May 17, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Peptide-based biological crop protection developer Vestaron announced it has closed on an $82 million Series C. The oversubscribed round was co-led by Ordway Selections and Cavallo Ventures with participation from Agronautic Ventures, Fortistar, and Endeavor8, and returning investors Novo Holdings, Northpond Ventures, CGC Ventures (the venture unit of Continental Grain), iSelect, and Syngenta Ventures. 

Headed by president and CEO Anna Rath, Vestaron is dedicated to improving the safety, efficacy, and sustainability of crop protection through the development of a novel class of peptide-based biopesticides.

Peptides are small, naturally-occurring proteins that have proven modes of action, and therefore the same efficacy as traditional synthetic products, but offering the safety and environmental protection of biologicals. And as existing traditional products currently on the market face increasingly stringent regulation due to environmental concerns, along with declining efficacy due to pest resistance, Vestaron’s peptide-based crop protection products provide a critical alternative for farmers and agricultural producers.

“Vestaron has developed groundbreaking peptide technology with a successful commercial launch in the agricultural industry,” said Craig Herron, managing partner, iSelect. “We are excited to have a hand in the revolution in this early stage.”

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.  According to a report by ResearchandMarkets.com, the agricultural biologicals market is estimated to have had a value of USD $6.75 billion in 2017, and is projected to reach USD $12.86 billion by 2022, which translates to a compound annual growth rate of nearly 14 percent.

Using an advanced proprietary fermentation-based peptide platform, Vestaron can develop a range of biological crop protection and trait products. Its first two launched products are Spear®-T, which is designed for greenhouse use and controls all four of the major greenhouse pests – thrips, whiteflies, aphids, and mites; and Spear-Lep, which is designed for field use to control lepidopteran pests. 

Both products are based on Vestaron’s Spear peptide, which has been assigned a novel nerve and muscular mode of action targeting the nicotinic acetylcholine receptor, which is responsible for approximately 30 percent of the $18 billion global insecticide market.

Six key muscle and nerve receptors collectively account for 80 percent of the global insecticide market, and Vestaron has peptides in its pipeline suited to address all of them. When discussing the transition of crop protection away from traditional synthetic products to biological, Anna Rath, president, CEO, and director, Vestaron said, “This transition is being driven by the same factors that drove a similar transition in pharma – slowing innovation, increasing late stage failures and thus development costs – as well as factors specific to crop protection including resistance of pests to existing solutions, environmental and worker safety issues, and consumer awareness of and focus on food safety and quality.”

The company’s lineup also includes Leprotec, a liquid formulation of the lepidopteran active Bt kurstaki strain EVB-113-19 that can be used with Spear®-Lep bioinsecticide on a wide range of crops including food, non-food, and greenhouse crops to control loopers, worms, and other caterpillars.

“Farmers, consumers, and governments deserve an alternative to chemical pesticides and their terrible side effects,” said Ariel Barack, head of food and agriculture, partner, Ordway Selections.

“The efficacy of Vestaron’s products, the company’s scalable manufacturing processes, and the involvement of some of the leading strategic and financial investors allows Ordway Selections to confidently state that Vestaron is at an inflection point,” Barack continued. “We are delighted to be partnering with Anna Rath and her talented team to globalize an impactful range of biological products that is simple for farmers to apply and benefit from.”

After less than three complete years on the market, Spear has achieved significant penetration, holding a 5 percent market share for California pistachios last year, and lately launching in Mexico while regulatory approvals are being awaited for entry to the EU and Canada. 

“Vestaron continues to outline and achieve milestones,” said Kartik Dharmadhikari, principal, Novo Holdings. “I have confidence that the next phase will deliver the promised technology and portfolio that has already established Vestaron as a valuable partner providing vital solutions to growers across North America.”

As part of this funding round, Ariel Barack with Ordway, Mike Wilbur with Cavallo, and Craig Herron with iSelect have been appointed as board observers.

“With the caliber of additional investors, our recently added Board of Director, Randy Papadellis and Audit Chair Susan Altschuller,” commented Rath. “Vestaron is primed for a strong and dynamic future.”

~ Lynda Kiernan-Stone is editor 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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