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Thursday, Mar 28, 2024
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Genomatica Raises $15 Million

Genomatica, a San Diego-based “green” chemicals company, said March 25 that it has closed a $15 million investment round.

TPG Biotech, the venture arm of private equity firm Texas Pacific Group, led the Series C round, along with existing investors Mohr Davidow Ventures, Alloy Ventures and Draper Fisher Jurvetson.

Genomatica said it will use the investment to build a demonstration plant where it will produce butanediol, commonly known as BDO, using a renewable technique.

The company has developed a strain of the e. coli bacteria to convert sugar water into BDO. The valuable chemical intermediate is widely used for producing plastics, solvents, electronic chemicals and elastic fibers. The global market for BDO is valued at approximately $4 billion per year.

The company expects to compete with chemicals derived from petroleum, known as petrochemicals, by offering a less expensive solution.

The funding will also enable Genomatica to expand its pipeline to include additional “large-market chemical targets” that the company aims to produce from renewable feedstocks.

— Heather Chambers

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