TechAccel, a venture and developmental partner focused on the agriculture, animal health, and food sectors, announced that it has completed an undisclosed equity investment as part of a $3.2 million extension to a Series A for Epicrop Technologies Inc. – an agricultural biotechnology company that employs cutting-edge epigenetic technology to increase crop yields. Other investors in the round include North Forty Ventures, Nelnet, Speedway Properties, and Allen & Co.
Originally named in 1942 by scientist Conrad H. Waddington, the field of epigenetics involves the study of “potentially heritable changes in gene expression,”according to the site, What Is Epigentics?, which goes on to note that the work however, does not involve changes to the DNA sequence. Instead it entails changing a phenotype without changing the genotype, which changes how cells read the genes.
Epicrop Technologies is a Nebraska-based seed technology licensing company that bases its work on the epigenetic advances made by the company’s co-founder, Sally Mackenzie, a professor of agronomy and horticulture at the University of Nebraska – Lincoln. Using conventional plant breeding techniques integrated with molecular markers, Epicrop can create and select plants displaying particularly strong vigor traits and that provide higher yields.
“Increasing yield and stress tolerance are key goals of most seed companies,” said Dr. Michael Fromm, co-founder and CEO of Epicrop. “Epicrop’s method has the potential to provide these traits by adding epigenetic information directly to the seeds of commercial varieties without adding any genetic material. The unique features of this method readily fit into traditional commercial breeding and seed production methods to facilitate company adoption of this system.”
“We believe Dr. Mackenzie’s research may represent the most important breakthrough in crop breeding technology of this era,” said Jeff Raikes, principal of North Forty Ventures and lead investor in the series. “We’re pleased to support the commercialization of this research at Epicrop and look forward to the impact it will have for global agriculture.”
Under its partnership model of investing and acceleration, TechAccel focuses on companies that have “a strong science advancement need” – something TechAccel can bridge through its access to technological expertise and R&D initiatives via its network of agribusinesses and universities.
Moving forward, TechAccel and Epicrop plan to establish a joint venture that will develop new target crops through the use of Epicrop’s technology.
“We’re excited to have TechAccel in our corner, both as an investor and a research partner advancing our technology,” said Fromm. “Their expertise and support will help Epicrop accelerate its programs demonstrating the enormous potential of epigenetics to increase yields and stress tolerance in a variety of crops.”
A Busy Month
This is the second investment announced by TechAccel within a month, following closely after TechAccel and Iowa Corn Opportunities, the equity funding arm of the Iowa Corn Growers Association, jointly announced separate investments in St. Louis-based biotech animal nutrition company Agrivida Inc.
Founded in 2004 by scientists from the Massachusetts Institute of Technology (MIT), Agrivida has developed a biomolecular technology platform of plant-expressed enzymes derived from corn that can significantly improve the performance of animal nutrition products.
“Agrivida is focused on poultry and swine at the moment using the corn plant as the manufacturing facility for those enzymatic products, but we think there’s opportunity to work with other plants such as soy or to create products for other animals,” Michael Helmstetter from TechAccel told AgFunder. “By partnering with us and our allied universities, we will help Agrivida move into the other areas faster than they might themselves without negatively impacting their bandwidth, but by adding value.”
TechAccel is taking the same course with Epicrop, which has received two Phase 1 competitive federal Small Business Innovation Research grants, and is seeking out partnerships with several leaders in the seed industry for the improvement of the current top seed varieties on the market.
“We believe Epicrop is emerging as a leader with its revolutionary plant breeding platform, and TechAccel is ready to collaborate with Epicrop to advance this science for at least two additional crops,” said Michael Helmstetter, Ph. D., president and CEO of TechAccel.
-Lynda Kiernan
Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.