Economists like to joke that if they found a $100 bill on the sidewalk, they wouldn’t pick it up. Surely if it were real someone would have already picked it up.
“After 500 conversations with cash market commodity traders,” says Contango Founder Ben Brame, “I can tell you with conviction that cash commodity markets aren’t efficient. The traders are brilliant, but they don’t have the tools.”
Brame, who earned his M.A. in electrical engineering from Purdue University, paints the challenge Contango aims to solve as he works from the Purdue Railyard coworking space in the Purdue Research Park.
The market inefficiencies Brame shares are unsurprising when you learn the vast amount of rapidly changing data required to buy, sell, and manage the movement of agricultural commodities is often collected and reviewed manually before being added to sprawling Excel spreadsheets.
Contango helps cash market commodity traders drive volume and improve margins by automating the data collection and math so traders can easily synthesize huge data sets and integrate the information into their trading strategies. Whether commodities are heading down a county road in a truck, transported by rail line, or floating on a barge, Contango aims to move data beyond the spreadsheet.
Brame became aware of the pain point from his decade plus of working in agtech, but took a measured path to building Contango’s solution for cash market commodity traders. “In our initial conversations, we found zero successful implementations of supply chain optimization software and a lot of failed attempts,” he said. “There’s plenty of software to manage their position in the futures market, but this isn’t where the commodity traders make their money.”
After spending a year conducting voice-of-customer conversations and iterating on designs, Contango secured three innovation partners to build and prove the product’s value. The company spent its second year iterating and building its sales pipeline. Now, the team is ready to help country elevators across the Corn Belt.
Brame says he’s already in commercial discussions and ready to start raising capital to take their next giant leap — with a careful caveat. “We are being mindful to avoid pre-mature scaling. As a software provider, you’re trying to model a world you’re not from. We wanted to be absolutely sure we had the right product before launching to industry partners.”
Finding the right investment partners is key to managed growth for startups like Contango. One key partner has been Purdue Strategic Ventures, which invested through its Ag-Celerator fund during the company’s first year. Strategic Ventures also provides strategic support and networking opportunities for its portfolio companies.
For Purdue-connected companies (a third of the Contango team has a degree from Purdue), this early support from Purdue through funding, connection, and even affordable office space through Purdue Railyard can be make or break.
“Since our initial investment, we’ve been thrilled to witness Contango’s remarkable growth—not only in the strength and innovation of their product but also in the addition of exceptional talent to their team,” said Madison Sowards, Purdue Strategic Ventures community manager. “The official launch of their all-in-one solution marks a major milestone in their journey, and we are eager to support their continued growth.”
As Contango begins its go-to-market phase, Contango is actively seeking investment partners. For more information, contact Ben Brame (ben@contango.live).
Media Contact: Polly Barks, phbarks@prf.org
