BASF Venture Capital GmbH has invested $13.5 million in Allylix Inc., a U.S.-based renewable chemicals company. The BASF subsidiary led a $18.2 million financing round, joined by existing investors Tate & Lyle Ventures, Avrio Ventures and Cultivian Ventures.
Allylix has a proprietary technology platform to produce a wide variety of renewable specialty chemicals, i.e. terpenes and their derivatives, for several industries including flavor and fragrance, food ingredients, cosmetics and other markets. The technology, based on fermentation, allows for the creation of highly pure, renewable compounds that have previously only been available from natural resources in limited quantities.
“Our investment in Allylix could allow us to broaden our use of renewable raw materials for sustainable chemical solutions in the future and leverage our competency in aroma chemicals, nutrition and cosmetic chemicals,” said Daniela Proske, Ph.D., principal at BASF Venture Capital America. “The company has demonstrated the ability to produce high-quality products at scalable commercial quantities and at a lower price point, which is one of several compelling reasons to invest in Allylix.”
Carolyn Fritz, president and chief executive officer of Allylix said “Our biological and cost-competitive manufacturing process for specialty chemicals, such as aroma chemicals, will address the consumer preference for affordable and naturally derived products,” said Carolyn Fritz, Allylix’s president and chief executive officer. “This round of funding will support the development and delivery of new compounds in Allylix’s pipeline, and will allow us to expand the market for our existing products.”
Terpenes and their derivatives are rarely accessible by chemical synthesis and have previously only been available from natural resources in limited amounts. Allylix’s metabolic and protein engineering technology platform is protected by 57 patents, and allows the company to quickly develop and produce by fermentation high-value specialty chemicals at relatively low investment, and at a lower cost than traditional production methods.