Vancouver, Canada-based Catalera BioSolutions has successfully completed the first close of its $8 million Series A funding round, marking a significant milestone for the young company that was spun out of the Canadian biologicals firm Terramera earlier this year. Led by S2G Ventures with follow-up investment from Farm Credit Canada (FCC) Capital, the funding will enable Catalera to accelerate the commercialization of its biopesticide products and expand its product development pipeline.
Catalera CEO Matthew Dahabieh spoke to AgFunderNews, emphasizing the importance of this funding for the company’s future. “Spun out of ag biologicals company Terramera earlier this year, Catalera is now a fully independent company focused on commercializing biological products,” he said. Terramera remains a shareholder in Catalera, providing a solid foundation for the new entity. Catalera’s product development platform, inherited from Terramera, leverages patented formulation technologies and laboratory space for rapid prototyping. This setup aims to bring biological crop protection products to market faster and more cost-effectively.
Historically, the development of biological crop protections has mirrored the lengthy and expensive processes of the chemical industry, often taking a decade or more to transition from R&D to a commercial product. This slow timeline has been a significant barrier to the widespread adoption of biologicals. Many industry experts argue that speeding up this timeline is crucial for making meaningful progress in replacing synthetic chemicals in agriculture.
The complex nature of biologicals adds another layer of difficulty. “Relative to synthetic chemistry, biological active ingredients tend to have multiple/complex modes of action, be more expensive to produce, and have limited inherent stability,” Dahabieh noted. Sometimes, these natural solutions need additional support to meet industry needs. Catalera’s formulation technology addresses this by stabilizing active ingredients and ensuring their safe delivery.
While the company’s current focus is on biopesticides, Dahabieh hinted at broader ambitions. “We will explore different opportunities in the future,” he said. The Series A funding will not only accelerate the commercialization of Catalera’s existing in-market products but also expand its product development pipeline. Thanks to its roots in Terramera, Catalera already boasts a diverse pipeline of products that cater to agricultural, professional, and consumer applications, targeting both row and specialty crops. These products are currently available in the US and Mexico, with forthcoming innovations including bioinsecticides and botanical biocontrols.
Catalera’s funding announcement coincides with similar news from UK-based SOLASTA Bio, another company working on biopesticides, which also announced its own Series A raise this week. This simultaneous momentum in the biopesticides sector underscores the growing interest and investment in biological solutions as viable alternatives to synthetic chemicals.
The implications of Catalera’s progress are significant. By accelerating the development and commercialization of biopesticides, the company is poised to play a crucial role in the shift towards more sustainable agricultural practices. The ability to bring effective, stable, and cost-efficient biological products to market faster could help reduce the agricultural sector’s reliance on synthetic chemicals, offering a more environmentally friendly approach to crop protection.
As Catalera moves towards the second and final close of its Series A round in the fourth quarter of 2024, the industry will be watching closely. The success of companies like Catalera and SOLASTA Bio could signal a broader transformation in how agricultural products are developed and brought to market, ultimately benefiting farmers, consumers, and the environment.