4AG Robotics Secures $40 Million to Expand Mushroom-Harvesting Fleet

4AG Robotics, a startup based in Salmon Arm, British Columbia, has successfully raised $40 million in a Series B funding round aimed at expanding the production of its innovative mushroom-harvesting robots. The company claims its technology can harvest mushrooms with precision comparable to human hands. This funding round, which closed in mid-July 2023, brings the total capital raised by 4AG to over $60 million.

The funding round was led by prominent AgTech investors, including the European B Corp Astanor and Cibus Capital from the United Kingdom. New participant Voyager Capital joined existing investors, such as InBC, Emmertech, and BDC Capital, which is part of the Industrial Innovation Fund. This financial backing is expected to bolster 4AG’s manufacturing capabilities and enable the company to roll out new features powered by artificial intelligence.

Expansion Plans and Market Demand

4AG Robotics has developed a mushroom-picking robot utilizing patented suction-cup technology, which automates the labor-intensive task of harvesting. CEO Sean O’Connor emphasized the importance of sufficient capital in the agricultural hardware sector: “You can’t build hardware in the agricultural space on a shoestring budget.” He noted that the company plans to enhance its workforce by adding 30 new positions in field services and customer success to its existing team of 78.

The demand for 4AG’s technology reflects a broader issue within the agricultural sector. According to the Canadian Agricultural Human Resource Council, approximately 60% of Canadian mushroom farms struggled to hire sufficient workers in 2022 due to the seasonal nature of the work and the challenging conditions associated with it. O’Connor pointed out that mushrooms require year-round harvesting, making labor recruitment particularly difficult.

The company has sold a total of 53 robots, with orders already filled until the end of February 2026. Currently, its robots are operational in markets including Canada, Ireland, and Australia, with growing interest from clients in the United States and the Netherlands. O’Connor remarked, “We’re seeing fleet expansion toward that fully optimized, fully automated farm, which is really exciting.”

Future Innovations and Financial Outlook

The latest funding will be allocated towards developing new AI-driven features that can further optimize crop yield management and disease detection. Last year, 4AG reported revenue of $2.5 million and aims to increase this figure to $7 million by the end of 2025. The company also raised $17.5 million in late 2023, showcasing its growth trajectory.

Founded in 1999 as TechBrew Robotics, the company initially provided custom robotics solutions across various sectors. It pivoted six years ago to focus exclusively on the mushroom industry and rebranded as 4AG Robotics in 2023. O’Connor, who previously served as managing director at Conexus Venture Capital, has been instrumental in steering the company toward its current path.

In light of the challenges faced by the Canadian AgTech sector in securing later-stage funding, O’Connor expressed optimism about the company’s growth. He noted that the recent financing round was oversubscribed, requiring 4AG to turn away investors to maintain favorable terms. The company is also considering raising an additional $10 million in debt financing to support its expansion efforts.

Looking ahead, O’Connor indicated that while the company is focused on mushroom harvesting for now, there may be potential for future growth into other agricultural areas. “We constantly say we’ll be successful based on what we say ‘no’ to,” he explained. For the time being, 4AG Robotics is committed to revolutionizing the mushroom harvesting process with its cutting-edge technology.