AgBiome Secures $116M Funding for Crop Protection Technology

AgBiome Secures $116 Million to Expand Crop Protection Pipeline

AgBiome, a company focused on developing agricultural solutions derived from microbial communities, has successfully closed a $116 million Series D funding round. This investment will be utilized to bolster the company’s product pipeline and prepare for the launch of innovative new offerings.

Company Origins and Discovery Platform

Founded in 2012 in Research Triangle Park, North Carolina, AgBiome was co-established by Scott Uknes and Eric Ward, who share a professional relationship spanning over three decades. They jointly developed the Genesis discovery platform.

This platform is designed to identify and harness the potential of diverse microbes for agricultural applications, specifically in areas like crop protection. The system screens microbial strains to identify effective solutions for controlling insects, diseases, and nematodes.

The Vast Microbial World

Uknes emphasized the immense scale of the microbial world, estimating that a trillion microbes exist, yet only approximately 1% have been identified to date. These discovered microbes are already integral to various industries, including pharmaceuticals, food production, and agriculture.

AgBiome’s Genesis platform houses a comprehensive database containing over 100,000 microbes, with the genome of each microbe fully sequenced across hundreds of strains.

Product Development Process

The company employs a process of randomly selecting strains and identifying optimal combinations with specific activities. For example, they develop products to prevent fungal growth on crops like strawberries.

Howler: A Breakthrough Fungicide

AgBiome’s initial fungicide product, Howler, was introduced to the market last year. It demonstrates efficacy against over 300 different crop-disease combinations. The company experienced a tenfold increase in sales during 2020, as reported by Uknes to TechCrunch.

Typically, farmers utilize fungicide applications up to 12 times annually as part of their integrated pest management programs to maximize fruit and vegetable yields.

Advantages of Howler’s Formulation

Howler’s safer formulation allows for its application as the final spray in a pest management program. A key benefit is its reduced re-entry period; farmers can re-enter fields in the afternoon following a morning application.

Furthermore, it boasts a short pre-harvest interval of just four hours, contrasting with the seven-day waiting period required for many other fungicides currently available.

Future Product Pipeline

AgBiome plans to launch a second fungicide, Theia, in early 2022. Additionally, Esendo, a third product, has been submitted for registration to the Environmental Protection Agency.

The company anticipates expanding its portfolio to include 11 products by 2025, encompassing insecticides and herbicides in addition to fungicides.

Series D Funding Details

The oversubscribed Series D round was jointly led by Blue Horizon and Novalis LifeSciences, with participation from both new and existing investors. This latest funding brings AgBiome’s total funding to over $200 million.

The company’s previous funding round, a $65 million Series C, was completed in 2018.

Strategic Manufacturing and Commercialization

Unlike some companies in synthetic biology that opt to sell their technologies, AgBiome has chosen to retain control over manufacturing and commercialization. Uknes expressed pride in his team’s ability to execute this strategy.

Commitment to Sustainable Agriculture

“Our goal is to feed the world responsibly,” Uknes stated. “These products offer a viable alternative to synthetic chemicals, providing growers with sustainable tools to protect their crops, aligning with consumer demand for natural solutions.”

Growth and Expansion Plans

Currently employing over 100 individuals, AgBiome will allocate the new funding to accelerate production of its upcoming products, expand its manufacturing capabilities within North America, and broaden its international presence.

The company projects to increase its workforce to approximately 300 employees within the next five years.

Strategic Acquisitions

AgBiome is also considering acquiring smaller companies with existing products to further expand its pipeline, complementing its organic growth initiatives. This has influenced Uknes’s selection of investment partners.

Investor Perspective: Blue Horizon

Przemek Obloj, managing partner at Blue Horizon, was introduced to AgBiome through existing investors. His firm’s impact fund focuses on the future of food, initially investing in alternative proteins in 2016 and subsequently expanding into agricultural technology and delivery systems.

Addressing Challenges in Agriculture

Obloj highlighted the $60 billion agricultural market and the issue of toxic chemicals entering water systems as a significant problem. While eliminating these chemicals is desirable, it could negatively impact crop yields.

Technological Advancements Enable Innovation

Recent advancements in technology are enabling Uknes and Ward to achieve what was previously impossible. The necessary computational power and storage capacity for microbial discovery and sequencing were not available just a decade ago.

A Sustainable Future for Food Production

“We must find a way to feed 9 billion people by 2050 without polluting the Earth,” Obloj emphasized. “AgBiome provides an alternative approach to crop protection, minimizing environmental impact and health risks.”