Cycle Capital Management led a Series A round of capital raising for biofuels input producer Agrisoma last week. The environment-focused investment firm raised C$8 million ($7 million; €5.5 million). Agrisoma is now looking for a further $4 million, president and chief executive Steve Fabijanski said.
Incumbent investor BDC Venture Capital, a subsidiary of the Business Development Bank of Canada, also took part in the round.
“We’re hoping to attract investors with a strategic interest in clean energy and this sector more generally,” Fabijanski told Agri Investor.
Agrisoma will use the capital to develop its flagship product, a type of carinata oilseed branded Resonance. Carinata is a non-food crop and its oil can be used to create biofuel. The company currently sells its Resonance Carinata seeds to farmers in the US and Canada and will use this funding to expand its commercial reach.
Investor interest into the biofuels sector is picking up, but from a new perspective. “Investors are no longer asking whether biofuel is a viable investment option,” Fabijanski said. Investors are now focusing on securing a regular supply of biofuel plants inputs to support their biofuel plant investments