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The Spoon

Daily news and analysis about the food tech revolution

soil sensor

CropX Raises $10M for its Soil Sensor and Analytics Platform

CropX, a Tel-Aviv based soil analytics startup, announced today that it has raised $10 million in new funding (h/t Axios Pro Rata). According to the press announcement new investors include strategic partner Sumitomo Corporation Europe, Armada Investments and TaL Capital, which joined existing investors such as Finistere Ventures, Germin8 Ventures, GreenSoil Investments, Innovation Endeavors and OurCrowd. This brings the total amount raised by CropX to $22.9 million.

There are two components to the CropX product: a hardware sensor and cloud-based software. The CropX sensor is a screw-shaped device that farmers literally screw into the ground. This screw shape is actually one of the ways CropX differentiates itself in the soil analyzing space because the threads of the device give it more surface area than straight tube-shaped sensors. Placing sensors on the threads of a CropX allows water to pass through the sensor not just around it.

As water passes through these sensors, information is sent up to the cloud where CropX’s software analyzes the soil for moisture levels, temperature and electroconductivity to determine salinity levels. Results are sent to a mobile app where the farmer can better manage nutrient management and fertilizer application.

But the bigger play for CropX is data. As we wrote last year:

Sensors cost from $600 to $899 apiece and there is a $275 yearly subscription per sensor. Farmers own their own data, and anything CropX learns is anonymous and on an aggregate basis. But it’s these data insights that are the real play for CropX. [CropX CEO Tomar] Tzach wouldn’t go into specifics but said that eventually, the company will be able to “provide significant data to other industries and geographies.”

CropX is among a, well, crop of companies looking to give farmers greater insight into their dirt. Other players in the soil sensing space include Teralytic and Arable.

As part of today’s announcement, CropX also said that it has brought on John Vikupitz as its new president, where he will focus on scaling the company.

CropX Makes Soil Sensors to Measure Moisture, Gets Investment from ICL

Though CropX’s soil moisture measuring sensors are prominently displayed as the main product on the company’s homepage, CropX CEO Tomer Tzach’s ambitions are much bigger. “We want to be the Nest of agriculture,” Tzach told me, referring to the smart home thermostat company that Google bought for $3.2 billion in 2014.

Just as Nest thermostats provided Google with valuable data, CropX sensors are a gateway for valuable agricultural insights.

Founded in 2013 and headquartered in Tel Aviv, Israel, CropX makes sensors that farmers can literally screw into the ground, making for super easy self-installation. According to Tzach, the screw-like shape of CropX actually makes their product better than other soil sensors on the market. The sensors are embedded along the “threads” protruding from the shaft of the device embedded in the soil. Because of this placement, water can pass through the sensor. Tzach says other sensors are just tubes that go straight into the ground, and the narrower footprint creates a less accurate reading.

On average, one CropX sensor can cover 40 acres, and using topographic and USDA data, the company can tell a farmer the optimal spots to plant their sensors. Once installed, each sensor communicates via cellular networks directly with the CropX software in the cloud, which analyzes the sensor’s readings. Farmers download a smartphone app and receive notifications about field conditions so they can maintain optimal soil moisture levels.

The sensors also measure temperature and electroconductivity in the soil to determine salinity levels, which can help farmers with nutrient management and fertilizer application.

The result of all this monitoring, according to CropX, is healthier crops and improved yields for farms.

Sensors cost from $600 to $899 apiece and there is a $275 yearly subscription per sensor. Farmers own their own data, and anything CropX learns is anonymous and on an aggregate basis. But it’s these data insights that are the real play for CropX. Tzach wouldn’t go into specifics but said that eventually, the company will be able to “provide significant data to other industries and geographies.”

Perhaps pointing to one such industry, just yesterday it was announced that ICL, a global fertilizer company, made an investment in and formed a strategic partnership with CropX. Terms of the deal were not disclosed.

CropX does have some competition; there are quite a few sensors options and data generating platforms currently available to farmers. Teralytic‘s soil sensors help farmers manage fertilizer use (and monitor moisture), and Arable‘s Mark packs in 40 sensors to monitor moisture, ambient temperatures and more.

This raises the question, how many sensors and accompanying dashboards does a farmer need–or want? Pretty soon we’ll get the data on that.