US-based biotechnology company Verdezyne has agreed the key terms for a $48m funding round led by Malaysia-based conglomerate Sime Darby Berhad, which also included petroleum producer BP and nutrition and mineral technology company DSM.
Founded in 2005, Verdezyne develops yeast strains intended to make the production of biochemical more cost-effective. It will invest the funds in US-based technology development and in launching projects with Sime Darby subsidiary Sime Darby Renewables.
Verdezyne participated in the round alongside BP’s corporate venturing unit BP Alternative Energy Ventures, as well as DSM subsidiary DSM Venturing, OVP Venture Partners, and Monitor Ventures. The company, which secured $9.4m from a 2011 funding round, has now raised $74.3m in equity and $16.6m in debt financing.
“We see this investment as symbolic of stronger business ties between the two countries, and the beginning of a long-term partnership with Verdezyne,” said Sime Darby CEO Tan Sri Mohd Bakke.
“Sime Darby’s investment will accelerate the development of Verdezyne’s technology and create opportunities to leverage our sustainable palm based materials into higher-value downstream renewable products.”