Pivot Bio Secures $430M Funding for Microbial Agriculture

Revolutionizing Agriculture with Microbial Nitrogen Fixation

Pivot Bio is pioneering a novel approach to fertilization, diverging from traditional methods. Instead of directly producing fertilizer, the company utilizes modified microorganisms introduced into the soil. These microorganisms generate nitrogen, eliminating the need for conventional transportation and application of nitrogen-based fertilizers.

A New Era in Nutrient Management

Nitrogen is a crucial nutrient for crop development and yield. Historically, farmers have relied on applying fertilizer to maintain productivity. However, this practice, while effective, presents logistical and environmental challenges. Karsten Temme, CEO and co-founder of Pivot Bio, emphasizes the complexities of distributing fertilizer across vast agricultural lands, requiring significant resources and time.

The conventional fertilizing process isn’t without its drawbacks. There’s a risk of nutrient runoff due to rainfall, and it contributes substantially to greenhouse gas emissions. Pivot Bio’s microbial approach offers a potentially more sustainable alternative.

Harnessing the Power of Natural Processes

The core principle behind Pivot Bio’s technology is to mimic and enhance the natural nitrogen-fixing capabilities of soil microbes. Plants and microbes have co-evolved over millennia, but naturally occurring microbial nitrogen production is often insufficient to meet crop demands.

Pivot Bio’s innovation lies in genetically modifying these microbes to boost their nitrogen-producing capacity. “We’ve all known microbes were the way to go,” Temme explains. “They’re naturally part of the root system. We’ve simply activated the portion of their genome responsible for nitrogen production, which is normally dormant when fertilizer is present.”

The Expanding Field of Agricultural Biotechnology

Pivot Bio isn’t alone in exploring the potential of microbiome modification. Companies like Indigo and AgBiome are also focused on manipulating the plant microbiome to enhance pest resistance, reduce disease, and improve overall plant health.

Image Credits: Pivot Bio

This approach is analogous to the use of yeast in baking, where a living organism is harnessed to produce a desired outcome – in this case, gas for leavening. Similarly, Pivot Bio’s modified microbes convert plant sugars into nitrogen, significantly reducing the reliance on synthetic fertilizers.

From Tons of Fertilizer to a Handful of Powder

“We’ve transformed tons of physical materials into a powder, similar to baker’s yeast, that fits in your hand,” states Temme. The product is applied as a liquid during planting, simplifying farm management and minimizing the risk of nutrient loss due to weather events. Approximately half of all fertilizer globally is lost to runoff, a problem that microbes effectively circumvent.

These microbes can fix up to 40 pounds of nitrogen per acre, potentially eliminating or significantly reducing the need for traditional fertilizers. This represents a substantial shift in agricultural practices.

Rapid Growth and Market Potential

Pivot Bio experienced a threefold increase in revenue in 2021. This growth is attributable to the product’s application timing – it’s applied during planting in the northern hemisphere, allowing for a complete sales assessment by mid-year.

The microbes are not a permanent alteration to the ecosystem, as they die off after harvest. Furthermore, Pivot Bio continuously refines its microbial strains, improving nitrogen production efficiency and optimizing the activation threshold. The latest version, Proven 40, demonstrates significant yield improvements, attracting further customer interest.

Securing the Future of Sustainable Agriculture

The company’s substantial Series D funding round, led by DCVC and Temasek, reflects the immense market potential. Pivot Bio currently addresses approximately a quarter of the $200 billion total fertilizer market. The funding will be used to expand the platform and strengthen relationships with farmers.

Currently, the microbes are effective for corn, wheat, and rice, covering a significant portion of global agriculture. However, Pivot Bio aims to extend its technology to other crops, further streamlining and enhancing nitrogen cycles across the industry. This success validates the vision of Temme and his co-founder, Alvin Tamsir, established 15 years ago.