LS9, a US-based developer of plant-based fuels and chemicals, has raised $30m in its series D round led by the world’s biggest asset manager, BlackRock, as a new investor.
BlackRock Private Equity Partners manages $6.4bn primarily to invest in third-party funds, although it does also do some co-investing in deals. When asked whether LS9 was the start of more active venture investing, a managing director said: "Yes, will hope to be doing more in the future."
The other members of LS9’s D round were CTTV Investments, the corporate venturing unit of oil major Chevron’s Technology Ventures subsidiary, and venture capital firms Flagship Ventures, Khosla Ventures and Lightspeed Venture Partners.
Ed Dineen, executive president of LS9, who joined earlier in the month from being chief operating officer of chemicals company LyondellBasell Industries, said: "With BlackRock, the world’s largest asset manager, joining our investor group, and given [its] increasing focus on renewables, this will benefit LS9 in a number of ways. With this new round of funding, LS9 will be able to accelerate implementation of our plans to commercialize our technology and grow our product portfolio."
Dineen replaced Bill Haywood who had been chief executive of LS9 from September 2008.
LS9’s technology in a pilot plant has used a one-step fermentation process to convert renewable plant-based materials into fuel and chemical products and it agreed to buy a larger-scale production facility in Florida in January.
In September last year, LS9 raised $25m in its C round from CTTV Investments, Flagship, Khosla and Lightspeed. The C round was four months after LS9 agreed a strategic partnership to produce chemicals for consumer group Procter & Gamble.
The company’s A and B rounds raised a combined $20m in 2007.