Solugen, a self-sustaining chemicals business that received more than $350 million last year, has secured another $200 million to begin construction of its next plants and penetrate new markets. Solugen is a carbon-negative molecular factory that swaps petroleum-based goods with plant-derived alternatives. They integrate fermented and petrochemical processes ingredients to build the carbon neutral molecule production technology. They manufacture compounds from bio-based fuel sources and are based on technological advances in bioengineering, metal catalyst design, and flexible plant architecture. Clean water, recycled content, safer food, and healthy personal hygiene will all be addressed through its solutions.
Funding Details
Kennivik, Lower Carbon Capital, and Refactor Investment spearheaded the Series D fundraising round. Previous sponsors such as Fifty Years, Temasek, and Baillie Gifford also contributed to the round. Solugen has received $635.2 million in investment across ten rounds. 31 investors have contributed to the funding of Solugen. The two largest shareholders are Baillie Gifford and Temasek Holdings. As per PrivCo, Solugen has a post-money potential of $1B to $10B as of October 31, 2022.
CEO and VCs Statement
Solugen claims to be producing real money, in contrast to many other enterprises in this sector that have struggled to establish commercial momentum. According to CEO Gaurab Chakrabarti, his firm is on course to generate more than $100 million in sales this year. The startup secured $200 million in funding this week, barely a year after raising $357 million from shareholders. According to Chakrabarti, this puts Solugen worth “far north of $2 billion.” Other clean tech startups, he says, are based on “a lot of aspirations and ambitions.” “We aspire to be the firm that demonstrates to the world that it is feasible to be profitable.”
“They weren’t just unlucky. “They have a reproducible approach and infrastructure,” says Natalie Hugh Tydeman, chief investment manager at Kinnevik AB, a Swedish business that contributed $50 million in Solugen’s most recent fundraising round.
Fund Usage and Mission
The additional investment will be employed to expand and accelerate the novel molecule pipeline, allowing Solugen to offer a greater range of carbon-negative and low-carbon products to its clients. The investments will be used to considerably expand and enhance the firm’s unique chemical inventory, enabling an even broader preference of carbon negative and low carbon alternatives for its clients and final consumer. According to CEO Gaurab Chakrabarti, the newest round of investment will assist Solugen in developing a new, unidentified chemical that can also combat scale and rusting in a major industry. Solugen’s objective is to decarbonize the energy sector and reduce waste in the process.
Service Overview
Solugen bills itself as a renewable chemical facility that produces no hazardous waste or emits carbon pollution. Through a patented technique, the business combines corn syrup with genetically manipulated enzymes to make alternatives for different compounds traditionally created with phosphates and oil. Solugen manufactures around 10,000 metric tons of product per year at its Bioforge plant in Texas, which was transformed from an old gasoline wax distillery. It also serves over 30 customers in areas such as agriculture and personal care goods, as well as the Defense Department. Solugen believes that its technologies might be used to create chemicals for construction materials, cleaning goods, and oil wells.
Conclusion
Solugen, a self-sustaining chemicals business that received more than $350 million last year, has secured another $200 million to begin construction of its next plants and penetrate new markets. Kennivik, Lower Carbon Capital, and Refactor Investment spearheaded the Series D fundraising round. Previous sponsors such as Fifty Years, Temasek, and Baillie Gifford also contributed to the round.
FAQs
Ans. Solugensecured another $200 million to begin construction of its next plants and penetrate new markets.
Ans. Solugen is a carbon-negative molecular factory that swaps petroleum-based goods with plant-derived alternatives.
Ans. They manufacture compounds from bio-based fuel sources and are based on technological advances in bioengineering, metal catalyst design, and flexible plant architecture.
Ans. The additional investment will be employed to expand and accelerate the novel molecule pipeline, allowing Solugen to offer a greater range of carbon-negative and low-carbon products to its clients.
Ans. Solugen’s objective is to decarbonize the energy sector and reduce waste in the process.
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