November 16, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Peptyde Bio, the first company spun out of the Donald Danforth Plant Science Center by Danforth Technology Company (DTC), a wholly owned subsidiary formed by the Danforth Center in February of this year, announced it has closed on an oversubscribed $1.2 million Pre-Seed round backed by Danforth Technology Company, St. Louis Arch Angels, BioGenerator Ventures, and QRM Capital. 

“We decided to see whether we could raise this first round of capital solely from local capital sources, and were overwhelmed by the quick and positive response,” said Tom Laurita, acting CEO, Peptide Bio.

“It is clear that St. Louis is the epicenter of ag tech innovation,” Laurita continued, “but the belief has always been that startups need to go to one of the coasts for funding. It’s great to see the maturation of the local capital ecosystem.”

Founded only in June of this year by the Danforth Center’s Dilip Shah, PhD and Kirk Czymmek PhD, Peptide Bio’s foundation is based on 20 years of research on antimicrobial peptides (AMPs) – these are molecules that plants produce to protect themselves from disease, and are considered one of the most promising sources of naturally occurring alternative options to synthetic pesticides for agricultural use.

A shrinking base of arable farmland, tight supply of traditional agricultural inputs, a higher level of willingness by farmers to adopt new systems that can result in higher yields while being environmentally safe, and consumer sentiment calling for cleaner supply chains and less agrochemical usage have increasingly brought the biologicals category onto the radar of investors.

This year, the global agricultural biologicals market is valued at $12.9 billion, and is expected to grow at an impressive CAGR of 13.7 percent to reach a value of $24.6 billion by 2027, according to recent analysis. Of all agricultural categories, fruit and vegetable production is expected to account for the fastest market growth.

Through its work the company discovers, designs, and characterizes novel AMPs with the ability to complement or replace chemical fungicides in an effective, environmentally friendly way with a lower cost of development compared to traditional fungicides.

By using AI to discover new AMPs in silico, the team employs targeted modification and determines the structure, efficacy, mode-of-action, safety profile, and manufacturability of the designed AMPs.

The company operates through collaboration and joint development and/or licensing agreements with industry partners to help them quickly source novel AMPs in a cost effective manner.

Reflecting on this new partnership, Brian Kinman, Chairman, St Louis Arch Angels commented, “Over the past three years, the Arch Angels have seen and funded an increasing number of startups from the St. Louis region. This funding is encouraging more deal flow and highlighting the fantastic scientific knowledge and innovation that resides in our area.”

“Peptyde Bio is a prime example of this trend, with excellent technology, strong leadership, and a clear strategy. For us, the imprimatur of the Danforth Center and BioGenerator Ventures made Peptyde Bio a very attractive investment, and we are excited to be an important partner in the opportunity.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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