Fundraise

Farmnote raises undisclosed round from two impact funds to build dairy AI

What's the deal? Japanese agtech company Farmnote has raised an undisclosed late-stage round from two impact investment funds, Impact CapitalDealroom has a profile for this one. Try Dealroom → and SocialX, the company announced on September 28, 2026. Impact Capital led the round, which was structured as a third-party allotment of shares.

What does Farmnote do? Founded in 2013 and based in Obihiro, Hokkaido, it builds IoT and AI tools for dairy and livestock farming. Its "Farmnote Cloud" herd-management system tracks roughly 380,000 cattle — about 10% of Japan's total — while its "Farmnote Color" neck-worn wearable detects signs of oestrus and disease in real time.

What's the money for? Farmnote will develop an AI agent to support farm operations and management, and expand its subsidiary's dairy operations. Through Farmnote Dairy PlatformDealroom has a profile for this one. Try Dealroom →, the company runs two of its own farms and manages six farms across Hokkaido, owning farms that run its own software.

Why now? Japan's dairy sector faces a shrinking, ageing workforce, rising feed and material costs, and the growing complexity of large-scale operations. In July 2026, Farmnote added support for the Model Context Protocol (MCP), letting generative AI access herd data directly.

What's the endgame? The company wants an AI agent that integrates production and management data, codifying the high-productivity know-how from its own farms for contracted producers. Chief executive officer Shinya Kobayashi said the goal is to "create the brains of the world's agriculture" (translated from Japanese).

The signal: Impact Capital, which runs a US$53.8M fund launched in 2024, invested after mapping Farmnote's social impact through a logic model. The deal reflects investor appetite for ventures that tie productivity gains to the long-term sustainability of food production.

Read more: prtimes.jp

Image credit: Generated with Gemini

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