stage to attract financing for agricultural technology. Encouraging companies to “understate and overdeliver”, Ed explained that two common mistakes are not acknowledging investor risks and overvaluing the technology.
Ed outlined the seven selling points that, when packaged together, are likely to attract investment. These include:
1) A large and defined market
2) An explanation of how the technology fulfills an unmet need
3) A clear picture of how the business and investor are going to make money
4) The novelty of the technology and ability to patent it
5) Expertise of the management and board to execute the business plan
6) A credible exit strategy—how will the investor achieve liquidity and receive a good ROI?
7) Benefit of the technology to mankind and/or environment.
In the video below, Ed explains the challenges facing off-the-shelf technologies and what opportunities there are to commercialize technology for smallholder farmers.
