#3 - Danny Bernstein, CEO & Managing Partner at The Reservoir
Slice of Agriculture Team
04/07/2025
In Episode #3 of Slice of Agriculture our guest is:
Danny Bernstein, CEO & Managing Partner at The Reservoir.
Listen to the full episode to learn about:
- The Reservoir's Mission: A venture capital firm dedicated to revolutionizing AgTech through robotics and AI.
- Key Investments: Reservoir Ventures focuses on autonomy, precision agriculture, and AI-driven farm solutions.
- Challenges in Agriculture: Labor shortages and automation gaps in harvesting processes.
- Insights from the Netherlands: Lessons from a country where agriculture is a first-class industry.
- Future of AI in AgTech: Adapting existing AI frameworks for farm robotics and automation.
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The Birth of The Reservoir
Danny Bernstein, CEO & Managing Partner at The Reservoir, has had a remarkable journey in technology and innovation. After selling his company to Google and spending a decade there, he realized that while industries like cybersecurity and fintech were saturated with tech solutions, agriculture remained largely untapped. Recognizing the massive economic and financial inequities in rural markets, Bernstein saw an opportunity to transform the industry through technology.
His vision led to the creation of The Reservoir, an early-stage venture capital firm focused on AgTech. The primary mission? To de-risk agricultural technology investments by fostering innovation, with an emphasis on robotics, automation, and precision agriculture.
Innovative Investments and the Reservoir Incubator
The Reservoir has already made significant investments, with a strong emphasis on building a dedicated incubator—Reservoir Farms. Unlike traditional startup incubators, this one is purpose-built for AgTech, integrating a working farm with a robotics lab.
Bernstein points out that while there are over 7,000 startup incubators worldwide, none effectively combine farming with cutting-edge robotics. This unique model aims to accelerate agricultural automation, particularly in labor-intensive sectors like harvesting.
Reservoir Ventures has also invested in several pioneering companies, including:
- FarmNG: An autonomy platform designed for agricultural applications.
- Software solutions: Focused on optimizing produce supply chains and water management.
- Precision technology: Targeting fire detection and prevention in agricultural areas.
Tackling Labor Shortages with Robotics
Labor remains one of the biggest challenges in agriculture. In California alone, the agricultural market is valued at $55 billion, with $16 billion spent on labor—most of it going toward harvesting. Yet, unlike large-scale crops like nuts that use shakers, most fruits and vegetables still require manual labor.
Bernstein highlights that 99% of micronutrient-rich crops—like strawberries, apples, and asparagus—are harvested manually. The rising cost of labor is making it increasingly difficult to grow these crops in the U.S., opening the door for robotics to play a transformative role. Companies like B-WISE, which has raised over $100 million for its robotic beekeeping service, exemplify this shift towards farm automation.
Lessons from the Netherlands: A Model for U.S. Agriculture
During a recent trip to the Netherlands, Bernstein observed key differences in how agriculture is treated as a first-class industry. Unlike the U.S., where sectors like technology and entertainment dominate, Dutch agricultural infrastructure is modern, well-maintained, and deeply integrated with public-private partnerships.
One striking example was Wacheningen University, where corporate offices like Unilever’s are embedded within the campus, fostering close collaboration between academia and industry. Bernstein believes the U.S. can learn from this model by:
- Creating High-Quality Incubation Spaces: Building inviting, well-equipped test farms for AgTech startups.
- Strengthening Industry Partnerships: Encouraging tighter collaboration between universities and the agricultural sector.
The Future of AI and Robotics in Agriculture
Over the next five years, Bernstein envisions AI and machine learning playing a critical role in AgTech. While companies like NVIDIA, Microsoft, and Amazon are already providing AI tools, the challenge lies in adapting them for real-world farming conditions.
One key distinction between self-driving cars and farm robotics is the approach to objects:
- Self-driving cars succeed by avoiding obstacles.
- Farm robots succeed by interacting with crops and other objects.
This fundamental difference highlights the need for fine-tuned AI algorithms tailored to the unpredictable and interactive nature of farm environments.
What’s Next for The Reservoir?
As The Reservoir prepares to launch its first incubator in Salinas Valley—a $ multi-billion agricultural hub—it marks the beginning of a new era in AgTech. With strong backing from the state of California and industry leaders like Western Growers, the firm is poised to make significant strides in agricultural automation.
Bernstein’s ultimate goal? To bridge the gap between Silicon Valley’s tech expertise and the vast agricultural potential of rural America. By merging venture capital with farm-focused innovation, The Reservoir is set to redefine the future of farming.
