Sayonara, 2025! 👋🏼
Trailhead's take on 2025, PortCo news, and much more!
Alas, the end of 2025. Whether you liked this year or not, there’s no doubt that it has been yet another year for the books. This year has also encompassed the proverbial “tale of two cities” across many of the fronts we focus on, including the performance of the public vs. private markets, where venture dollars have been allocated to (AI vs. everybody else), early-stage vs. late-stage, and even the K-shaped economy we’ve found ourselves in… It’s the kind of landscape where you have to tread cautiously because you never know which “city” other people are living in at the moment, while you’re also trying to navigate yourself to the right one(s).
In our “city” of early-stage Food & Ag investing specifically, quality companies are continuing to successfully raise capital, even while a record-breaking 52% of all VC funding went to GenAI, as of the TTM ending Q3’25. We’re seeing this success firsthand via the 10 of our portfolio companies that raised capital this year at mark-ups that also brought on new outside investors. Each of these companies has shown solid underlying company performance and achievement of milestones that enables regenerative agriculture to become even more mainstream. And yet even our “city” still isn’t one-dimensional, given that early-stage companies who aren’t hitting the necessary milestones are struggling to fundraise, as gone are the days of 2021 where capital flowed easily to all startups.
For our team specifically, we’re also feeling the “tale of two cities”, as we’re going through our own fundraise. We’re simultaneously seeing tremendous progres throughout the portfolio and a double-down of commitment to regenerative agriculture with the goal of improving our broader food & ag systems (this is coming from both sides of the political aisle, which is even more encouraging), while at the same time facing a challenging fundraising environment given historically low DPI in the private markets. Safe to say that it’s been a fascinating year navigating all of this, but we remain confident and optimistic as we steadily continue to bring on existing and new limited partners to our Trailhead Capital Regeneration Fund II. We’re excited to continue reporting on this front throughout 2026, so stay tuned!
And for all of us, as nobody has been exempt from navigating the complexities of this year, just know that a smooth sea never made a skilled sailor (-FDR), so we genuinely hope you take that with you into the holidays and the new year to have an even better and brighter 2026!🥂
Thank you and Happy Holidays,
The Trailhead Team
Recent Trailhead News
We welcomed Jieh Greeney and Wyman Howard III as Fund II Advisors!
Jieh has an extremely robust background in sustainability stemming from her time with McKinsey, Tiffany & Co, Food52, and FELFEL. She’s an all-around intelligent, charismatic, and passionate leader in our climate space, who will be a tremendous asset to strengthening our Trailhead network! Wyman Howard III is a retired Rear Admiral and Navy SEAL Commander. He has keen insight on the geopolitical landscape, lessons from leading at the highest levels of the military, and how food security has become a matter of national security.We hosted our Annual General Meeting this past October in Boulder, CO.
Over 90 LPs, founders, farmers, and friends joined us for two days of connecting and learning at Yellow Barn Farm in Boulder, Colorado, which is a regenerative farm and living example of the regenerative practices we’re championing. The AGM had a packed agenda full of thoughtful discussions, original content, and a lovely farm-to-table (literally, on the farm) dinner.
We had a very successful New York Climate Week, where we hosted a kickoff event with the Riverstone team. Harrison Ford even made an appearance to say “forget about space, we need to live here” (which says a lot coming from Han Solo himself!). Our Startup Showcase event that featured 5 of our PortCos giving business updates had over 1,000 people register to attend. Stay tuned for next year’s events!
Trailhead GPs Mark and Pete were on the road to speak about investing in RegenAg. GP Mark Lewis was at RFSI in Minneapolis to speak about “Investing Across Asset Classes & Return Spectrums in Regenerative Agriculture & Food”, and GP Pete Oberle was recently at the PEI Conference in NYC to speak about the “Future Food Systems: An Investors’ Guide.”
Portfolio Companies in the News
Our portfolio companies are continuing to make significant strides from both a financial and environmental-impact standpoint, which are increasingly being recognized in the news.
Pantheon Regeneration announced a strategic investment from Microsoft’s Climate Innovation Fund, allowing them to scale one of the first commercial U.S. peatland restoration projects that will help restore carbon-dense wetlands and generate high-quality carbon removal credits.
Funga was featured in Forbes highlighting their partnership with Netflix, in which Netflix has committed to buy carbon credits generated through Funga’s innovative fungal restoration technology for the next 11 years.
Avalo and Coca-Cola announced their partnership to decarbonize sugar through Avalo’s AI-driven plant breeding program. Avalo is working to breed sugarcane that is less reliant on water and fertilizer.
Mad Agriculture and Whole Foods Market’s “Wilding Initiative” surpassed their $1 million goal to help rebuild biodiversity across U.S. Farmland. This is a three-year initiative that will restore over 1,000 acres of marginal cropland in Wisconsin’s Driftless Area into thriving native ecosystems. In collaboration with Whole Foods Market, the pilot will restore wildlife habitat in ways that support farmers and strengthen the resiliency of America’s farmland.
Fractal has earned a strong vote of confidence from Big Tech (Cisco) as it works to expand regenerative farming. The Cisco Foundation’s Regenerative Future Fund is backing Fractal Ag’s Farmer Agriculture Regenerative Management (FARM) Fund, an investment initiative that supplies essential equity capital to help farming operations grow.
