InSoil Raises €120M for Regenerative Agriculture Finance

Estonia-based climate finance firm InSoil has successfully closed a significant €120 million senior secured credit facility, a substantial capital injection aimed at bolstering its support for agricultural small and medium-sized enterprises (SMEs) transitioning to regenerative farming practices. This strategic funding, provided by Pollen Street Capital, represents a major endorsement of sustainable agriculture as an investable asset class and addresses a critical financing gap within the sector.

The facility, underpinned by a guarantee from the European Investment Fund (EIF) through the InvestEU programme, will enable InSoil to extend mid-term debt capital to farmers implementing methods such as no-till cultivation, cover cropping, and reduced synthetic fertilizer use. This move is particularly timely as European agriculture navigates a new investment cycle, requiring modernization and enhanced soil health to build business resilience.

Laimonas Noreika, CEO and founder of InSoil, highlighted the pressing need for specialized financing in this area. "Farmers require capital to modernize equipment, improve soil health, and build more resilient businesses, yet specialized financing has been scarce," Noreika stated. "This facility allows us to meet that demand at scale and demonstrates that sustainable agriculture has become a viable asset class for institutional capital." InSoil's initiative directly confronts an estimated annual SME financing gap of €62 billion in Europe, as identified by the European Investment Bank.

This substantial financing round for InSoil arrives amidst a wave of recent investments in the European AgTech and regenerative agriculture space. Comparable recent financings include Seqana's €3.2 million for soil monitoring, Proba's €1.25 million for fertilizer-related Scope 3 reductions, and Feldwerke's €12 million for agri-PV infrastructure. These adjacent deals, collectively amounting to approximately €64.2 million, underscore a broader trend of increasing capital allocation towards climate-smart agricultural solutions.

Paul Varty, Investment Director at Pollen Street Capital, expressed confidence in InSoil's market position. "InSoil has established a truly distinct presence in European agricultural finance, combining deep industry relationships, rigorous credit assessment, and a proven track record," Varty commented. "With the EIF guarantee, the facility offers robust structural protection." Since its inception in 2020, InSoil has financed over 3,500 agricultural SMEs and has amassed one of the region's largest proprietary soil carbon datasets from over 15,000 soil samples, crucial for both its underwriting and climate impact measurement.

InSoil's business model integrates proprietary credit underwriting with measurable climate outcomes, including the issuance of soil carbon credits under the Verified Carbon Standard. The company's ambitious mission is to facilitate the removal of one gigaton of CO2 emissions through its agricultural finance activities, positioning itself as a key player in the transition towards a more sustainable and climate-resilient food system.