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Los Angeles-based agriculture finance startup ProducePay has raised a $2.5M Series Seed from Menlo Ventures, Arena Ventures, CoVenture, Red Bear Angels and Social Leverage. The company enables growers to get paid earlier by purchasing their produce at a 1 to 4 percent discount.
The company says it has financed $80 million worth of produce from growers in the United States, Mexico, Chile and Honduras since it launched in September. And again, according to Borquez Schwarzbeck, most of that money is getting reinvested in the farm. “Farming is becoming increasingly hard in the US, with the huge drought problems in California, and we have big companies buying a lot of farms,” he added. “Family farming is disappearing.” So in his view, ProducePay can help those farms stay competitive by “collateralizing assets you otherwise wouldn’t be able to.”
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