As this season suggests, we take this opportunity to reflect back on the sowing we have done over the past few years. While the macroeconomic environment has been challenging, Serra portfolio companies continue to make very good progress. We anticipate a bountiful harvest in the months ahead. We are grateful for all of our investors, colleagues, and portfolio company teams who make this possible -- thank you for being part of the Serra story. See below for the latest at Serra!

As we near the final investor closing of the Serra Capital Ag & Food Tech Fund II, potential limited partners should consider three compelling reasons to participate:

1. Great Market Timing

2. Tax-Free Capital Gains!

3. Excellent Visibility into the Portfolio

Great Market Timing

From 1995 to 2019, venture capital delivered the highest long-term returns among major asset classes. The more recent macroeconomic environment has been quite challenging for venture, resulting in more modest returns. Yet it’s proven that some of the top performing venture capital vintages have come from or right after tense economic conditions (for example, 2008-2012). At Serra, it is our conviction that the current environment is one of the most favorable for venture investing we have ever seen.

Tax Free Capital Gains!

The Qualified Small Business Stock (QSBS) tax exemption, improved in Congress’s most recent tax bill, is a major differentiator for the Serra Capital Ag & Food Tech Fund II, along with other venture offerings. Serra will invest most of the Fund in companies that qualify for QSBS tax treatment. If an investment is held for 5 years, 100% of the capital gain will be tax free at the federal level subject to a $15 million cap (or 10 times the stock basis). Many states follow the federal guidelines as well. Eliminating capital gains tax is quite a fantastic return-booster for venture investors!

Excellent Visibility into the Portfolio

Team Serra has been hard at work deploying capital from this Fund since mid-2024.  Investors entering the Fund at this time get the benefit of seeing how 40% of the Fund has been constructed. There are eight companies currently in the portfolio, each summarized below.

The full pitch deck of the Fund can be accessed here. To request a Private Placement Memorandum, contact tim@serraventures.com

Serra Ventures sponsored and participated in the Chicago Venture Summit: Future of Food, reinforcing the region’s position as one of the world’s most important hubs for food, agriculture, and supply-chain innovation. Associate Drew Beard introduced CEO Charles Smith of IMIO, a Serra Ag & Food Tech Fund II portfolio company, to Chicago’s ecosystem of corporate partners, investors, and research institutions. IMIO is an emerging ag-biotech innovator currently headquartered outside the region. The company has developed a novel biological nutrient that produces up to 5X ROI in comparison to chemical solutions.

“Chicago and Illinois as a whole sit at the center of the nation’s food-value chain, with an unmatched concentration of manufacturing, logistics, and ag-tech capabilities,” said Drew Beard. “We’re thrilled to bring an innovative company like IMIO into this conversation. For Serra, engaging in this investment community is essential to scaling the next generation of food and ag-tech solutions.”

A presentation was also given by Ragoth Bala, CEO of Serra portfolio company Cumin Club, another Chicago native company. Cumin Club offers great tasting, vegetarian Indian meals ready in 5 minutes without additives or preservatives. Its authentic Indian meals are curated by Indian chefs and loved by consumers everywhere.

Serra Ventures is proud to once again sponsor this event, a relationship that dates back to 2022. The Future of Food event has truly been an integral part of building Serra’s brand in the Chicagoland area, as well as providing a great stage for our portfolio companies.

For the second year in a row, Serra is opting to go completely virtual for its annual LP meeting, offering Limited Partners a chance to listen in on the funds that best apply to them. Instead of one longer meeting, we are offering five individual fund meetings, each 1.25 hours in length. Each meeting will cover information from that respective fund, a discussion of the macroeconomy and state of venture capital and will also feature a CEO presentation from that fund. See the schedule and registration links below:

Wednesday, Dec 3:

• 8:30- 9:45am CST — Serra Capital II and Serra Capital II FoF

• 10:00 - 11:15am CST — Serra Capital III

• 11:30 - 12:45pm CST — Serra Capital III SBIC

• 2:00-3:15pm CST — Serra Ag Tech Fund

• 3:30-4:45pm CST — Serra Ag & Food Tech Fund II

We look forward to seeing many of you at the meetings! If you have any questions, please don’t hesitate to reach out.

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