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Pivot Bio closes $70 million Series B Financing
Published: Oct 2, 2018 4:30:00 AM
Company initiates commercial sales of its flagship product, Pivot Bio PROVEN™, across the U.S.
SAN FRANCISCO – October 2, 2018 – Pivot Bio announced today $70 million in a Series B funding round led by Breakthrough Energy Ventures, and includes Singapore-headquartered investment company, Temasek.
This funding further strengthens Pivot Bio’s 2019 commercial launch of the first and only nitrogen-producing microbes for U.S. corn farmers. Recently named Pivot Bio PROVEN™, this product supplies a clean alternative to synthetic nitrogen to the crop each day. The new funding will also support expanded research and development for the company’s second-generation product, a seed treatment option, as well as product introductions beyond the U.S. in markets such as Brazil, Argentina and Canada. Within the company’s pipeline, Pivot Bio is developing nitrogen-producing microbes for other crops beyond corn, including wheat and rice.
“Breakthrough Energy Ventures is the perfect lead investor in Pivot Bio’s Series B funding. We both share a vision of a more sustainable food system and a commitment to a better planet,” said Karsten Temme, Ph.D., CEO and co-founder, Pivot Bio. “This round of funding enables Pivot Bio to introduce our products to the world. We’re excited to deliver a product to farmers that increases their productivity while improving the quality of our air and water through reduced fertilizer-linked pollution.”
Backed by an investor group that includes many of the world’s top business leaders, Breakthrough Energy Ventures (BEV) has more than $1 billion in committed capital to fund scientific breakthroughs with the potential to deliver affordable, reliable, clean energy. To address the unique challenges of energy innovation, BEV provides flexible and patient capital with a 20-year horizon, as well as deep scientific expertise. The fund invests across five grand challenges: electricity, transportation, agriculture, manufacturing and buildings. These are the broad areas of activity that contribute most to greenhouse gas (GHG)emissions.
“Pivot Bio is addressing one of the largest sources of GHGs on the planet – the potent nitrous oxide and carbon dioxide emissions associated with the use of synthetic fertilizers,” said Carmichael Roberts of Breakthrough Energy Ventures. “We’ve been extremely impressed with the team, their differentiated approach to crop nutrition, and their commitment to creating value for the farmer. This company has an opportunity to make a meaningful, positive difference for our environment while disrupting the $200 billion fertilizer market.”
A small portion of existing chemical fertilizer decomposes into nitrous oxide and becomes a greenhouse gas 300 times more potent than CO2, making it responsible for about 5 percent of global warming. Worldwide fertilizer-linked pollution significantly contributes to the more than 500 dead zones: places so toxic that nothing lives. One of the largest is where the Mississippi River empties into the Gulf of Mexico.
“While fertilizer is a critical input for producing enough food to feed the planet, its current use is unsustainable for the farmer and pollutes our environment,” said Temme. “Pivot Bio’s PROVEN™ solution helps make farming more efficient and reduce the environmental footprint of fertilizer.”
Through an extensive discovery process and patented approach, Pivot Bio identifies specific microbes in a crop’s own roots that have the innate ability to produce nitrogen. However, these microbes are wired to shut down their natural ability to feed plants when nitrogen is plentiful in the soil. Fertilizer use over the past century has silenced the power of these microbes. Through its proprietary non-transgenic technology, Pivot Bio reawakens the microbes’ capability to produce nitrogen and designed a product that farmers apply in furrow at planting. The microbes adhere to the root and deliver nitrogen in a timely and efficient manner. The need for excess chemical nitrogen fertilizer is eliminated, resulting in more productive and predictable crop yields without nutrient degradation, volatilization, leaching, or runoff into waterways.
“We implement many sustainability practices on our farm. Being part of Pivot Bio’s Intent to Pivot 2018 pilot program was a good fit with how we manage our farm,” said Iowa-based farmer Tim Couser of Couser Farms. “This product has the potential to make positive changes on our family's farm, and we are pleased to add Pivot Bio PROVEN™ to our program.”
Cooper Rinzler of Breakthrough Energy and Dheeraj Mehta of Temasek will join Pivot Bio’s board of directors effective immediately. Other board members include Temme, Pivot Bio’s chief scientific officer and co-founder Alvin Tamsir, Matt Ocko of DCVC (Data Collective), and Roger Wyse of Spruce Capital Partners.
As the first nitrogen-producing microbial product available for U.S. corn farmers, Pivot Bio PROVEN™ is already approved for use in states that represent about half of the U.S. corn producing market. Additional state approvals are also in process for 2018 and 2019.
Pivot Bio Series A investors included co-leads DCVC (Data Collective) and Monsanto Growth Ventures, as well as Prelude Ventures and Spruce Capital Partners. Seed funding investors included co-leads DCVC (Data Collective) and Monsanto Growth Ventures. The company received early support from the Bill and Melinda Gates Foundation, the National Science Foundation, and the Defense Advanced Research Projects Agency. Pivot Bio was recently named to the Forbes Most Innovative AgTech Startups list, and the recipient of two Business Intelligence Group awards including Sustainability Leadership and the Sustainability Product of the Year.
About Pivot Bio
At Pivot Bio, we believe in meeting the needs of the present without compromising the needs of future generations. Our unparalleled understanding of the crop microbiome will help create a future with cleaner water and air. We are dedicated to providing farmers with solutions, so they can grow high-quality, environmentally-responsible and sustainably-focused food crops that help feed families worldwide. For more information, visit www.pivotbio.com and follow @pivotbio on Twitter.
Contact: Saramaya Penacho, BAM Communications
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