Biological alternatives to chemical fertilizers and pesticides continue attracting the interest of investors, with the latest announcement being the €4M Series A funding round raised by Micropep Technologies, led by Paris-based Sofinnova Partners. Other participants in the round include IRDInov and Toulouse Tech Transfer. Micropep will use the investment to strengthen its technology platform, further its R&D programs to proof of concept, and initiate commercial growth.
The startup’s technology orchestrates gene expression to increase favorable growth outcomes by using miRNA-encoded peptides. Known as miPEPs, these proteins are produced by plants and other organisms to regulate the expression of genes. They can be manipulated without changing the underlying DNA, and because they are specific to each plant and target specific genes, they do not impact other plants or processes.
“Sofinnova Partners’ support represents a major step for Micropep’s development,” said Thomas Laurent, Micropep’s CEO and co-Founder. “Their expert knowledge combined with an unparalleled international network, validates the work we accomplished so far and represents a strong advantage for our growth and our ambition to revolutionize agriculture”.
Micropep is Sofinnova IB1’s second agtech investment, the first having been Agrosavfe, a startup working on the use of biological molecules to replace chemical fungicides and insecticides.
Denis Lucquin, Managing Partner at Sofinnova Partners, said “We are thrilled to back Micropep. This young company has all the necessary features we look for: a breakthrough technology with a strong commercial and environmental impact and clear business objectives driven by visionary entrepreneurs.”
Sofinnova Making a Play in Agtech
Sofinnova Partners is a 40 year old venture capital firm that focuses on Life Sciences, including biopharmaceuticals/biotech, medical devices, and industrial biotechnology. The firm made the investment through its €125M Sofinnova IB I fund which is dedicated to “the sustainable transition of the chemical industry” by investing startups focused on the transformation of renewable raw materials, like agricultural waste or C02, to renewable end-products such as bio-plastics and other bio-sourced materials.
Biological answers to challenges such as drought and insect control is a burgeoning science, with significant market expansion on the horizon. The biofertilizer market alone is projected to grow at a compounded annual growth rate (CAGR) of 14.08 percent reaching an estimated market value of $2.3 billion by 2020, while the biopesticides market has been estimated at value of $3.22 billion in 2017, and is projected to reach a value of $6.60 billion by 2022, at a CAGR of 15.43 percent, according to Markets and Markets.