September 12, 2024

By Gerelyn Terzo, Global AgInvesting Media

Number 8 Bio, a Sydney, New South Wales-based startup whose tagline is ‘changing feed, feeding change,’ has received a ringing endorsement from the VC community. The company has raised A$7 million (US$4.7 million) in a seed round led by existing backer Main Sequence, a NSW-domiciled technology-focused VC firm and early backer of Number 8 Bio whose original investment harkens back to 2022.

Other participants in the latest round included Breakthrough Victoria, which contributed A$1.7 million (US$1.1 million), and The March Group (TMG), which invested in the startup through its March Exp I fund. Number 8 Bio plans to direct the proceeds toward its mission of combating climate change by eradicating carbon emissions in the food and ag industry.

Livestock are responsible for as much as 15 percent of global GHG emissions. Through its largest stomach compartment known as rumen, cows are able to digest feed that they otherwise would not be able to break down. However, rumen contain methane-producing microbes that take hydrogen and carbon dioxide, converting it into pesky greenhouse gas (GHG) methane, which in turn is burped out by the cows, thereby nullifying as much as 10 percent of their feed.

Number 8 Bio uses science to solve issues with enteric fermentation — the digestive process that occurs in the stomachs of ruminant animals including cows, sheep and goats — through its technology dubbed Performance Digestion. Number 8 Bio’s solutions include a variety of additives designed to support the needs of individual market segments across beef, dairy, grazing and natural, targeting up to 10 percent improvement in nutrition availability by managing rumen energy flows while methane is reduced by as much as 90 percent.

In addition to helping the environment, the company’s Performance Digestion solution also goes on offense, helping livestock to bolster their productivity thanks to modifiers in the feed supplements. Number 8 Bio’s additives target a 3:1 return on investment (ROI) for farmers. Ultimately they want to strengthen the sustainability of the beef and dairy sectors to better ensure food security for a growing global population.

Number 8 Bio CEO and Co-Founder Dr. Tom Williams stated, “I’m pleased to announce our seed round of A$7 million with investment from Main Sequence Ventures, Breakthrough Victoria and The March Group. I couldn’t be prouder of the Number 8 bio team and the incredible passion and versatility we’ve shown on our journey to empower farmers to decarbonize.”

Williams went on to say, “This funding will play a pivotal role in accelerating our product development, scaling up our state-of-the-art manufacturing facility and helping us forge key commercial partnerships critical to our growth and success in the market. To feed a rapidly growing population on a warming planet, there have to be multiple solutions, we all need to do our part. At Number 8 Bio, we’re changing feed to feed positive change, helping farmers grow the food we love, without the emissions.”

Breakthrough Victoria CEO Grant Dooley said, “Our A$1.7 million investment in Number 8 Bio reflects our commitment to sustainable innovation. Their ‘Performance Digestion’ technology tackles the critical challenge of reducing livestock methane emissions while boosting productivity. We’re excited to support this groundbreaking solution, alongside Main Sequence, The March Group, and others, as we drive toward a more efficient and sustainable future in food production.”

The March Group Founder Partner Dr Harold Schmitz said, “We are thrilled to participate in Number 8 bio’s Seed financing as they tackle the immediate mission critical challenge of methane emissions in the livestock sector — with a vision to break the cost barrier for carbon-negative food ingredients in the future. This investment aligns with TMG’s commitment to backing world-class domain experts and exponential platform technologies in search of double bottom line outcomes.”

Main Sequence Partner Gabrielle Munzer stated, “Number 8 Bio is an investment that was many years in the making, having looked across the sector to find the most impactful and market-aligned ways to tackle the urgent problem of agricultural emissions. Our continued support of Number 8 Bio through this seed round is a testament to the company’s important work and impressive progress since our initial investment in 2022.”

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