Montreal-based Inocucor, a company producing sustainable biological crop products, has just closed a $38.8 million Series B round. The first close is led by TPG Alternative and Renewable Technologies (TPG ART), a late-stage capital venture vehicle focused on companies reducing environmental impact and promoting resource efficiency.
Inocucor uses a patented fermentation process to make soil and plant optimizers that are safe for people and the environment. The products are meant to improve crop yields, shorten growing periods, and create healthier, more resilient soils for farmers and greenhouse growers.
The funds will go toward opening a US-based headquarters and commercialization office, increasing manufacturing capacity at Inocucor’s Montreal R&D facility, and adding managerial and scientific expertise to Inocucor’s staff.
Inocucor’s president and CEO Donald R. Marvin said that the specialty agriculture sector has a need for sustainable ways to help growers improve their crop yields.
“Our corporate strategy includes staking our claim as a market leader in this emerging segment by growing organically with our own proprietary microbial consortia technology, while also pursuing strategic acquisitions and product development partnerships in North America, Latin America, and Western Europe,” said Marvin.
In June 2016, Inocucor raised $6 million in its Series A round. Several of the same investors participated in both rounds, including Cycle Capital Management, a Montréal cleantech venture capital fund which made its first investment in Inocucor in 2013; Desjardins Innovatech, another original investor; and Philadelphia-based Closed Loop Capital, which invests in agriculture technologies.
“Inocucor has come a long way since our first investment. It has products on the market, being used by growers who are experiencing positive results. The promise we saw in those early days is coming to fruition,” said Andrée-Lise Méthot, founder and managing partner of Cycle Capital Management.
Inocucor is developing new products including bio-control formulas that combat diseases which significantly affect the economy, such as in strawberries, tomatoes, and potatoes.