BOSTON, Mass.—Bio-based materials and chemicals are poised to attract nearly $1 billion in investment in 2014, led notably by later-stage funding rounds, according to Boston-based firm Lux Research.
The estimated $974 million investment represents a 28 per cent increase from 2013, suggesting companies that endured the waves of economic disruption have regained investors’ confidence.
“Over the last two years, funding for bio-based materials and chemicals has shifted decisively toward later-stage rounds, reflecting the growing maturing of the industry and the shift from R&D to production,” said Meraldo Antonio, Lux Research Associate and the lead author of Dynamics of Venture Capital Funding in the Bio-based Chemicals Industry.
“Participation of corporate investors has also increased,” he added, “suggesting that large multinationals in many industries see bio-based materials as strategically important.”
Lux Research analysts studied the investment landscape for BBMC, evaluating VC, corporate VC, IPOs, and M&A activity. Among their findings:
The full report, Dynamics of Venture Capital Funding in the Bio-based Chemicals Industry, can be purchased from Lux Research Bio-based Materials and Chemicals Intelligence service.