Tag Archive for: Biological

Why Are Biological Companies Struggling for Investment

Why Are Biological Companies Struggling for Investment: In recent years, the agricultural biologicals sector has witnessed significant growth. The global market was estimated at $16.7 billion in 2024 and is projected to reach $31.8 billion by 2029. This surge underscores the increasing demand for sustainable agricultural solutions.

However, early-stage startups, particularly those in pre-seed and seed stages, face substantial challenges in securing investment. While more established companies like Switch Bioworks, Elicit Plant, Solasta, Agospheres, Biotalys, Micropep, Catalera, Botanical Solution, and BioConsortia successfully obtained funding in 2024, emerging enterprises often struggle to attract similar attention. This disparity is partly due to investors’ heightened expectations and a preference for ventures with proven technologies or those nearing revenue generation.

Why Are Biological Companies Struggling for Investment

Why Are Biological Companies Struggling for Investment

Current Investment Trends in Agricultural Biologicals

Geographically, Europe-focused venture capitalists (VCs) are leading the way in funding biological companies. Looking ahead to 2025, there is cautious optimism that U.S. investors will increase their participation, particularly as interest rates decline. However, uncertainties related to tariffs, the farm economy, and government agency (EPA) budgets persist, which could impact investment decisions.

The investment landscape has changed significantly. The willingness to fund biological companies at the high levels seen 3-5 years ago has diminished. Investors today possess more profound industry knowledge, making them more selective. They are increasingly drawn to companies with well-defined business models, clear paths to market impact, and solid financial planning.

The Challenges of Building a Successful Biologicals Business

Succeeding in the biological sector demands patience, effort, and strategic focus. Investors often have unrealistic expectations regarding market development, leading to an oversaturated and unsustainable market. Moving forward, I hope to see more realism in investor sentiment, which will benefit the entire industry by fostering sustainable growth and innovation.

Additionally, recent failures in agri-biological investments have made investors more cautious. To attract funding, companies must demonstrate:

  • Quality-driven research & development
  • Efficient spending and cost management
  • Clear and executable go-to-market strategies

Companies that meet these expectations will have a higher chance of securing funding, thereby improving the overall quality of investments in the sector.

Regulatory Barriers and Their Impact on Investment

My experience raising investment for Bionema has reinforced one of the most critical issues in this sector: the lengthy and costly regulatory approval process for biopesticides. While venture capital investors are interested in biological solutions, many are deterred by the extended timelines required to bring products to market. Unlike conventional agrochemicals, biopesticides require approximately £5-8 million per product for global registration, which is manageable for companies like Bionema. Still, the real challenge is the time needed for regulatory approval. This process often delays market entry by 5-7 years in the EU, 2-3 years in NA and 12 months in Brazil after biopesticides regulatory reform, making it difficult for investors to commit to early-stage funding.

Instead of investing in Series A or Series B rounds, I have observed greater interest from agrochemical multinationals in acquiring or licensing biological technologies. While this demonstrates the commercial viability of biologicals, it also signals a reluctance among large corporations to invest in the sector’s long-term growth. If the biological industry is to thrive and compete with synthetic chemicals, substantial investment will be required to accelerate development and commercialisation.

Moreover, biopesticide regulations must be harmonised globally to streamline approvals and reduce market entry barriers. The fragmented regulatory environment forces companies to undergo separate and costly registration processes in different regions, further discouraging investment. Unless regulatory agencies align their frameworks, the biological sector will struggle with slow growth and limited funding.

Key Areas of Growth in Agricultural Biologicals

From an industry perspective, biologicals are thriving, particularly in nitrogen use efficiency, nitrogen fixation, and biocontrol. New application methods like planter box technologies are experiencing significant growth and scaling.

For farmers, return on investment (ROI) remains the key driver. In the current economic climate, growers are seeking efficiency-enhancing solutions, including:
✔ Fertilizer replacements
✔ Yield enhancers
✔ Abiotic stress mitigation products

As growers become more educated about biologicals, their adoption rates are increasing rapidly, leading to further investment in these technologies.

