2021-06-06

The Reservoir - Danny Bernstein - June 6th, 2025

The working group meeting welcomed several new members from various agricultural and technology organizations, including representatives from government agencies, startups, and research institutions. Danny Bernstein from the Reservoir in California presented on their agrobotics initiatives and challenges faced by ag tech startups, particularly in specialty crops, while introducing their new venture capital fund and incubator program aimed at supporting early-stage companies. The conversation ended with discussions about testing environments, market opportunities, and potential collaborations, including plans for upcoming events and demonstrations in both California and Canada. 

New Members Join Agrobotics Working Group 

The working group meeting welcomed several new members, including Tara from Agriculture and Agri-Food Canada, Robert Burnett, Vinay from an agri-tech startup, Laura McNeil from Carib Dot Farm, and Dr. Rani Ramachan from AFC, as well as David Wells from NRC IRAP. The meeting began with introductions and brief descriptions of their backgrounds and interests in agrobotics and related fields. After the introductions, Dan introduced Danny Bernstein from the Reservoir in California, who was set to give a presentation on their work in agrobotics. 

Ag Tech Challenges and Automation 

Danny discussed the challenges faced by ag tech startups, emphasizing the need to balance persistence with innovation. He highlighted the difficulties Canadian companies encounter when entering the California market, particularly in specialty crops. Danny also addressed the lack of automation in specialty crop production, noting that only 2% of such crops are currently automated. He stressed the importance of integrating off-the-shelf components and customization to reduce costs and make robotics more accessible to farmers. 

Ag Tech Innovation Hub Launch 

Danny discussed the challenges faced by startups in accessing farms for testing their products, particularly in California where a farmer had a strict "zero tolerance" policy against plant destruction. He introduced the concept of "Reservoir Farms," a for-profit venture capital fund investing in early-stage ag tech companies, alongside a nonprofit incubator program. The company plans to establish three locations in California, focusing on creating dense hubs for ag tech innovation, with the first location being a 40-acre farm in Salinas, known for its leafy greens and strawberries. 

Ag Tech Collaboration and Growth 

Danny discussed a program aimed at supporting Ag Tech companies, emphasizing collaboration with OEMs, exposure to growers, and the goal of helping these companies achieve faster growth and capital efficiency. He highlighted the importance of culture fit, grower-led priorities, and selecting companies that can complement each other for partnerships. ChuckBaresich noted the need for a controlled environment for testing and emphasized the importance of not reinventing existing solutions. Robert inquired about Danny's perspective on the VC market in California, but the conversation ended before a response was provided. 

Local Ag Tech Development Urgency 

Robert and Danny discussed the growing interest and potential in Ag tech and Ag robotics, with Robert noting the increasing demand and Danny highlighting the need for a "new frontierism" approach rather than purely financial optimization. They explored the challenges of proving market sizes and the importance of developing local technology to capture economic value, with Danny emphasizing the urgent need to originate more technology locally. Robert inquired about Chinese competition in Ag tech robotics, and Danny acknowledged the dominance of Chinese companies in certain areas but expressed hope for more locally developed solutions. 

Ag Tech Incubator and Investment Strategy 

Danny presented details about an ag tech incubator program, explaining its structure and pricing model. He described how companies can access various levels of space and resources, with costs typically ranging from $15,000 to $25,000 per month. Danny also outlined plans for a new project focused on developing a more modern capital market strategy for ag tech, highlighting the current challenges in liquidity and investment opportunities in the sector. 

Agricultural Robotics and Market Expansion 

The meeting discussed real-time plantation analysis across the US and Canada, with plans for a tour in California in August. Danny provided contact information for a team email to coordinate visits and collaborations. The conversation touched on the high costs of farm equipment and the potential for agricultural robotics to serve other markets, such as construction or mining, to improve capital efficiency. Ian raised concerns about the rising costs of farm equipment and suggested exploring alternative uses for agricultural robots, like drones, to reduce expenses for farmers. Danny agreed that exploring adjacent markets and developing more cost-effective startups could help address these challenges. 

Agricultural Incubator Launch Update 

Danny shared updates on his agricultural technology incubator project in Salinas, California, which launched 5 days prior after a year of development. The project, which aims to bridge the gap between farmers and engineers, expects 12-15 startups in the incubator and is projected to be cash flow positive from day one. The group discussed potential support opportunities, including introducing the concept to international partners and establishing bilateral exchanges between California and other regions, with Joe offering to help connect resources and share knowledge. 

Agribotics and Market Innovation Strategies 

Danny discussed the potential of mobile locations for agribotics, emphasizing the need for density in ag tech hubs to foster competition and innovation. Robert highlighted the importance of developing a more liquid market for farmers to adopt and exit technologies, suggesting financial innovation could help share risks and rewards. The group reviewed upcoming demo days and events, including a showcase at the University of Waterloo and an Agri-food 2050 event in Niagara Falls. 

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