Brazil: Use of drones for biological pest control attracts investors

The use of drones in the dispersion of biological agents for pest control and even for the seeding of reforestation is attracting venture capital funds and innovation promotion programs.

Founded in 2018 and with only two years of experience in the field, Sardrones has just been selected from over 400 startups. It is part of a group of 11 companies that will receive investments of R$15 million from the Startup Invest Summit program through an association with the venture capital fund Bossa Nova Investimentos, one of the most active in the B2B market.

The company, which brings together clients such as Raizen, Jalles Machado, Adecoagro and Bunge, earned more than R$2 million by dispersing biological agents in more than 150,000 hectares of crops not only for sugarcane but also for soy and fruit growing.

The startup also developed a device for dispersing palm heart seeds of the juçara type, which is being used in 17 forest parks by the government of the State of São Paulo.

“We created a solution to meet the shortage of labor with the advantage of being faster, more accurate and more efficient. In the case of sugarcane, for example, access to the interior of the crop, where biological agents must be released, is very unhealthy and dangerous for the worker,” explained agronomist Gustavo Scarpari, founder of Sardrones.

Investors 

The market for mergers, acquisitions and investments in AgTechs is hot. The total contributions made in 2019 and 2020 towards agricultural startups exceed R$100 million and represent more than double the amount observed in the previous ten years, according to data from the District Agtech Mining Report.

This type of transaction, however, requires expert advice. In the case of the negotiation with Bossa Nova Investimentos, Sardrones had the support of Valore Brasil, a consultancy specializing in mergers and acquisitions.

“In addition to valuation, which in the case of startups requires a different methodology from a traditional company, we continue to support negotiations and mentor the search for investors, as the company remains open to new partners,” stated Jaziel Pavine de Lima, Consultant partner of Valore Brasil.

“When Bossa Nova started, we supported projections, analyses of the terms of the agreement and adjustments to the proposal, maintaining greater freedom for Sardrones to define the profile of a future partner,” Pavine highlighted.

He said that the complete merger and acquisition process could start from the active search for the target, initial conversations, valuation, analysis of the term sheet (proposal) and adjustments until implementation of the bid.

“We increased our sales by eight times in 2020. The market for biological agents has tripled in the last two years and will continue to triple in the next. Our business, however, follows the pace of agribusiness, which one cannot compare with software companies or fintechs,” explained Scarpari. For this reason, eke wants to prioritize future partnerships with companies that already work in agriculture.

Innovation 

The novelty of Sardrones is not in biological agents, a solution that agriculture has dominated for decades, but in devices capable of properly dispersing biological agents.

To reach current technology, support from development agencies such as FAPESP and Embrapii, and partnerships with institutions such as Senai, ITA and Esalq/USP were necessary.

In addition to the gadget, Sardrones has developed a geo-referenced application that monitors agent releases according to agronomic recommendations and records climatic aspects, such as temperature, wind and humidity, which can influence its efficiency.

Currently, the company can disperse cotesia flavipes (tiny wasps that fight the sugarcane borer) and trichogramma (dispersed wasps still in the form of eggs), both for the cultivation of sugarcane. Work has also been carried out with telenomists podizi (another species of wasp) in soybean crops.

The original Portuguese version of this article was released on GRUPO CULTIVAR>>