Investor Expectations for the Future

Historically, venture capital has played a key role in funding biologicals and will continue to do so. However, some investors have overly enthusiastic expectations regarding short-term returns. As VCs gain a deeper understanding of the sector, we expect them to invest more targeted and strategically.

Private equity firms are taking a more cautious, sustainable approach to investment. These firms focus on long-term flexibility and adaptability, recognising the rapidly evolving nature of the AgBio industry.

The Reality of Raising Capital in 2025

The current investment climate in biorationals mirrors the broader agricultural market’s bearish trend. However, market growth in this sector, driven by:
✔ Public and grower demand for sustainable agriculture
✔ Stricter regulatory policies limiting chemical options

Farmers are expected to increase their adoption of biologicals, but only for science-backed solutions with proven efficacy that deliver real value.

Finding new capital to fund early-stage biological companies will remain challenging in 2025. Investors are becoming more critical and selective, favouring companies that:
✔ Have a proven technology platform
✔ Are generating (or near generating) revenue
✔ Have a clear pathway to profitability

As a result, securing seed funding or Series A investment will be challenging over the next 1-2 years.

The Long-Term Future of BioAg Investment

Despite the current challenges, biologicals attract significant interest, mainly from companies traditionally focused on agrochemicals and fertilisers. These corporations recognise the growing regulatory and consumer-driven shift toward sustainable agricultural solutions. However, we have seen a slight decline in mergers and acquisitions (M&A) activity and the closure of some companies in this sector. This highlights the difficulty of sustaining a BioAg business—balancing high investment costs with the need for consistent financial returns. Despite this, the long-term strategic value of biologicals is undeniable. The agricultural industry is undergoing a significant shift, and biologicals will be crucial in this transformation. Investors may remain cautious, but their interest in scalable, science-backed solutions will persist.

Final Thoughts

While securing investment remains a significant challenge for early-stage biological companies, those focusing on innovation, strategic planning, and strong financial models will continue attracting funding. Realism in investor expectations is key to building a sustainable and impactful BioAg industry.

The future of biologicals is bright, but companies must prove their value with solid science, strong business cases, and a clear go-to-market strategy.

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Pioneering fish fertiliser provides biological boost

Pioneering fish fertiliser provides biological boost: British organic fertiliser manufacturer Biocore Agri has developed a new fish-based fertiliser that has significantly increased microbial life, including bacteria and fungi, in a variety of growing systems.

In a series of trials with its Biocore Land product, a fertiliser made by fermenting fish, the Fleetwood-based manufacturer has used Eurofins’ Soil Life Monitor tests to prove the soil-enhancing effect of the product. The liquid fish hydrolysate contains a broad range of macro and micro nutrients, amino acids, trace elements and organic matter, as Managing Director Stephen Welsh explains:

Pioneering fish fertiliser provides biological boost

Pioneering fish fertiliser provides biological boost

“We shred and mulch fish that is not suitable for human consumption in a process known as cold hydrolysis. The resulting liquid organic fertiliser that can be applied to soil as a conditioner or to plants as a foliar spray. It can also be mixed with other biological or chemical products to reduce spraying frequency.”

In a trial, seven litres per hectare of Biocore Land was used to improve lettuce growth. It reduced the growth cycle by three days, equivalent to a 10% reduction.

“We are working with Harlequins F.C. to enhance the training pitches at the club. We are also running a series of trials with VCS Agronomy, and recently completed a successful trial with the British Carrot Growers Association which saw carrot yields increase by 9.65%,” he says.

Tests with Eurofins Agro UK have identified that, when compared to a control sample, the organic fertiliser can increase microbial biomass by 85% and organic matter by 27%. In addition, the tests showed increases in total bacteria of 66.6% and total fungi of 85.71%.

