Source.ag, the Amsterdam based developer of artificial intelligence software for Controlled Environment Agriculture (CEA), has raised $17.5 million in its Series B funding round. The investment reflects the increasing importance of applied AI in addressing the sector’s dual challenges, meeting the growing global demand for fresh produce while contending with a shortage of skilled cultivation experts.
The investment, led by Astanor with participation from seed breeder Enza Zaden and grower cooperative Harvest House, brings the company’s total funding to more than $60 million in just five years. The new funding round follows a phase of strong expansion marked by the deployment of Source.ag’s software through strategic partnerships and collaborations across Europe and North America.
Applied AI Driving Measurable Results in CEA
Founded in 2020, Source.ag has focused on practical AI applications designed to assist growers in their day to day operations rather than speculative or theoretical technologies. The company’s software is now active in over 300 greenhouses spanning 2,500 hectares across 18 countries. This operational scale contributes to the daily supply of fresh tomatoes, bell peppers, and cucumbers for approximately 40 million people.
Controlled Environment Agriculture has emerged as one of the most resource-efficient methods for addressing constraints such as land and water scarcity. However, its expansion has been limited by the need for specialized knowledge. Source.ag addresses this by digitizing cultivation expertise and centralizing data, functioning as an “AI co-pilot” for growers. The system enables precise yield forecasting, such as predicting tomato production with improved accuracy, and automates irrigation processes, enhancing overall productivity, quality, and efficiency throughout the value chain.
This Series B round confirms the industry’s belief in our vision: food chain innovation requires AI companies to partner closely with the industry. The grower is the core player, the one putting healthy food on supermarket shelves, and we build the solutions they need to excel. Our ambition is to sustainably feed everyone with sufficient fruits and vegetables. This investment confirms the market views us as the definitive AI partner leading the sector into the future.
Strategic Collaboration Across the Food Chain
The new capital will accelerate Source.ag’s product development and international expansion. The company plans to enhance its AI suite and strengthen its position as a trusted technology partner for global horticulture. Its collaboration with Enza Zaden and Harvest House underscores the broader strategic value of its platform across the food supply ecosystem.
Hendrik Van Asbroeck, Managing Partner at Astanor, highlighted the investment’s alignment with sustainability objectives: “Our objective is to make the food chain more sustainable, and Controlled Environment Agriculture (CEA) is a necessary technology to achieve this. Since our initial investment, Source.ag has demonstrated that AI is key to scalably delivering climate-resilient food production. They’ve successfully transformed AI from a promising theory into an indispensable operational platform for the world’s largest fresh produce growers.”
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Jaap Mazereeuw, CEO of Enza Zaden, emphasized the synergy between the two organizations: “By collaborating with Source.ag, we integrate a crucial data layer into our seed breeding. Source.ag’s AI strategies, combined with our varieties, minimize risk for the grower and ensure they maximize the potential of our innovative seeds. This is a joint commitment to helping our customers succeed in a rapidly expanding market.”
Jelte van Kammen of Harvest House added that Source.ag’s AI delivers tangible value to growers within the cooperative: “Our growers experience the value of Source.ag daily, from saving labor time to achieving better forecasting accuracy. That’s why we’ve been working closely with Source.ag for multiple years. We see Source.ag as a strategic partner that equips us to meet our growth targets and secure the competitive data advantage the evolving market demands. It is a direct investment in the sustainability of our cooperative and an efficient fresh produce chain.”
Scaling Toward a More Sustainable Food Future
With the Series B funding secured, Source.ag is positioned to expand its applied AI solutions across more geographies and crop varieties. By continuing to integrate domain expertise with advanced AI, the company aims to strengthen its role within the global horticulture ecosystem, supporting growers in enhancing efficiency, reducing resource dependency, and ensuring a stable supply of fresh produce for millions of consumers worldwide.