Key Takeaways:
- Catalera BioSolutions secures an initial round in its $8M Series A funding target, led by S2G Ventures with participation from Farm Credit Canada (FCC) Capital.
- Catalera is an independent company spun out from Terramera, based in Vancouver, and focuses on biological pest control solutions.
- The company’s current product lineup includes RANGO®, SOCORO®, Vaporpad®, and TRIFECTO®, with plans for future portfolio expansion.
- The biological solutions market aims to address concerns related to reliance on synthetic chemicals in agriculture and pest control.
- FCC’s investment marks its first in the Canadian agriculture and food innovation sector.
Series A Funding and Company Launch
Catalera BioSolutions, an independent biological pest control solutions company, announced today the initial close of its Series A funding round. The round was led by S2G Ventures and supported by Farm Credit Canada (FCC) Capital. A second close of the funding round is expected in Q4 of 2024, targeting $8M in funding.
Catalera was launched in mid-May 2024 as a spin-out from Terramera, an ag-tech company based in Vancouver. The company focuses on developing biological products designed to address the challenges associated with the adoption of biological solutions in agriculture and pest control.
Product Portfolio and Market Outlook
Catalera’s product offerings currently include RANGO® for specialty crops, SOCORO® for row crops, Vaporpad® for professional bed bug treatment, and TRIFECTO®, which was recently registered in Mexico. The company has indicated plans to expand its portfolio in the coming years, aiming to introduce several new biological products.
The biological pest control market is emerging as a complement to the synthetic chemistry industry, which has historically played a dominant role in agriculture and consumer pest control. Synthetic chemical solutions have been used for nearly a century, and the growing interest in biological alternatives is attributed to various factors, including concerns over the environmental and health impacts of chemical use.
Leadership Perspectives on Biological Solutions
Matthew Dahabieh, CEO of Catalera, noted that the company has been working on developing biological products for over a decade. He emphasized that the new funding would be used to bring additional products to market, with a focus on safety, effectiveness, and cost competitiveness.
Sanjeev Krishnan, managing partner at S2G Ventures, commented on the broader market conditions, noting the potential for biological solutions to address challenges in agriculture, such as supply chain disruptions and the impacts of synthetic fertilizer use. According to Krishnan, Catalera’s capabilities in biological formulation and its product portfolio position it well for future growth.
FCC’s Role in the Investment
Farm Credit Canada (FCC) Capital’s investment in Catalera marks the first co-investment by the newly created arm of the Canadian lender, which focuses on supporting the agriculture and food sectors. FCC President and CEO Justine Hendricks stated that the investment aligns with FCC’s goal of providing financing solutions for innovative companies that have the potential to advance Canadian agriculture.
Hendricks highlighted FCC’s plans to support Catalera by leveraging the organization’s expertise, data, and relationships in the sector, which may contribute to Catalera’s growth and development.
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