August 10, 2016

Biological insecticide company, Vestaron announced the completion of an oversubscribed $18 million Series D.

The Kalamazoo-based company that produces bio-pesticides developed from spider venom that are non-toxic to fish, birds, and mammals, raised the funds in two tranches, with the first $10 million tranche backed by 26 existing and angel investors, according to a regulatory filing reports MiBiz. The primary investors backing the $10 million and $8 million tranches include Cultivian Sandbox Ventures, Pangaea Ventures, Anterra Capital, Southwest Michigan FirstLife Science Venture Fund, Michigan Accelerator Fund, Hopen Life Science Ventures, Grand Angels, Capital Community Angel Investors, and Open Prairie Venture.

“Vestaron’s recent traction with growers, academics, and major agri-chem companies has driven an intense level of investor enthusiasm,” said Keith Gillard, General Partner of Pangaea Ventures and Chairman of Vestaron. “We had multiple competing term sheets, which resulted in a very strong insider-only round.”

This funding comes prior to the company’s planned launch of its first commercial peptide-based biological product SPEAR™-T, a bioinsecticide for the treatment of thrips in vegetables and ornamentals. This launch is expected before the first quarter of 2017.

“By isolating peptides that are non-toxic, our products provide a method of efficiently protecting plants with environmentally friendly measures. This allows us to use a targeted approach to protecting vegetable and fruit crops, instead of a chemical one,” the company says on its website.

Regulatory approval was secured by Vestaron from the U.S. Environmental Protection Agency (EPA) in 2014, and the company is now in the process of getting approval from regulatory bodies in Canada and Mexico. Another two products based on the same technology and ingredient are scheduled to be released later in 2017.

This funding, which Dr. John Sorenson, president and CEO of Vestaron, notes will bring Vestaron to a positive net cash flow, will be allocated to support the expansion of the company’s research and development efforts in the creation of new bioinsecticides, the discovery of new synthetic molecules and new plant incorporated insecticides.

Additionally, MiBiz reports that the funding will support the development of a sales and distribution network that will market the company’s bioinsecticide products directly to vegetable and ornamental greenhouse operations.

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Lynda Kiernan