Propagate Ventures

Propagate (formerly Propagate Ventures) is a US agroforestry company that helps farmers and landowners integrate fruit, nut and timber tree crops into existing agricultural operations. Its work covers species selection and farm design, sourcing of improved tree genetics and project inputs, site preparation and planting, project monitoring, and connection of growers to buyers and financing. Systems it installs include alley cropping between tree rows, silvopasture, riparian buffers and reforestation for carbon sequestration and runoff mitigation, on projects ranging from roughly 5 to 2,000 acres.

The business is organized as an ecosystem of three operations: Overyield, a SaaS platform for agroforestry project planning, production and profitability forecasting; Propagate Management, which handles commercial agroforestry development and provides access to a vetted network of planting, maintenance and soil-preparation partners; and Agroforestry Partners, which supplies equity investment for agroforestry transitions. Management has said Overyield cut the time needed to map an installation from about 80 hours to about eight.

Crops span chestnuts, black locust timber, apples, blackcurrants, elderberry and other shrub fruits, mixed orchards and native hardwoods, with stated work also underway on Mediterranean and tropical crops. Representative projects include Hill Farms in Kentucky and Ohio, where 1,850 acres of corn and soy were transitioned to chestnut and hay alley cropping and which the company describes as the largest agroforestry operation in the US; Cold Spring Farm in New York (4,200 black locust trees on fallow land); Wild Fox Farm in Pennsylvania (nearly 20,000 trees across three farms as working riparian buffers); Bloom Farm in Pennsylvania (55 acres converted to chestnuts and mixed silvopasture); Handsome Brook Farms in Kentucky (silvopasture for poultry and elderberries); Great Wonder Farm in New York (19,000 trees and shrubs in an alley cropping system); and Ramble On Farm in New York (30 acres of black locust, chestnut, fruit orchards and hardwood riparian restoration).

Founding story

Propagate was launched in 2017 by three friends whose respective health journeys led them to regenerative agriculture; examining the food system, they questioned why tree crops were not more widely planted given their benefits for soil organic matter, water holding capacity, shade and wildlife habitat. Co-founder and CEO Ethan Steinberg has described the founding insight as recognizing that trees were an under-addressed pillar of regenerative agriculture, and that the limiting factor for farmers was economic — cash flow, market activity and access to financing rather than interest in the practice itself.

Business model

Propagate sells services and software to farmers, landowners and agribusinesses across three lines: agroforestry planning and forecasting software (Overyield), commercial agroforestry development and project implementation (Propagate Management), and equity capital for agroforestry transitions (Agroforestry Partners). Rather than requiring farmers to take on debt, the company structures access to outside investment so that trees are financed as on-farm assets, a mechanism its CEO compares to third-party financed solar arrays on farmland. Revenue-generating activities span technical assessment, site preparation and planting, supply of improved tree genetics and project inputs, and ongoing project monitoring.

Revenue derives from paid services and products to landowners and farm operators — technical assistance and site assessments, site preparation and planting, tree stock and project inputs, and project monitoring — alongside subscription access to the Overyield planning software and participation in agroforestry project financing and development through Propagate Management and Agroforestry Partners.

Traction

Company materials state partnerships with 35 American farms since 2018. At the time of the seed round the company reported around 20 projects across the Northeast and mid-Atlantic with plans to break ground in the Midwest. By the Series A it reported doubling business year over year, 37,000 trees planted in the prior year and roughly 100,000 trees planted cumulatively against 760,000 planned. Individual projects include 1,850 acres converted at Hill Farms, nearly 20,000 trees at Wild Fox Farm, 19,000 trees and shrubs at Great Wonder Farm, and 4,200 black locust trees at Cold Spring Farm. Headcount is listed at 11-50.

Latest developments

In its most recent reported financing, Propagate raised a $10 million Series A led by The Nest, with participation from AgFunder, the TELUS Pollinator Fund for Good, Techstars and Neglected Climate Opportunities. Proceeds were earmarked for continued rollout of the Overyield forecasting tool and for hiring additional technical experts. At that point the company reported doubling its business over the prior year and planting an additional 37,000 trees, bringing cumulative plantings to roughly 100,000 of 760,000 planned.