The latest episode of Topline Talks sees us explore another one of our core sector specialisms – Life Sciences. For this discussion, we were joined by Mark Williams, Chief Financial Officer of sustainable food chain business and seeds company, Tropic. Mark talked us through his journey into the sector, from starting his career as a chartered accountant at KPMG and then entering the world of investment banking before moving into the sustainable foods industry ten years ago. In this enlightening conversation, he also discusses:
Tropic’s Vision. To use technology-led improvements to tropical agriculture to produce products more efficiently and improve the benefits to people and planet – including growers. Tropic has four lines of banana crop that have been developed with specific traits in mind, including the non-browning banana, the extended shelf-life banana and two disease resistant plants, all helping to reduce wastage and make the crop more sustainable.
The difference between gene editing and genetic modification. Gene editing is not GM as no foreign matter is brought into the plant. Instead, scientists edit the genome that is already there, redirecting some of the elements to develop certain traits in the crops.
From R&D to profitability. The challenges, considerations and timelines of moving an organisation from the research and development phase into a successful commercial business.
Fundraising and investors. For many companies in the life sciences sector, the lifecycle to profitability can take years and require a lot of capital to be successful. Investors need to be cognisant of that timeline to revenue, focusing on the big, longer-term picture.
Route to market. Once a product is developed, sustainable food companies can take a quicker route to market by licencing the product to other businesses. This would also mean they don’t have to spend the capital on the full product development and launch. However, it will generate a smaller revenue stream.
Maximising value. Tropic made the strategic decision to get full value through the value chain by not licencing the traits that they develop. Instead, they moved into the supply chain themselves, becoming a seeds company, developing traits and then selling the plants and seeds to producers. Whilst an extended timeline and increased capital is needed for this, investors can be keen to support such a move as it’s the best way to maximise the value proposition.
AI in AgriTech. AI brings large scale opportunities to the sector, especially in terms of bioinformatics, analysing data and using predictive data to drive development programmes. This use of improved data can have a significant impact on timelines to success, driving businesses towards revenue much faster.
Intention-based leadership. A powerful way of getting large teams to cooperate effectively is by ensuring everyone is clear on the common business objective – and they’ve all signed onto it. Whilst team members may then have the freedom to innovate in their areas, ultimately, each person in the business is contributing to the same end goal.
The importance of Project Management. A real risk with R&D businesses is that people like to explore. Tropic has made significant investments into an effective project management office, responsible for working with all areas of the organisation to scope out what is needed and the timelines required to deliver the objectives set by senior leadership. This dedicated resource supports teams, giving them the tools they need to achieve their goals.
The future of food in the next decade. What does it look like?
Season Three of Topline Talks sees us take a deep dive into our core sector specialisms, including Cleantech, Consumer, Private Equity, Social Housing, Charity, Life Sciences and Higher Education. The podcast still focuses on engaging conversations with senior leaders, offering insights and learnings from their careers, and providing tips and advice on how to succeed as a leader.
Tags: AgriTech, CFO, Life Sciences, Genetic Editing, Sustainability, Supply Chain, Leadership, AI, Technology, Food Chain, R&D, Research and Development
