Halter, the Auckland-based maker of a “smart collar” for fence-free dairy farming, says it has raised $32 million in a Series B round led by Australian VC firm Blackbird Ventures.
The money will be used to fund expansion in Auckland and Waikato – where the company is now offering “live demos” for farmers who want to trial its product, and to take staff from 60 to 115.
- Rocket Lab’s Peter Beck writes big cheque to back 21-year-old’s startup
Halter was the brain child of Rocket Lab mechanical engineer Craig Piggott – who grew up on a dairy farm in Waikato.
The company’s system involves a Bluetooth and GPS-enabled collar, which deliver an audio signal into a cow’s left ear – or right ear, depending which way you want them to go – to allow virtual herding, controlled by a smartphone app. In theory, the farmer controlling the app can be anywhere. The solar-powered collars system, independently reviewed by the Ruakura Animal Ethics committee, can also detect unusual movement – indicating if an animal is lame or on heat.
“At first I worked on Halter as a side-hustle, on weekends and evenings,” Piggott says. “When I told Peter, he was super supportive.”
The young entrepreneur says he in part got his vision for Halter from his upbring, and in part from working for Rocket Lab. “Being around Peter was inspiring, he showed you can reinvent an entire industry – and in dairy farming there are a lot of problems and a lot of opportunities.”
Piggott left Rocket Lab to found the four-person Halter in 2016.
Beck provided mentorship, joined Halter’s board and threw in funds for the startup’s $8m Series A raise, which was also backed by Ice Angels and Sir Stephen Tindall. Piggot tells the Herald that the existing investors, including Beck, also participated in the Series B round.
A post-money valuation hasn’t been given for Halter’s Series B round and stakes are no longer public. Like Rocket Lab before it, its registration has been moved to the US. But Piggott says the $32m “definitely did not buy a majority stake.”
A commercial launch was originally scheduled for 2020, but Piggott told the Herald that Covid had caused delays. The startup also refined its business model during the lockdowns, deciding it would give the collars free to farmers to limit their capital risk, and instead charge a monthly fee for its software (Halter hasn’t published its monthly rates, but will quote for different farms).
“By the end of the year, we expect to add 115 new jobs across all aspects of our team. We’re currently deploying Halter technology on a new farm in the Waikato every couple of weeks, but we’re going to increase this,” Piggott says.
“Our hiring drive means for the first time Waikato farmers are able to apply to view a live demo of our leading-edge technology in action on farm. We also hope to deploy in other New Zealand regions in the coming months.”
Samantha Wong, founder and partner of Blackbird Ventures and new Halter board member, says: “The technical breakthroughs the team has achieved not just on the hardware, but machine-learning and software, are cutting edge. There is huge growth potential for Halter to completely change the industry for the better.
“Blackbird’s inaugural New Zealand fund was built to back Aotearoa’s ‘wild hearts’, founders doing their life’s work with the ambition to be the best in the world, not just the best in our region. Halter fits that description to a tee. When the opportunity to lead the company’s Series B presented itself, we were excited to lean in and make it one of our biggest initial investments to date,” says Wong.
As far as export opportunities are concerned, Wong and Piggott are both quick to point out that if Halter helps just half the dairy farmers in the Waikato it will be a billion-dollar company.
“I’m a Waikato dairy boy originally. So, it’s a source of pride to empower New Zealand to deliver the best dairy in the world, that’s carbon neutral and zero harm. Milk production doesn’t have to be counter to the sustainability of our people, animals and land. It’s just about how you do it,” says Piggott.
Halter was the first in a series of investments for Beck, who went on to back the new $10m Offset Ventures Deep Technology fund, and who last week revealed he had put half a million into a satellite solar panel startup founded by three Auckland students.
Source: Read Full Article