The European Investment Bank (EIB) has provided a €15M venture debt loan, supported by the InvestEU programme, to CrowdFarming, a Madrid-based online platform for farmers seeking to sell directly to end consumers without intermediaries.
The EIB provides venture debt loans to innovative and disruptive early-stage companies in Europe, helping them bridge funding gaps between equity rounds and aligning with EU strategic objectives.
The deal was signed in Madrid by EIB Vice-President Ricardo Mourinho Félix and CrowdFarming CEO and co-founder Gonzalo Úrculo.
Ricardo Mourinho Félix says, “We are thrilled to support CrowdFarming’s innovative and sustainable farmer-to-consumer business model.”
“By financing CrowdFarming, we are not just helping to bring fresh, organic food directly from farms to the doorstep of consumers across Europe — in line with Europe’s green and digital priorities. We are also driving a shift towards a more sustainable and efficient food supply chain.”
“We are pleased to be backing this innovative company’s RDI activities, under the InvestEU programme, to scale up their potential to improve agricultural sustainability while enhancing employment and economic growth in rural areas of the European Union,” adds Félix.
Organic food directly from farmers
Founded in 2017 by Juliette Simonin, Moisés Calviño, and brothers Gabriel and Gonzalo Úrculo, CrowdFarming is a one-stop-shop platform connecting over 300 farmers directly with more than 500,000 families for the sale of organic food for a fair price.
The company claims its model shortens the producer-to-consumer chain by eliminating intermediaries and warehousing, resulting in fresher, untreated food, reduced food waste, lower CO2 emissions, and decreased energy consumption compared to conventional methods.
Gonzalo Úrculo adds, “Creating direct communication channels between farmers and consumers allows for greater awareness of the value of food and eliminates the demand for aesthetic criteria in the fruits we eat.”
CrowdFarming offers complete support, including website setup, logistics, customer service, training, and marketing.
Farms on the platform adhere to high sustainability and quality standards, with a focus on organic agriculture. CrowdFarming also serves as a key channel for pioneering farmers implementing regenerative practices that benefit the environment and biodiversity.
Capital utilisation
CrowdFarming says it will use the funds to accelerate the transition to a sustainable and fair food supply chain in Europe. This will also promote the adoption of sustainable and regenerative practices in agriculture, contributing to a more environmentally friendly food system.
Co-founder Gonzalo Úrculo says, “Having received the support of the EIB will enable us to expand the services and solutions for direct selling that we offer to farmers, transforming direct sales from a niche channel into a real consumption alternative for all Europeans.”
The EIB’s support for CrowdFarming is expected to create around 200 direct jobs over the 2023-2026 investment period. These jobs will encompass a range of roles, including RDI engineers, agriculture specialists, logistics experts, and more.
The deal is part of InvestEU’s focus on research, innovation, and digitalisation. It supports Europe’s green and digital transition and aligns with the Farm to Fork Strategy, which aims to create a fair, healthy, and environmentally friendly food system in Europe.
Brief about the InvestEU programme
The InvestEU programme is a critical funding mechanism for the European Union, leveraging public and private funds to support sustainable recovery and EU policy priorities like the Green Deal and digital transition.
It simplifies and consolidates EU financial instruments into three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal.
The Fund, supported by a €26.2B EU budget guarantee, enables financial partners to invest and mobilises at least €372B in additional investment, fostering economic growth and sustainability in Europe.
Commissioner for the Economy, Paolo Gentiloni says, “The InvestEU programme plays a vital role in helping businesses across Europe to access the financing they need.”
“Thanks to this agreement, we are fostering economic growth and job creation, while ensuring that an increasing number of Spanish companies will be at the forefront of establishing a more sustainable, innovative, and efficient food system.”
“This initiative is a good example of how we can further our efforts to achieve our environmental objectives and reinforce the EU’s competitiveness,” adds Gentiloni.
