29. Jul 2021
Sustainability leader Genomatica, headquartered in San Diego, has closed $118M in Series C funding to accelerate the global commercialization and expansion of sustainable materials, with the potential to reduce greenhouse gas emissions by 100 million tons per year.
Leading life science investor Novo Holdings led the round, with additional participation by existing and new investors including Viking Global Investors, Casdin Capital and others. Genomatica will use the investment to scale production for its portfolio of products and continue investing in new technologies to amplify the impact of sustainable materials across a range of industries.
Genomatica replaces widely-used chemicals and materials, traditionally derived from petroleum fossil fuels, with plant-based alternatives that are cost-competitive, equivalent in performance and can reduce environmental impact by up to 93% compared to fossil fuel-based production. These molecularly identical replacements can be used in a wide range of products that touch the lives of billions of consumers, including clothes, cosmetics, packaging and carpet. The financing follows the recent news that Cargill and HELM are building a commercial production plant based on Genomatica’s technology. This plant, the second to rely on Genomatica’s technology (with the first one built by Novamont) will triple global production capacity for just one of the ingredients made with the company’s technologies to 100,000 tons per year — distinctively positioning Genomatica and its larger portfolio to deliver on the market appeal of more sustainable solutions across multiple sectors at these large commercial scales.
“Sustainability is a must-have for consumers and for increasingly ESG-focused investors, making it a business imperative for brands,” said Anders Bendsen Spohr, Senior Partner at Novo Holdings, which has assets of €61 billion across a portfolio of 120 life sciences companies. “We see a massive opportunity for biological manufacturing to help industries meet this demand for sustainable products. Genomatica is creating more sustainable value chains with both a breadth of partnerships and products that it is distinctively executing on at commercial
scales that can deliver the kinds of impact that today’s climate crisis requires.”
As the climate crisis intensifies, consumer demand for sustainable products has risen quickly. A recent survey from Genomatica found that the majority of U.S. consumers (86%) believe sustainability is a good goal, and over half (52%) make choices to be more sustainable. Through its sustainable solutions, Genomatica is aiming to transform how materials are sourced and produced, enabling transparent, traceable, and responsible supply chains that drive both positive social and environmental impact.
“Leading a widespread transition to sustainable materials is what drives us at Genomatica,” said Christophe Schilling, CEO of Genomatica. “We’ve grown intentionally by proving the scalability of our products, fostering strategic partnerships with leading brands and manufacturers, and laying
the foundation to remake supply chains. We are increasingly powering the shift to more sustainable products that consumers and investors want — and humanity needs.”
European-based lead investor Novo Holdings has long been a champion of the bioeconomy. Together with other new investors including Irving Investors, Nicholas Investment Partners, Tenere Capital and Tharsis Capital, they are complementing existing backers in an increasingly ESG-focused and geo-diverse investor base for Genomatica.