Ag-tech startup Strella secures $4.25M to combat food waste

Seattle-based agricultural technology innovator Strella has successfully closed an additional $4.25 million in funding, bolstering its mission to significantly reduce food spoilage and waste across the global produce supply chain. This investment extends the company’s Series A round, bringing its total funding to an impressive $26.25 million.

Strella employs advanced Internet of Things (IoT) devices and machine vision to meticulously monitor the ripening process of fruits. By analyzing gases like ethylene, a natural plant hormone indicative of ripeness, and integrating this data with crucial information such as origin, packing date, and varietal type, Strella provides real-time insights to its partners.

Combatting Global Food Waste

The funding arrives at a critical time, as global food waste continues to be a staggering challenge. The United Nations estimates that approximately one-third of all food intended for human consumption worldwide is lost or wasted, resulting in annual economic losses of $940 billion. The situation is particularly dire in the U.S., where roughly 40% of edible food goes to waste each year, equating to $218 billion in economic impact.

Strella's technology offers a direct solution to this problem by enabling better decision-making at every stage of the supply chain. The ability to precisely track produce quality helps businesses proactively address potential spoilage, thereby minimizing waste and optimizing distribution.

From Philadelphia to the Pacific Northwest

CEO and co-founder Katherine Sizov initially launched Strella in Philadelphia in 2019. Four years ago, the company strategically relocated its headquarters to Seattle, seeking proximity to Washington's prominent fruit orchards and leveraging the region's strong tech ecosystem. Sizov herself has been recognized for her entrepreneurial spirit, earning a spot on Forbes' 30 Under 30 list.

The 19-person team currently serves customers across 26 countries, providing critical data for growers of apples, pears, avocados, and citrus. The company recently expanded its offerings to include kiwifruit, further broadening its impact on the fresh produce market.

Vision for a Seamless Supply Chain

Sizov articulates an ambitious vision for Strella: to become the definitive “system of record for quality in the food supply chain.” She envisions the company acting as the “guardian angels” of produce, ensuring its optimal condition as it moves from farm to consumer. Strella's comprehensive approach involves collaborating with all stakeholders, including farmers, produce packers, shippers, distributors, and retailers.

The next strategic phase for Strella involves integrating these disparate pieces into a unified platform. Sizov states the goal is to create a “one-stop shop for quality” that can tackle the pervasive issue of food waste at a much larger scale, driving efficiency and sustainability throughout the entire food system.

The recent funding round was spearheaded by SilverBlue, with significant participation from LeVert Ventures, Beta Milouot, and PeakBridge. This fresh capital will be instrumental in scaling Strella's operations, expanding its technological reach, and solidifying its position as a leader in ag-tech solutions for food waste reduction.

FAQ

Q: What is Strella's core mission?

A: Strella's core mission is to reduce food spoilage and waste within the produce supply chain by providing real-time quality monitoring and insights.

Q: How does Strella's technology function?

A: Strella utilizes IoT devices to measure ripening gases like ethylene and employs machine vision to monitor produce. This data is then analyzed by software alongside other factors to provide real-time condition reports.

Q: Who are Strella's main beneficiaries?

A: Strella serves all participants in the produce supply chain, including farmers, packers, shippers, distributors, and retailers, enabling them to make informed decisions that minimize waste.