Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.
Thanks!

Click here for a guide on disabling your adblocker.

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

S2G Ventures announces investment in Catalera

S2G has announced its investment in Catalera, a platform focused on producing effective, cost-conscious, broad-acting biological products for agriculture, home, and professional uses.

Synthetic inputs have significantly boosted yields, but their widespread use has led to substantial challenges. Chemicals like pesticides and herbicides can contaminate soil, water, and air, disrupting ecosystems and harming beneficial species like bees and aquatic life. Overuse degrades soil health, making crops reliant on synthetic inputs. Additionally, resistant pests emerge, requiring stronger chemical applications and fueling a cycle of dependency. These chemicals also pose health risks to farmworkers and consumers, potentially causing chronic illnesses or neurological issues. Price volatility is another concern, with glyphosate and glufosinate prices increasing over 50% from 2021 to 2022 due to supply chain disruptions.

SG2 views biologicals as a key tool in the effort to find solutions to reduce the use of synthetic inputs. Biologicals is a broadly defined term that includes agricultural inputs that utilize natural sources for their ingredients, such as microbes, plant extracts, peptides, and even beneficial insects. Since biologicals are derived from naturally occurring substances, they minimize adverse impacts on soil health, water quality, and non-target organisms. Biologicals can reduce farmer reliance on synthetic inputs by improving plant resilience, reducing pest and weed pressures, or improving soil nutrient availability and plant uptake. The shift towards biologicals also aligns with the growing demand for healthier and more sustainably produced food, catering to the preferences of an increasingly conscious consumer base.

However, the widespread adoption of biological crop protection solutions faces several challenges. One significant barrier is the variability in effectiveness, as biological solutions may not always provide the same consistent results as chemical pesticides. Additionally, these methods often require more knowledge, monitoring, and management from farmers to be effective, which can be a hurdle for those lacking training or resources. The higher upfront costs and longer time frames needed for biological agents to establish and work can also deter adoption.

Catalera, which was spun out from S2G portfolio company Terramera in May 2024, specializes in biological pest control solutions. The company's mission is to develop safe, effective, and cost-competitive biological products.

With more than 200 patents, the company creates biological products using a purpose-built toolkit of formulation, delivery, and stabilization technologies that enable them to overcome the core challenges holding back biological products, namely efficacy, consistency, and cost. The company also utilizes rapid prototyping laboratories covering over 16,000 square feet to enable accelerated iterations of testing cycles. This approach enables the production of vast quantities of high-quality data, which is crucial when working with complex biological actives. Additionally, Catalera employs a product success framework that systemically integrates and coordinates business, R&D, IP, regulatory, and supply chain teams during all stages of product development, which helps them reduce timelines and costs.

The synthetic chemical industry for agricultural and consumer pest control is currently worth $70 billion. Given the current challenges the sector is facing, major crop science companies are investing billions in biological products. For example, in 2022, Corteva Agriscience spent $1.2 billion to acquire Stoller, one of the largest independent biological companies based in Texas, as well as Symborg, an expert in microbiological technologies based in Murcia, Spain. According to Corteva, the biologicals market is expected to be the fastest-growing crop protection segment in the industry, representing 25 percent of the overall market by 2035.

Catalera's launch was made possible through the initial close of its $8 million USD Series A round led by S2G with follow up investment from Farm Credit Canada (FCC) Capital, and with a second and final close expected in the fourth quarter of 2024. The company has developed 15 proprietary products developed for and with its partners. These include RANGO and SOCORO for specialty crops and row crops in the US, CIRKIL VaproPad for professional bed bug treatment, and the recent registration of TRIFECTO in Mexico for specialty crop agriculture. Armed with this influx of funding, S2G believes the company is well-positioned to deploy several new biological products over the next few years and substantially grow its portfolio. Those products include several microbial bio-insecticides, which are anticipated to be available in 2026, and several other botanical bio-pesticides expected to hit the market in 2025.

Source: S2G Ventures

Publication date: