CNBC recently released its 2020 Disruptor 50 list, which comprises the top 50 private companies in the world that are positioned to become the next class of multi-billion dollar giants.
Landing the third spot on CNBC’s Disruptor 50 list was Indigo Ag, a $3.5 billion agrotech company using AI and machine learning technologies to advance the field of agronomics and help make healthier farms across the U.S.
Looking at the big picture, this is the right company, using the right technologies, in the right space, at the right time.
So invest in Indigo Ag as soon as you can.
I say “as soon as you can” because Indigo Ag isn’t publicly traded. Nor is there any IPO news swirling around the company.
But a company like this, growing so quickly with such enormous upside potential in the huge U.S. agriculture market, will inevitably be acquired or go public.
If it’s the latter, watch for the upcoming Indigo Ag IPO. The potential future Indigo Ag stock will be something you’ll want to buy early.
The Space & Timing Are Perfect
When it comes to Indigo Ag, the context surrounding this company is perfect for disruptive growth over the next few years.
The timing is perfect. One of the biggest trends over the past decade has been a rise in consumer awareness of sustainability and eco-friendliness. A byproduct of this trend has been a secular rise in how much consumers care about where their food comes from, with 8 in 10 consumers saying they check the origin of foods when buying, and more than 50% of consumers saying that ingredients are the most important attribute of a food product (not brand).
The Covid-19 pandemic has, of course, accelerated this trend. In a world that where cleanliness and health are now front-and-center, consumers will only become more conscious about healthy food sourcing.
Beyond the timing, the space is perfect, too. U.S. farm quality and quantity have both steadily declined over the past several years. These farms have accounted for 8% of greenhouse gas emissions in the U.S since 2010. And yet, despite accounting for 80% of all freshwater consumption in America, U.S. farms lose 20 billion pounds of produce every single year. U.S. farming profit margins are shrinking in part because of this waste.
In other words, the U.S. farming industry is one which isn’t going away anytime soon, but which is in desperate need of an overhaul to improve sustainability and efficiency.
Breakthrough Solutions to Huge Problems
Indigo Ag is leveraging next-gen, breakthrough solutions to simultaneously improve the sustainability and efficiency of U.S. farms, while also accommodating rising consumer demand for healthy food sourcing.
Specifically, Indigo Ag is utilizing advanced AI and machine learning techniques to create a revolutionary agronomics platform that boosts farmland sustainability and productivity through next-gen microbiome treatments, digital regenerative content, time-series satellite imagery, advanced crop monitoring and data analysis, and grain quality testing. In sum, these solutions help create healthier farms which produce healthier foods.
At the same time, Indigo Ag has built out a marketplace through which food buyers can buy this healthy food from healthy farms, through a trusted, high-quality channel. Obviously, food buyer demand for healthier foods will rise as consumer demand for healthier food rises.
In this sense, Indigo Ag is a disruptive AI agrotech company which is essentially a pure-play on the healthy food and farming megatrend.
That is, as rising sustainability and cost pressures force farms to become healthier and more productive and as consumers increasingly demand healthier food from healthier sources, Indigo Ag’s importance and reach across the U.S. farming and foods industry will grow exponentially.
Huge Potential Upside
The U.S. farming industry contributes more than $100 billion to the U.S. economy every single year.
Indigo Ag is on the cusp of hugely disrupting that $100+ billion industry over the next 5 to 10 years.
The company has a valuation of just $3.5 billion today.
Sure, by the time the company goes public (if that does ever happen), Indigo Ag’s IPO valuation will be well north of $3.5 billion. Both because of time and because of growth. It will likely be north of $10 billion.
Still, at that point it’ll be an approximately $10 billion company disrupting a $100+ billion space. That implies huge growth potential — especially since, when the company IPOs, it will likely be cash flow positive.
The last memorable cash flow positive growth company to IPO? Zoom (NASDAQ:ZM). We all know what has happened to ZM stock over the past year.
Bottom Line on Indigo Ag
Indigo Ag is a disruptive AI agrotech company with huge upside potential over the next few years thanks to the healthier farms and foods megatrend.
As such, while this is still a private company, investors should keep Indigo Ag on their radar. An Indigo Ag IPO is likely within the next few years. When that IPO happens, investors will want to invest in Indigo Ag stock early.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks