Boston venture firm Spark Capital has backed some of the tech sector's biggest hits: Twitter, Slack, Tumblr and Medium, just to name a few. So, what does Spark cofounder Todd Dagres see as the next hot thing?
Try scarlet kale.
Well, not kale itself but, rather, an innovative way of growing the leafy green and other produce. Dagres said his firm views agricultural technology as "a massive market opportunity."
"We think we're scratching the surface today," he said.
Dagres is hardly the only one who thinks so. AgTech investment spending has increased sixfold across the world since 2013, according to PitchBook, a firm that tracks venture deals. And the wide range of investors includes VC firms like Spark, large corporations and individuals with personal causes.
One of Spark's first bets is on Boston-based Freight Farms, which grows produce in 40-foot shipping containers, using hydroponic irrigation systems. On a recent visit to the company's South End headquarters, Dagres taste-tested the aforementioned scarlet kale and a sprig of wasabi arugula, which zinged his taste buds.
"I could see muddling this in a drink," he said.
Dagres said he was "really struck" by Freight Farms' mission to grow healthy food in urban environments where fresh produce can be hard to come by. Doing some good in the world is what entrepreneurs sometimes call a second bottom line, but it's not enough to win over a venture capitalist who must answer to profit-minded investors.
"Our investors give us money to invest in companies where we're going to maximize the return to them, and then they're going to go do great things with it." Dagres said. "Our job is not to do double-bottom-line investing. What I really like about mission-based businesses, though, is they're able to attract and retain better people, and they get free PR."