Andreessen Horowitz backs Synonym’s biotech • TechCrunch. | So Good News
Armed with $6.3 million in new pre-seed capital, Synonym Biotechnologies has begun the development phase for its first biomanufacturing facilities for non-pharmaceutical applications.
Edward Shenderovich and Joshua Lachter to develop commercial-scale biomanufacturing facilities to provide flexible manufacturing capabilities to synthetic biology manufacturers of all sizes; The company was launched in January 2022 to finance and build. – The class of products produced is called “Fermentation Farms”.
Andreessen Horowitz; Giant Ventures; Blue Horizon Thia Ventures and other venture funds working on decarbonization are part of the investment.
Shenderovich and Lachter closed the funding this month, and told TechCrunch via email that the pre-seed round “allowed us to build an exceptional and well-rounded launch team and establish our product in the marketplace.”
“We plan to use the capital to support our facility construction efforts,” CEO Shederovich said. “This means we focus on hiring our design, engineering and finance teams to lay the groundwork for our first sub-plant and accelerate strategic partnerships across the value chain.”
Synonym is developing standardized designs and underwriting standards for financing its fermentation farms so companies can easily leverage them to produce higher-quality bioproducts at lower costs than existing options. On the investor side, The company is said to be building an underwriting model to offer ESG investment opportunities.
The company’s climate and energy goals; The US government’s recent executive order on biomanufacturing aims to accelerate innovation in this area to meet the goals of food security and sustainability and supply chains.
However, Shenderovich and Lachter suggest that biological products such as dairy protein; Polymers and resins will only be possible if they reach cost parity with legacy products, he said.
At this time, The infrastructure is in place to properly measure what “doesn’t exist today” in a way that allows companies to produce quantities of quality that will meet future demand. They have to build their own factories, which cost hundreds of millions of dollars, or rely on contract manufacturing organizations to manufacture products on their behalf.
“Costs will be the driver for adoption, production costs prevent them from entering supply chains,” Shederovich said. “The method of production for these products will therefore be critical, and Synonym’s key insight is that when it comes to industrial infrastructure, production outpaces inflation rather than mass adoption.”
Backed by startups like Planetary and Culture Biosciences, the global contract biomanufacturing organization market is estimated at $22.2 billion by 2021 and is expected to double by 2030.
Lachter says what Planetary is doing is “really trying to close the capacity gap in fermentation.” But what differentiates Synonym is its approach to focus more on the production and finance of buildings than the traditional CMO model.
The co-founders say the company is still very much in its early stages, and their most important milestone is starting development of its first building, which includes site selection and initial designs. They expect the facility to be operational in the third quarter of 2023.
construction We will continue to do so in the coming months with announcements about architecture and other development partners.