“In a 15-hectare split field trial we applied Biocore Land to grass, which showed an 8.47% increase in grass protein and an organic matter increase of 27%. This demonstrated a benefit to both soil life and grass quality,” adds Mr Welsh.

The product, being made of natural material, is certified by the Soil Association and is expected to appeal to farmers and growers looking to enhance soil health by improving soil life. As an agricultural product for grassland or arable, it has the potential to help soils manage stresses such as drought, floods, extreme temperatures, pests and disease.

“Eurofins was the only laboratory that could identify the build-up of microbial biomass in the soil samples from our trials. The results show that Biocore Land is capable of making significant improvements to microbial life quickly, which we hope will appeal to farmers and growers looking to use natural fertilisers rather than chemicals,” he concludes.

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Symbio appoint Biological Science Specialist

Symbio appoint Biological Science Specialist: Symbio has appointed biological science specialist Dr Deidre Charleston, Ph.D. as Research and Technical Manager, bringing over 20 years’ extensive experience of field trials, data collection, new product development, testing of compounds and mixtures and fulfilment of UK and EU pesticide regulatory and labelling requirements.

Growing up in South Africa, the daughter of a game ranger, Deidre’s early experience of wide-open spaces and respect for the natural world later developed into a life-long passion for biological science. After graduating from university, her early career was spent working as a research scientist in Africa investigating ways to improve integrated pest management (IPM) in agriculture.

Symbio appoint Biological Science Specialist

Symbio appoint Biological Science Specialist

Her career path has included managing trials programmes at Microspore and Arysta Life Science as well as laboratory trials in plant pathology and entomology. At Scotts Miracle-Gro, she was responsible for managing the Levington Research station in the UK, running 100-200 field trials a year and leading international biocide projects.

Prior to joining Symbio, in her role as Curriculum and Quality Manager at Easton and Otley College, her responsibilities included academic and subject leadership for land-based studies, and delivery of plant and soil science, pest control and PA01 training for NPTC qualifications.

She comments, “I’m very excited about joining Symbio which really takes me back to my roots in scientific research but combines that with a focus on the value of education. My role has three key aspects to it. Firstly, to review our current product portfolio and run new, rigorous trials so that we are continually updating and adding to our knowledge with scientific data. Secondly to focus on education; making the science more accessible by running seminars and events, talking about soil biology and helping users understand how our products work best. The restrictions on pesticide use will only keep increasing so we need to be looking at equivalent, sustainable alternatives. Lastly, I’m going to be improving and developing new products, with science-based innovation that will make a difference to the way we manage sportsturf in the future”.

Dr Deidre Charleston can be contacted on Tel: 07968 344029 and by email at deidre@symbio.co.uk.

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Reliable & Biological Pest Control

Reliable & Biological Pest Control: Selecting the best pest control product can seem like a daunting task; lists of unrecognisable ingredients and various warning symbols mean you cannot be certain what you are applying to your garden or if it will work. BASF, from its specialist production facility in the UK, produce a biological pest control that contains only one ingredient; beneficial nematodes that do not lose efficacy.

BASF grow six different products, each containing a different species of nematode, all of which are simply mixed with water and either applied from a watering can with a coarse rose or sprayed onto the foliage and soil, depending on the variety. Pests are not able to develop a resistance to the nematodes, which means the treatment never loses effectiveness, so you can get back to growing and planting safe in the knowledge that the product is working!

Reliable & Biological Pest Control

Unlike pellets and chemical-based alternatives, the product is not harmful to use around pets, children or garden wildlife and the whole programme is entirely biological so that all the Nemasys products can be used by organic gardeners.

Nemasys products are a simple, reliable method to ensure your plants are protected throughout the growing season, as one treatment lasts up to six weeks and entire season’s worth of nematodes can be ordered in one go from BASF’s online stockists, which is then delivered to your home as necessary every few weeks, so no more trips back and forth to the garden centre and more time to spend in the garden!

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