AgFunder targets $5m raise for maker of VetGun

The company hopes to use the funding to expand into pharmaceuticals and enter markets outside the US.

Online investment platform AgFunder is launching a funding round for SmartVet, an agri-pharma company targeting $5 million.

SmartVet company produces a delivery method for parasite control treatments that reduces the amount of labour involved in treating livestock. The VetGun applies medication externally to cattle via a carbon dioxide-propelled capsule that bursts on impact with the skin of the cow. The company claims that the ease of application allows livestock managers to optimise the timing of treatments.

The company plans to use cash from the raise to bring new products already under development to market. It is also applying for Food and Drug Administration approval of a pharmaceutical line and plans to expand its operations outside of the US once it gains approval, according to a press releasee.

SmartVet closed a $5 million private placement round in November 2014 year for research and development of new products, according to the company website.

AgFunder is an online investment platform that allows accredited investors to invest directly in agtech and agribusiness startups. Since closing its first deal in 2014, the company has raised more than $13.8 million in funding for 12 agri companies with raises for five other companies in progress, according to the AgFunder website. In this latest launch, the company makes good on predictions AgFunder co-founder Rob Leclerc made to Agri Investor last year that it would expand into later-stage investment opportunities in 2015.

“SmartVet is our first growth stage opportunity for investors,” said Leclerc in a statement. “The company has had impressive traction since its product launch in February 2014. The management team has a bench of industry veterans. That’s been key to their successful product development and execution.”