From Problem to Fast Growing Agtech Business

By Andi Anderson

Kyle McMahon did not plan to start one of the fastest growing agtech companies in the United States. His journey began with a simple goal.

He wanted to buy a tractor. While searching, he discovered a major problem in agriculture. There was no clear and trusted way to know the real value of used farm equipment.

As McMahon explained, “There was no Kelley Blue Book for tractors,” and added, “I didn’t know what I should be paying.” This lack of transparent pricing inspired him to create a solution that would later become Tractor Zoom. Today, the company helps value and advertise more than 20 billion dollars in farm equipment every year and supports buyers and sellers across the agricultural sector.

A major turning point came in 2017 when McMahon joined the Iowa State University Startup Factory. This 18-week incubator program helps students, faculty and community members turn strong ideas into successful businesses. The program provided business training mentorship and access to experienced advisors.

Since its launch in 2016, the Startup Factory has supported 165 startups across 18 cohorts. These startups have raised more than 108 million dollars in outside funding and achieved five successful exits. The program continues to grow and now includes virtual classes and one on one mentoring. The current cohort benefits from a strong network of mentors, alumni and advisors.

Peter Hong director of the ISU Startup Factory shared the purpose of the program saying, “The program’s mission is to guide scientists, engineers and innovators as they learn to think like business leaders.” He also explained that the Startup Factory is part of a group of university entrepreneurship programs offered at no cost. 

Hong further noted, “These programs are committed to not only educating entrepreneurs about the foundations of starting a business but also to expanding their network of business and technical advisors, potential business partners, private sector service providers and investors that would normally take years to develop.”

McMahon’s story shows how a simple problem combined with education mentorship and support can bring new agricultural solutions to market and strengthen innovation across the farming industry.

Photo Credit: gettyimages-sisoje