Written by Hadar Sutovsky, ICL VP Corporate Investments & GM of ICL Planet Startup Hub
Executive Summary
In the face of mounting environmental challenges and the rising demand for resilient agricultural solutions, ICL Group launched its corporate venture capital (CVC) arm, ICL Planet Startup Hub, to drive transformational innovation & strategic growth. This case study explores the journey from ICL’s strategic investment in Lavie Bio to an in-depth R&D collaboration—and ultimately, to ICL’s acquisition of Lavie Bio in 2025. It reflects the success of ICL Planet’s “collaboration-first” strategic CVC model and demonstrates how strategic investing can accelerate technology, open new markets, and deliver long-term corporate value that reshape a corporation’s future in emerging markets such as agricultural biologicals.
- Corporate Venture Capital – A Catalyst for Innovation
Corporate Venture Capital (CVC) has become a driving force behind innovation across industries. According to Global Corporate Venturing (GCV), CVCs are uniquely positioned to blend strategic intent with capital, helping corporates enter adjacent markets, access frontier technologies, and foster cultural transformation. In sectors like AgriTech, where deep science and long development cycles often deter traditional VC investment, CVCs provide vital support, pairing capital with integration capabilities and commercialization pathways.
Over the past decade, corporate venture capital (CVC) has evolved from a niche function to a driving force behind global innovation, reshaping how corporations build strategic growth. Once perceived primarily as tools for passive partnership building or technology scouting, modern CVC arms now serve as platforms for transformation, innovation acceleration, and even market-making power.
A March 2025 PitchBook–GHIF report shows:
- CVC-led deals more than doubled over the last decade (694 in 2014 to 1,500 in 2024).
- Deal value tripled, from $13B in 2014 to $39.5B in 2024.
- In 2024, CVCs participated in more than 50% of all global venture deal value.
CVC-backed startups are not only more resilient but also more successful:
- Exit values in 2024 hit $289.2B with CVC involvement vs. $31.4B without.
- Failure rates halved (4.7% vs. 9.5%) and graduation to next funding rounds doubled.
- Pre-money valuations with CVC participation were at least 2x higher at early stages.
The 2024 Global Venturing report reinforces that leading CVCs like ArcelorMittal’s XCarb or BAT’s Btomorrow Ventures now act as transformation agents, embedding collaboration terms into every deal and aligning CVC investment with corporate reinvention strategies.
- ICL and the Rise of ICL Planet Startup Hub
Launched in 2021, ICL Planet Startup Hub was established as the strategic investment arm of ICL Group, focused on early-stage startups aligned with food, agriculture, climate, and sustainability domains. But what distinguishes ICL Planet from other CVC programs is its rigid adherence to a collaboration-first investment thesis.
Every investment includes a built-in strategic collaboration—whether in the form of joint product or application development, co-pilots, or commercialization—ensuring deep alignment and mutual value creation.
ICL Planet operates on three strategic pillars:
- Business Development: Expand into adjacent markets and identify potential M&A opportunities.
- External R&D Leverage: Accelerate innovation by bridging internal gaps with startup technologies.
- Ecosystem Engagement: Promote innovation culture, positioning ICL as a forward-thinking global player.
This model reflects the “agent of change” role described in the Global Venturing reports: where the CVC is a transformation enabler, embedding agility and frontier thinking within the core corporate machinery
ICL Planet’s investment thesis mandates strategic collaboration as a prerequisite for every deal. This approach positions ICL Planet as a transformational partner—not just a financial backer—helping bridge the gap between startup agility and corporate scale.
- The Biologicals Opportunity
Agricultural biologicals—including bio-stimulants, bio-pesticides, and microbial solutions—have emerged as a critical lever for sustainable agriculture. These products reduce dependency on synthetic chemicals, improve soil health, and help crops withstand climate-related stress.
Biologicals promise:
- Lower environmental impact.
- Improved crop tolerance to abiotic stress (heat, drought).
- Reduced dependence on synthetic fertilizers and pesticides.
For ICL, a global leader in crop nutrition, biologicals offered a strategic adjacency to its core fertilizer business and aligned with its ESG commitments. The company recognized that by investing in biologicals, it could future-proof its portfolio and gain a leadership position in next-generation crop inputs.
- Strategic Investment in Lavie Bio
In August 2022, ICL invested $10 million in Lavie Bio via a SAFE (Simple Agreement for Future Equity). Lavie Bio, a subsidiary of Evogene, uses AI-powered discovery platforms (BDD and MicroBoost) to identify and develop microbe-based biological products. True to ICL Planet’s investment model, the capital investment was coupled with a strategic collaboration agreement—ICL and Lavie Bio committed to co-develop a pipeline of bio-stimulants aimed at improving crop resilience in the face of abiotic stresses, a rising concern due to extreme weather variability with applications across ICL’s global markets.