SWARM Engineering spoke on a panel discussing “Precision Agriculture in Mexico: Harnessing Automation & AI to tackle Labor Shortages” at the World Agri-Tech Mexico conference in Mexico City. It’s great to see our portfolio companies continue to expand their international footprint.
Edacious and Regenerative Organic Alliance have launched a project showcasing the nutritional value of regen ag. Per Edacious CEO Eric Smith, “With Edacious and the Regenerative Organic Alliance, this data becomes more than numbers: it becomes a story about how regenerative organic systems deliver measurable nutritional benefits.”
Founder Spotlight Series
The real champions here are the amazing founders of our portfolio companies, who are dedicating their lives to the mission of innovating the food & ag systems to help implement regenerative agricultural practices for the betterment of us all! In this Founder Spotlight Series, we’ll give you a glimpse into what motivated the founders to start their companies, their day-to-day schedules, and their future ambitions.
This go-around, we’re excited to introduce Brandon Chi, CEO of Crop Diagnostix. For decades, farmers have managed crop health with traditional tools such as plant tissue sampling and imagery. But these tools are reactive, not proactive – they measure crop stress after symptoms appear and the damage has already been done. Crop Diagnostix uses RNA and AI to reveal the invisible stresses inside the plant, weeks before symptoms occur, allowing farmers to apply the right inputs at the right time. They have developed an RNA Test that is 3-4 weeks more predictive than any test on the market and provides a comprehensive view of plant health, including nutrient stress, disease pressure, drought stress, and yield velocity. Their RNA Test can also measure the efficacy of fertilizer and crop protection applications in-season, helping farmers and agronomists make better input decisions.
Q&A with Brandon Chi, CEO of Crop Diagnostix:
How did the idea for Crop Diagnostix first emerge? Was there a defining moment when you realized the need for a molecular-level approach to plant health?
When I first met my cofounders Joseph, a PhD plant biologist, and Amitesh, a PhD AI scientist, they shared the idea of bringing RNA and AI technology into agriculture. My first question was, “Have you talked to any farmers?” We spent that entire summer meeting with farmers and agronomists, spending time on my brother’s farm in New York and my wife’s 4th generation family farm in Mississippi. Those conversations made the opportunity very clear - we could use plant RNA to reveal the invisible stresses of the plant, allowing farmers to stop guessing and apply the right inputs at the right time.
Did you always see yourself becoming a founder, or did your journey into entrepreneurship happen unexpectedly?
In all of my business school applications, I wrote that I wanted to become a ClimateTech entrepreneur. Meeting my cofounders during business school was incredibly fortuitous. Building this company with them and working toward a sustainable planet while improving farmers’ livelihoods has been more fulfilling than I ever expected.
What have been some pivotal scientific or commercial milestones for Crop Diagnostix so far? Which accomplishments make you most proud?
Our team often jokes that we move so fast that we forget to stop and celebrate our milestones:
➡ We have built presumably the largest potato RNA dataset in the world and created the first AI model in agriculture that predicts plant stresses four weeks before symptoms appear.
➡ In our pilots, Crop Diagnostix reduced inputs by 23 percent while increasing yield by 8 percent and improving crop quality. That translated into an average profit increase of $720 per acre for the grower.
➡ Just yesterday, we converted one of the largest potato growers in the country from a free pilot to a paying customer.If we asked your team, what would they say makes Crop Diagnostix a special place to work?
A molecular biologist, an agronomist, an AI scientist, an MBA, a software engineer, and a bioengineer walk into a room. This is a normal day at Crop Diagnostix. Our team brings together expertise across molecular biology, agronomy, AI and machine learning, software, and lab operations. The cross functional learning and collaboration is what makes this place special. Every Friday we run a technical meeting where one team member presents a topic or project and everyone contributes ideas. There is no judgement and no bad ideas. That culture of open, cross-functional problem solving really defines us.
How do you see Crop Diagnostix evolving over the next five years? What role do you hope it plays in transforming regenerative agriculture?
We believe in a future where every field receives the right inputs based on what the plant actually needs. Over the next 5 years, Crop Diagnostix will evolve from a diagnostic platform to a data platform, leveraging our wealth of genomic data to provide insights across the industry, so that every farmer can plant the optimal seed, apply the right inputs, and maximize yield and sustainability on every acre.
What does Trailhead’s support mean to you at this stage of your journey?
Trailhead made a bet on us at the earliest stage, co-leading our seed round and providing strategic advice and connections when we needed it the most. Trailhead has become a household name in agriculture and VC, and having the backing of the Trailhead team sends a very strong signal. We could not be more grateful for their continued support (especially Nick, who probably hears from us more than he would like)!
What We’re Reading
San Francisco has filed a first-of-its-kind lawsuit against major food manufacturers, accusing them of knowingly producing and marketing ultra-processed foods that have fueled a public health crisis and harmed consumers’ health. Who’s to say how this will ultimately play out, but at the very least, we see it as great boost to the focus on cleaner, healthier, regeneratively sourced foods.
For a heartwarming short video that highlights the power of healthy & delicious food in bringing
peopleanimals together, check out this holiday commercial from French supermarket Intermarché. ❤️We love seeing Regen Ag increasingly make its way into the mainstream news… especially reaching more rural areas now! Here’s an easy-to-read news report from the local NBC news channel in Washington state.
The Trailhead Jobs Board
Looking to work in the world of startups, AgTech, and regenerative ag? Trailhead’s portfolio companies are hiring!
Check out the roles on the Trailhead Job Board.