A Bateman’s Bay startup dubbed the ‘Google Maps of the ocean’ has closed a $1.45 million funding round led by global venture capitalist powerhouse Katapult, placing the aqua-tech in the top 1% of candidates in the accelerator program.
Oceanfarmr, formerly known as SmartOysters, was founded by marine-biologist-turned-oyster-farmer Ewan McAsh after two decades in the industry made him realise aqua-farmers need far greater oversight of their operations.
Its first iteration was a humble app that logged the status and location of each oyster bag on McAsh’s farm, but Oceanfarmr has since evolved into a fully-fledged digital farm operations system and network that is slashing work hours and boosting the bottom line.
Oceanfarmr now offers intelligent monitoring systems and geolocation technology that keep tabs on the analytics and mapping of over 70 aquafarms worldwide and counting, including mussels, seaweed and oyster operations.
Relieved Oceanfarmr users have reported to the team that they’re spending up to 50% less time in the water now, and up to seven hours a week less communicating redundant information.
Meanwhile, the Oceanfarmr team are experiencing enormous growth with revenue surging 874% in the past twelve months, leaving the tech startup three years ahead of its predicted trajectory.
“Oceanfarmr was built to revolutionise the aquaculture industry, and with this funding we will be able to accelerate our mission,” said McAsh, who is based on the New South Wales south coast.
“We are already looking forward, and will be focusing on building traction as we bridge to a Series A raise in the new year.”
Perhaps the most groundbreaking aspect of Oceanfarmr, however, is that it is giving aquafarmers access to the same secure financing that is usually reserved for land farmers.
Accessing finance has traditionally been a minefield for aquafarmers as water-based farmland is not privately owned. This means land cannot be used as an asset to secure the loan in question, curbing scale up efforts.
But Oceanfarmr’s ‘Farm to Buy’ scheme is changing that. Since ‘Farm to Buy’s launch in September, Oceanfarmr has received over $60 million in farm funding applications.
And there’s plenty of fish in the sea. The industry’s growth is projected to balloon from its current size of $19 billion to up to $300 billion globally, with plenty of environmental benefits to boot.
“For every $10 million US dollars that is invested in sustainable aquaculture through Oceanfarmr farm finance, the benefits for the environment include the capture of an estimated 39 tonnes of nitrogen, 298 tonnes of carbon and 1,239 gigalitres of water filtered,” McAsh said.
McAsh was thrilled by the bonza $1.45 million raise, particularly as Katapult’s powerful investment placed the startup from Bateman’s Bay into the world-renown global investment company’s top 1% of 1900 candidates from 62 countries.
Katapult VC, which invests in early-stage impact-driven technology startups, has put money behind 178 startups in 47 countries since 2017. It silos investment into three verticals: ocean, climate and food tech.
The VC also runs nine flagship accelerator programs and three corporate accelerator programs, while last year it launched the Katapult Foundation with the aim of building a larger network around so-called ‘impact investing’.
The chief executive officer of Katapult Ocean Jonas Skattum Svegaarden says he is “delighted” to have the team at Oceanfarmr participating in Katapult’s accelerator program.
“In our mission to build a world where thriving ocean and economic development can exist in harmony, we are committed to investing in and helping to scale the most impactful ocean-tech startups,” Skattum Svegaarden said.
So what next for Oceanfarmr? McAsh is eyeing expansion in the highly lucrative US market after having already caught California’s oldest oyster company, Tomales Bay Oysters, which produces 2 million oysters a year and was among the first to join Oceanfarmr.
McAsh tells SmartCompany he’s come a long way since he was a frustrated oyster farmer certain that there had to be a more streamlined and efficient way to run an aquabusiness.
“Before developing the app I was using my memory, whiteboards and spreadsheets – which weren’t fast, were prone to sometimes costly mistakes, and could be an arduous task at the end of the working day and week,” he says.
“The funding is a huge piece of the puzzle in how we ramp up our capabilities to continue serving the aquafarming industry and the people who make it all happen.”
Emma Elsworthy is Climate Editor at The Mandarin.
