By Daniel Lanyon on Thursday 26 May 2022
The fintech for farmers helps food producers avoid price volatility.
Stable, a fintech founded by the son of a Somerset farmer helping businesses hedge exposure to commodity price volatility, has raised a $60m Series B round of funding.
Rich Counsell founded the fintech in 2017 to help farming businesses from an old cow shed on his family’s farm.
“Hedging is seen as complex and risky to most business owners, yet the benefits of bringing stability and predictability to an income statement shouldn't be reserved for giant multinationals and sophisticated traders. Businesses of every size, sector and location should have the ability to understand and manage their price risk so they can invest in the future with confidence.
The company lists overr 500 untraded commodities that can be hedged on the platform. It says it uses data science to lower the costs of ‘hedging’ the risk against price rises using the futures markets.
Farmers can customise a contract to insure themselves against volatile prices with payouts automated.
Food price volatility has been increasing of later owing to the Russian invasion of Ukraine, in particular its blockade of grain exports from the port of Odessa.
The move prompted the World Food Programme, a UN organisation, to warn that a global famine may occur.
Just under half (44 per cent) of the world's supply of wheat, sunflower and rye comes from Ukraine,
Stable operates in NYC, Chicago, London, Singapore and Bermuda. The $60m round was led by Acrew and also included Greycroft, Notion Capital, Syngenta and Continental Grain.
Acrew’s Vishal Lugani will join Stable’s Board of Directors.