by Lynda Kiernan
AgroSavfe, a biotech company dedicated to developing next generation protein-based biocontrol crop protection products, announced it has raised a €35 million (US$39 million) Series C.
A new investor, Ackermans & van Haaren, a diversified and long-term investor, contributed €10 million (US$11 million) to the round, which also included existing investors, Gimv, Sofinnova Partners, PMV, Agri Investment Fund, K&E, Biovest, Madeli Participaties, VIB, and Qbic.
Based in Ghent, Belgium, AgroSavfe was founded in 2013, and is a spin-off from the Vlaams Instituut voor Biotechnologie (VIB) with the goal of protecting the food supply chain from farm to fork. The company has developed a unique and versatile tech platform for the development of novel protein-based biological controls that can provide safe, sustainable, and efficient protection for seeds, crops, and food.
After more than 100 field trials, the company’s most advanced biofungicide has performed strongly, on par with synthetic chemical solutions, however, without harmful residues.
“AgroSavfe is rapidly growing as a competitive player in the biocontrol space for food protection based on our unique AGROBODY™ Foundry Platform and our ability to provide growers and food chain actors with innovative, safe and cost-effective solutions aligned with consumers’ demand,” said Patrice Sellès, CEO, AgroSavfe. “Having such a diverse and strong team of investors joined by Ackermans & van Haaren is a fantastic asset for the long-term ambitions of our company.”
Biologicals, The Next Wave
The benefits of biological crop protection have been gaining attention, and capital. This was reflected recently at Global AgInvesting AgTech Nexus USA in Chicago, where a new $75 million partnership was announced between Joyn Bio and NewLeaf Symbiotics that will bring innovation and sustainability to modern agriculture with a new class of microbes that benefit crop health and protection.
Plant Health and Nutrition (including biologicals) have raised the most equity capital of all the segments, totaling $2.1 billion since 2014, according to John Campbell, managing director of Ocean Park, a boutique investment bank, and speaker at AgTech Nexus USA.
In his recent GAI Gazette article: AgTech: Investment Trends to Watch in a Blooming Industry, Campbell highlights biologicals, including biopesticides, bioherbicides, and soil biostimulants, with particular interest. “In this class, we see fewer seed-stage rounds and increasing size of later-stage rounds,” he said. “Fully 40 percent of the Plant Health and Nutrition investment category have been for biologicals. Significant capital raises include Indigo, Pivot Bio, Concentric Ag (formerly known as Inocucor), Marrone Bio Innovations, and NewLeaf Symbiotics.”
Capital to Scale
The funds raised through this Series C will be used by AgroSavfe in support of the development, registration, and commercial scale production of its biofungicide and bioinsecticide production, and for the accelerated development of the company’s innovative pipeline with applications in critical food and crop pests and diseases.
Currently, production is on pace to see the U.S. launch of BioFun 1, its first biofungicide for the fruit and vegetable markets, in 2022. This will immediately be followed by a launch in Europe and other regions.
“Having witnessed how Biotechnology added significant and unique value to the Life Sciences, Food and Chemicals markets over the last decades, we now see the same happening in the Agricultural sector, both in the US and in Europe,” said Lieven De Smedt, chairman of the Board of Directors of AgroSavfe.
“Long term success not only depends on robust technology and a strong business-minded management, it also requires long-term shareholders. AgroSavfe has a unique combination of all of the above, in particular with its syndicate of existing investors all fully endorsing the company in this round. We are very pleased to welcome Ackermans & van Haaren as a new shareholder in AgroSavfe, and especially Piet Bevernage as new Board member, adding diversity and significant expertise. We all look forward to continuing to build AgroSavfe as a leader in the emerging field of efficient and safe biocontrols for the Food and Agriculture industry.”