December 21, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Agricultural biotech leader NewLeaf Symbiotics (NewLeaf) has closed a fully funded $45 million Series D led by new investor Gullspång Re:food, with participation from Otter Capital Partners LP, S2G Ventures, Leaps by Bayer and other unnamed backers. 

NewLeaf is a pioneer and global leader in pink-pigmented facultative methylotrophs (PPFMs). Aside from being a mouthful, what exactly are PPFMs? Basically, they are members of the Methylobacterium family of bacteria that are commonly found in soil, on plant surfaces, in some fresh waters, and in dust. Their pink pigmentation is due to carotenoid pigments in their cells, and is believed to be a natural defense against UV radiation from the sun. 

Headquartered in St. Louis, Missouri, NewLeaf is focused on the discovery, development, production, and commercialization of products containing these ubiquitous and naturally symbiotic microbes. To-date, the company has filed more than 200 patents and patent applications, has displayed technology outcomes that include increased yield potential and sustainability indicators, and has released its first biostimulant products for corn and soy in the U.S. 

The biologicals market includes biopesticides, biofertilizers, and biostimulants, which due to increased regulation and a growing focus on sustainable practices are commanding an increasing share of the market, is forecast to grow at a CAGR of 14.14 percent. This is up from a value of $13.35 billion in 2023 to $33.69 billion by 2030, according to Fortune Business Insights. 

This growth is driven by a shrinking base of arable farmland, a tighter supply of traditional agricultural inputs, a rapid emergence of regenerative ag practices leading to 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. All of these factors bring the biologicals category onto the radar of conventional global giants and investors, resulting in greater traction. 

Over the last three years, the company has seen tremendous growth for its PPFM technology, with its product-applied footprint increasing from approximately 800,000 acres in crop year 2022, to 3.5 million acres in crop year 2023, and projections that its applied footprint has the potential to reach 11 million acres in crop year 2024. 

“Farmers across the globe face increasing challenges every season, and PPFM technology can support them in finding sustainable solutions to positively impact the way food is produced,” said Peter Odemark, managing director of Re:food, who also will take a seat on the NewLeaf Board of Directors. “There are still more opportunities to uncover, and we’re thrilled to be a part of the journey.”

With the funding from this round, NewLeaf stated it intends to accelerate its work with PPFM technology and adjacent technologies in the areas of biostimulants/microbial inoculants, biocontrol, nitrogen use efficiency, and methane mitigation. 

For 2024, its plans include a new EPA-registered biopesticide technology shown to repel rootworm in corn plants; new biostimulant products for peanuts and cotton; and continued R&D connected to rice yield, nitrogen efficiency, and methane reduction impacts. 

“This round of funding is a testament to the science-led, proven performance of NewLeaf PPFM technology,” said Brent Smith, CEO and president, NewLeaf Symbiotics. “Our team’s strong work positions us for growth and continuous discovery of the capability Pink Performance delivers in the field. We will see this momentum move us into 2024 and beyond through more crops, expanded geographies and increased acreage.”

~ 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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