Texas-based internet start-up Emergent Connext raised $5 million in seed funding, led by agtech investor Bob Trogele and telecom executive Jim Timmer, to address persistent connectivity challenges facing rural US farmers.

Launched in 2022, Emergent designed its Internet of Things (IoT) network to be “purpose-built for the agriculture industry” and is based on a low-power and wide-area networking protocol called LoRaWAN, Mike Roudi, CEO of Emergent, told AgTechNavigator.

Instead of building expensive cell towers itself, Emergent partnered with rural internet service providers (ISPs), like Cal.net and METALink, to build its IoT network on top of that “baseline infrastructure,” Roudi explained. Emergent is currently operating in Arkansas, California, Indiana, Kentucky, Missouri, and Ohio.

Additionally, Emergent offers various bundled hardware and software solutions to address on-farm issues, including a package with IoT device maker Soiltech Wireless, which can be used to track soil health, storage conditions, and more, Roudi said.

Emergent is already preparing to raise “a series A round in the first half of next year,” given the amount of capital needed to build a network in places that traditional carriers do not, he added.

“We are a telecom company in our DNA, and building telecom networks is not for the faint of heart. … In order to cover the entire rural footprint — which is our goal — we want to build our network to cover all 2.5 million miles of rural designated lands, which is inclusive of all of the ag lands. We are going to need to raise more money,” Roudi elaborated.

Rural connectivity challenges persist

Rural Americans face “a profound connectivity problem,” despite years of focus on the topic and billions of dollars committed by the government, Roudi explained. Nearly a quarter (22.3%) of rural Americans and 27.7% of those in Tribal lands lack fixed terrestrial 25/3 Mbps broadband, according to the USDA.

The Broadband Equity Access and Deployment (BEAD) program was signed into law as part of the Bipartisan Infrastructure Law under the Biden-Harris administration and included $42.45 billion in grant funding for rural broadband deployment, per a White House press release.

“One of the single biggest barriers to agtech adoption is connectivity — consistent, pervasive connectivity.”

Mike Roudi, CEO of Emergent

Under the Trump administration, the National Telecommunications and Information Administration made numerous changes to BEAD, including removing the preference for broadband and prioritizing lower-cost options, the agency shared.

Beyond the capital needed to build networks, reaching farmers and demonstrating the benefits of technology can be difficult, Roudi admitted. Emergent is “spending a lot of time and energy figuring out what is the right sales process” and the best ways to reach farmers, whether that be through ag retailers, dealer networks, or online, he added.

Through its ISP partnerships, Emergent can break into these regions with the support of companies that know the local community, Roudi noted. By addressing connectivity issues, farmers can embrace agtech’s full potential, whether that is precision agriculture solutions or simply sensors to track farming equipment, he added.

“One of the single biggest barriers to agtech adoption is connectivity — consistent, pervasive connectivity,” Roudi emphasized.