The European Investment Fund (EIF) has committed €25m to Yield Lab Europe's second agrifood technology fund, which is targeting a final close of €100m for seed and Series A investments across the continent.
Yield Lab Europe, an offshoot from US-based Yield Lab, is targeting companies across animal health, alternative proteins, aquaculture, crop and soil health, horticulture, precision agriculture, and the circular economy.
The EIF anchor, backed by InvestEU, was announced during an EIB Group ministerial visit to Dublin this week.
David Bowles, managing partner at Yield Lab Europe, called the investment a "landmark moment" for Europe's agrifood tech ecosystem.
A minimum of 30% of capital will be deployed in Ireland, with the remainder targeting companies across Europe.
Initial ticket sizes will average approximately €750,000, with two-thirds of investable capital reserved for follow-on rounds.
The fund is classified as Article 9 under SFDR, with a 90% climate action and environmental sustainability investment target. A portion of carried interest is tied to measurable impact outcomes.
Yield Lab Europe's first fund, a €55m vehicle launched in 2019, made 32 investments across eight countries and achieved a positive return, according to the firm.
The portfolio includes Auravant, which the company says covers precision agriculture across 11 million hectares, and Glasport Bio, a slurry tank additive with independently verified methane reduction credentials.
Despite being one of the most polluting sectors on Earth, Agrifood attracts a disproportionately small share of climate capital relative to its emissions footprint.