Investing in Agrifood: EIF Backs €100 million Irish agricultural innovation fund

The European Investment Fund (EIF), part of the EIB Group, today confirmed a commitment of EUR 25 million to Yield Lab Europe Fund 2, a pan-European early-stage venture capital fund targeting innovative agrifood technology companies. The announcement was made during a visit Dublin by EIB Vice President Ioannis Tsakiris for the Ireland-EIB Financing Group ministerial meeting.

The EIF anchor commitment, backed by InvestEU, supports a fund expected to mobilise EUR 100 million for new investment in the sector, with 30% being deployed in Ireland and the remaining capital will be deployed across Europe.

Peter Burke TD, Minister for Enterprise, Tourism and Employment of Ireland: "This is excellent news for Ireland's agrifood sector and a powerful recognition of the exceptional depth of talent and innovation that we have developed here. The fact that 30% of a major new pan-European fund is targeting Ireland speaks volumes about our ecosystem's global standing. Sustainable food production is one of the defining challenges of our generation — and it will be solved by the kind of early-stage innovators that Yield Lab backs. I warmly welcome the EIF's commitment and look forward to seeing the next generation of Irish agrifood champions supported, scaled, and celebrated on the European stage."

Managed by Yield Lab Europe — one of the few dedicated pan-European agrifood venture capital investors with a proven track record — the fund will back Seed and Series A stage companies developing transformative technologies across animal health, alternative proteins, aquaculture, crop and soil health, horticulture, precision agriculture, and the circular economy.

"Agriculture is central to our food security, our climate commitments, and the long-term competitiveness of the European economy — yet it remains one of the most underserved sectors in the venture capital landscape. By anchoring this fund, we are not only backing a proven and highly capable team; we are sending a clear signal to the wider investment community that sustainable agrifood technology is a strategic priority for the EIB Group. I am particularly pleased that Ireland — a country with a proud and globally respected agricultural tradition — will be a primary beneficiary, with 30% of investments targeted here."

David Bowles, Managing Partner, Yield Lab Europe said "Securing the EIF as our anchor investor for Fund 2 is a landmark moment for Yield Lab Europe and for the wider agrifood innovation ecosystem across the continent. Our first fund demonstrated that early-stage investment in agrifood technology can deliver both strong financial returns and measurable environmental impact. With Fund 2, we are doubling down on that conviction — with a broader mandate, a deeper and more geographically diverse team, and a laser focus on the three structural barriers that have held back sustainable agriculture for too long. Ireland has produced world-class agrifood innovators, and with this fund we are ensuring they have the capital and strategic support to scale across Europe and beyond. The EIF's backing is not just financial — it is a mark of quality that opens doors across Europe."

Increasing financing for agrifood innovation.

Early-stage agrifood companies operating upstream in the value chain have historically struggled to attract venture capital, with the sharp decline in agrifood capital flows in 2021–2022 deepening an already significant gap.

Yield Lab Europe Fund 2 provides dedicated risk capital at exactly the stage where it is most needed — Seed and Series A — with initial tickets averaging approximately EUR 750,000 and two thirds of investable capital reserved for follow-on rounds.

Tackling the technology access gap

Farmers and agrifood companies across Europe face a widening divide between available agricultural technology and their ability to access, adopt, and scale it.

 By investing in B2B companies developing solutions in precision agriculture, crop and soil health, aquaculture, horticulture, and controlled environment agriculture, the fund connects cutting-edge innovation directly to the agricultural value chain — prioritising companies with proven products, strong intellectual property, and a clear commercial pathway.

Addressing the climate transition investment deficit

Despite generating approximately 25% of global greenhouse gas emissions, the agrifood sector attracts just 8% of climate tech venture capital investment  — a structural imbalance that Yield Lab Europe Fund 2 is designed directly to address.

 Yield Lab Europe Fund 2 is classified as an Article 9 SFDR fund — the highest sustainability classification — with a 90% Climate Action and Environmental Sustainability (CA&ES) investment target, among the highest of any agrifood fund in Europe.

A portion of carried interest is directly tied to the delivery of measurable impact targets, ensuring financial incentives and sustainability outcomes are fully aligned.

The new fund is registered and domiciled in Ireland, managed by Yield Lab Europe  Ltd, an alternative investment fund manager regulated by the Central Bank of Ireland.

Building on proven agrifood investment expertise

Yield Lab Europe Fund 2 builds on Yield Lab Europe Fund 1, a EUR 55 million fund established in 2019 which completed 32 investments across eight countries, achieved a positive return, and saw 43% of portfolio companies feature female promoters.

Portfolio highlights include Auravant (precision agriculture across 11 million hectares), Glasport Bio (a slurry tank additive scientifically proven to reduce methane emissions), and Micron Agritech (reduced medication in over 11,000 livestock).

About Yield Lab Europe

Yield Lab Europe is a pan-European venture capital fund manager dedicated to early-stage agrifood technology, with presence in Ireland, France, the Netherlands, Luxembourg and Switzerland. Part of the global Yield Lab network.

EIB Group 

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world.

In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union.

Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs. 

High-quality, up-to-date photos of our headquarters for media use are available here.

InvestEU 

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal.

The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.