- Partnership in Action – From AI Discovery to Product Pipeline
The collaboration between ICL and Lavie Bio delivered tangible results at an exceptional pace:
- In 2024, the partnership reached a major milestone:
- Over a dozen novel microbial strains were computationally identified using Lavie Bio’s AI discovery engine.
- The strains were verified through greenhouse trials and met strict product requirements for efficacy, shelf life, and fertilizer compatibility.
- The prediction accuracy of the AI platform was 10 times higher than traditional methods, accelerating time-to-validation.
- The validated strains advanced toward field trials, setting the stage for regulatory submissions planned in 2026.
This rapid cycle from discovery to pilot validation demonstrated the strength of aligning R&D roadmaps between a startup and a global corporate player.
- Strategic Outcomes and Acquisition
In 2025, ICL announced the acquisition of Lavie Bio, completing a successful CVC cycle and a full realization of its CVC investment thesis, from strategic investment and R&D collaboration to full integration. This acquisition marked a pivotal moment for ICL:
Strategic Gains:
- A scalable AI-powered biologicals engine to be fully integrated into ICL’s innovation platform.
- Expanded product pipeline with active development programs and new products launching horizon.
- Revenue-generating products with global expansion underway.
Operational Integration:
- Integration into newly established biologicals power hub lab within ICL, focused on sustainable solutions and microbial innovation.
- Leverage of Lavie Bio’s AI tech with ICL’s global commercialization infrastructure to accelerate biologicals go-to-market execution.
This acquisition reinforces ICL Planet’s role as a strategic growth engine—demonstrating the end-to-end impact of corporate venture investing when aligned with core business and long-term vision.
- Lessons and Key Success Factors
Throughout this journey, several challenges emerged—from macroeconomic to technical risks.
Challenges Faced:
- Technical complexity in microbial product development.
- Industry-wide slowdown in AgTech investments during macroeconomic downturns.
Key success Factors sustained the partnership:
- Clear shared objectives between ICL and Lavie Bio from the outset.
- Strong interpersonal relationships and trust across teams.
- Open data exchange and co-ownership of product development frameworks.
- Methodological alignment and joint decision-making.
The partnership flourished not just due to funding, but because it embedded startup agility into ICL’s R&D and commercial DNA. These enabled the collaboration to mature into a transformative acquisition—anchoring ICL’s leadership in sustainable crop inputs.
- The Road Ahead
ICL’s acquisition of Lavie Bio marks the beginning of a new chapter. By fusing Lavie’s AI-powered discovery with ICL’s global market presence, a powerful biologicals platform is being built to serve the future of agriculture.
This case illustrates how a collaboration-first CVC strategy can build long-term enterprise value—not just for startups, but for the corporate parent. For ICL Planet, this success validates its model and inspires continued investments across FoodTech, ClimateTech, and frontier AgTech. For us this story sets the precedent: CVC done right is not just about investment—it’s about building the future.
References
- PitchBook & MSD Global Health Innovation Fund. (2025, March). Corporate Venture Capitalists Are Redefining Venture Capital. Retrieved from https://globalventuring.com/mp-files/corporate-venture-capitalists-are-redefining-venture-capital/
- Taranto, B. (2025, March 18). How Corporate Venture Capital Became a Driving Force in Global Innovation. Global Corporate Venturing. Retrieved from https://globalventuring.com/mp-files/bill-taranto-how-corporate-venture-capital-became-a-driving-force-in-global-innovation/
- Global Corporate Venturing. (2024, December). Finding a New Path: How Venture Units Guide Corporations Through Transformational Change. Retrieved from https://globalventuring.com
- Springer Nature. (2022, July 13). The Performance Effects of Corporate Venture Capital: A Meta-Analysis. The Journal of Technology Transfer. Retrieved from https://link.springer.com/article/10.1007/s10961-022-09954-w
- Counterpart & Silicon Valley Bank. (2024, September). State of Corporate Venture Capital 2024. Retrieved from https://www.svb.com/globalassets/trendsandinsights/reports/the-state-of-corporate-venture-capital-2024-report.pdf
- Bloomberg. (2024, June 13). US Corporate Stockpiles Grow, Soaring to Record $4.11 Trillion. Retrieved from https://www.bloomberg.com/news/articles/2024-06-13/cash-holdings-by-us-corporates-surge-to-4-11-trillion-in-the-first-quarter
- PitchBook & NVCA. (2024). Q4 2024 PitchBook-NVCA Venture Monitor. Retrieved from https://files.pitchbook.com/website/files/pdf/Q4_2024_PitchBook-NVCA_Venture_Monitor.pdf
- C-Suite Strategy. (2024). Strategic Insights into Corporate Venture Capital: Driving Innovation and Growth. Retrieved from https://www.c-suite-strategy.com/blog/strategic-insights-into-corporate-venture-capital-driving-innovation-and-growth
- CB Insights. (2024). Corporate Venture Capital Trends 2024. Retrieved from https://www.cbinsights.com/research/report/corporate-venture-capital-trends-2024/
