San Diego-based Genomatica has announced that it has closed $118 million in a Series C funding round led by life science investor Novo Holdings. The funding round included participation by existing and new investors including Viking Global Investors, Casdin Capital and others.
Series C rounds represent the fourth stage of startup financing. Genomatica will use the investment to scale production for its portfolio of products and continue investing in new technologies and the development of cost-competitive, plant-based alternatives to petroleum-based chemicals and materials. The company’s current portfolio features molecularly identical replacements that are not only equivalent in performance, but offer a reduced environmental impact by up to 93% compared to fossil fuel-based production.
Genomatica has commercialised processes for bio-BDO and for biobased butylene glycol; work is ongoing on polyamide intermediates and on long-chain chemicals for use in cleaning products, to replace palm oil as feedstock.
The present financing follows the recent news the company has licensed its BDO production technology to Cargill, which is using it in its joint venture with HELM to produce renewable 1,4-butanediol (BDO). This plant will be the second in the world to rely on Genomatica’s technology - the first was built by Novamont in 2016 in Bottrighe, in North East Italy - and will triple global bio-BDO production capacity to 100,000 tons per year.
The products developed by Genomatica can be used in a wide range of products, including clothes, cosmetics, packaging and carpet, in place of conventional materials and chemicals - somethat that consumers are increasingly demanding. A recent survey from Genomatica found that the majority of U.S. consumers (86%) believe sustainability is a good goal, and over half (52%) make choices to be more sustainable.
“Sustainability is a must-have for consumers and for increasingly ESG-focused investors, making it a business imperative for brands,” said Anders Bendsen Spohr, Senior Partner at Novo Holdings, which has assets of €61 billion across a portfolio of 120 life sciences companies.
“We see a massive opportunity for biological manufacturing to help industries meet this demand for sustainable products. Genomatica is creating more sustainable value chains with both a breadth of partnerships and products that it is distinctively executing on at commercial scales that can deliver the kinds of impact that today’s climate crisis requires.”
“Leading a widespread transition to sustainable materials is what drives us at Genomatica,” said Christophe Schilling, CEO of Genomatica. “We’ve grown intentionally by proving the scalability of our products, fostering strategic partnerships with leading brands and manufacturers, and laying the foundation to remake supply chains. We are increasingly powering the shift to more sustainable products that consumers and investors want — and humanity needs.”