With a rich history of mergers and acquisitions, CNH Industrial, a heavy equipment manufacturer, has managed iconic brands like Ferrari. However, five years ago, amidst the agtech boom, the global giant struggled to immerse itself in the startup world.
Michele Lombardi, a seasoned Italian businessman within CNH, was called upon to spearhead the initiative in 2019. Coming from a background in the company’s business development elite team, Lombardi embarked on a journey to create new connections and partnerships from the ground up.
Initially facing limited reach and a lack of network, Lombardi decided to engage with venture capital firms to tap into promising startups focusing on autonomous farm equipment and precision farming data. The conversations opened doors and enabled Lombardi’s team of 14 employees to establish vital connections with innovative startups and founders.
Over the last five years, Lombardi’s team has successfully closed 12 deals, including acquisitions and minority investments in diverse technological fields such as farm management software, AI-powered drone imaging, and tractor companies.
The achievement of Lombardi’s team comes amidst a challenging period for agtech venture investment. As valuations and investments decline, companies like CNH see an opportunity to lead the market in adopting new technologies through investment and acquisitions.
Lombardi attributes his success to his extensive experience within CNH, where he oversaw various sectors across different countries. This background equipped him with the skills needed to navigate the complex world of investments and acquisitions.
CNH’s investment strategy differs from traditional venture capital approaches, focusing more on technology that aligns with the company’s roadmap. With significant revenue backing the investments, strategic decisions are made to accelerate technological advancements within the organization.
Lombardi’s team leverages CNH’s global presence to strategically evaluate startups for potential collaborations beyond traditional investment opportunities. By engaging with entrepreneurs directly, the team aims to foster innovation and growth within the industry.
Lombardi places great emphasis on personal interactions with entrepreneurs, preferring face-to-face or video calls to truly understand the individuals behind the business. He values authenticity and collaboration, looking beyond the surface to determine the potential for a successful partnership.
