Key Takeaways
- Locus Fermentation Solutions closed an oversubscribed $20 million convertible note round led by Hudson Bay Capital at a $100 million valuation.
- The investment brings the company’s 2025 growth capital to more than $40 million.
- Funds will support U.S.-based biomanufacturing expansion and commercialization across oil & gas, mining, agriculture, and industrial/CPG sectors.
- Locus FS is currently the only U.S. producer of TSCA-approved glycolipid biosurfactants at commercial scale.
- The company reported double-digit growth and more than 50 new customers in 2025.
Locus Fermentation Solutions Secures Oversubscribed Growth Investment
Locus Fermentation Solutions (Locus FS), a U.S.-based biotechnology company focused on performance-enhancing bio-based additives, announced the close of a $20 million convertible note financing round at an equity valuation of $100 million. The oversubscribed round was led by Hudson Bay Capital, with participation from company leadership and the option to upsize the financing.
The new capital brings Locus FS’s total funding raised in 2025 to more than $40 million. According to the company, the proceeds will be used to expand domestic biomanufacturing capacity, accelerate commercialization, and advance product development across four core markets: oil & gas, mining, agriculture, and industrial and consumer packaged goods formulations.
“This funding signals strong confidence in the future of Locus Fermentation Solutions,” said John Uhran, CEO of Locus FS. “Building on strong double-digit growth, including the acquisition of over 50 new customers in 2025, we have the team, technology, and momentum to scale our biomanufacturing platforms and glycolipid molecules.”
Locus Fermentation Solutions Expands U.S. Bio-Based Chemistry Platform
Scaling Domestic Production and Commercial Reach
The investment will support expanded U.S. fermentation and downstream processing infrastructure, alongside commercial growth initiatives and new product launches. Locus FS plans to leverage its patent portfolio and deploy digital tools and analytics to optimize operations and market execution.
Locus FS produces non-GMO, palm-free glycolipid biosurfactants that offer high performance with lower toxicity and improved biodegradability compared to conventional petrochemical surfactants. The company states it is currently the only U.S. manufacturer able to supply TSCA-approved glycolipids at commercial-scale volumes.
“We’re seeing a global push toward performance-based sustainability in formulations,” said Matt Russell of Hudson Bay Capital. “Locus FS delivers bio-based solutions that are engineered to outperform conventional chemistry and are already being deployed at scale.”
Market Traction Across Energy, Agriculture, and Industrial Applications
Locus FS reported growing adoption across its target sectors. In oil and gas, its glycolipid-enhanced treatments are being used to improve production while meeting environmental compliance requirements. In mining, the biosurfactants support improved efficiency in leaching and flotation processes. In agriculture, the company’s biological and glycolipid-based treatments have demonstrated yield and return-on-investment gains across multiple major crops. Industrial and CPG customers are using Locus formulations to reduce surfactant load while maintaining performance and clean-label objectives.
