Is Capital Investment the Answer to the California Water Shortage?
After four years, it’s becoming clear the California water drought is not going away on its own. In April, CA Gov. Jerry Brown declared mandatory water restrictions for urban citizens for the first time in CA history. While restrictions and limited water use seem to be the most obvious answer at the moment, companies like Advantage Capital Partners are working on another, perhaps more long-term, solution: investment in agriculture water technology start-ups.
This month, Advantage Capital Agribusiness Partners invested $5 million in a precision irrigation management company called Hortau. Hortau has played an important role in the irrigation industry since its foundation in 2002. The company created a simplified irrigation system with a plant-centric focus. They have developed a soil sensing technology that allows growers to see the real-time status of their crops before a stress harms their growth. Now, with $5 million in financing from Advantage Capital Partners, Hortau will be able to develop and expand US operations into areas where their services are most needed, like California.
Advantage Capital Partners is an investment company dedicated to raising capital for underserved communities. This focus gives areas with limited access to investment capital an opportunity to grow. Advantage Capital Partners has invested over $1.9 billion into these communities, and continues to search for companies and opportunities that will have a long-term impact on prosperity and growth.
The $5 million investment in Hortau is a key example of how independent companies and parties can make an impact on issues facing our country like the California water shortage. While the government is limited to policies and restrictions, private and public investors can help facilitate and instigate change by investing in companies dedicated to solving problems. The partnership between Hortau and Advantage Capital is a great model for this type of relationship. If more influential companies like Advantage Capital Partners invest in innovative, driven, and (most importantly) needed ideas like those of Hortau, perhaps problems like the California water drought could be a thing of the past.