With $6.3 million in pre-seed capital, Synonym Biotechnologies has begun the development phase for its first productized bio-manufacturing facilities.
In January of 2022, Edward Shenderovich and Joshua Lachter founded the company to develop, finance and build commercial-scale bio-manufacturing facilities to provide synthetic biology producers of all size with flexible production capacity and to give infrastructure investors access to a new, carbon-negative bio-manufacturing asset class
The investment included funds active in decarbonization.
The pre-seed round has allowed us to build an exceptional and well-rounded launch team and establish our product in the market.
The capital will be used to develop the facility. To lay the foundations for our first facility break-ground, we need to hire across our design, engineering and finance teams.
Synonym wants to make it easier for companies to use the standardized designs and standards for financing its fermentation farms so that they can produce better quality bioproducts at a lower cost. The company said on the investor side that it is building an underwriting model.
The company wants to accelerate innovation in this area to meet goals around climate and energy goals, food security and sustainable supply chains.
If bio products reach cost parity with legacy products, this will be possible.
The infrastructure that allows companies to make the quantity at the kind of quality that will meet future demand doesn't exist right now. They can either build their own facility, which costs hundreds of millions of dollars, or rely on contract manufacturing organizations to make their products.
They can't enter supply chains because of the high production costs. Productization precedes financialization which precedes mass adoption when it comes to industrial infrastructure.
The global contract bio-manufacturing organization market is expected to double in size by the year 2030.
Lachter said what Planetary is doing is trying to close the capacity gap in fermentation, but where Synonym differs is its approach to focus more on productization and financialization of facilities.
The co-founders of the company said that the launch of the first facility that includes site selection and initial design was the most important milestone. The ground is expected to be broken in the third quarter of 2020.
Upcoming announcements on construction, architecture and other partners will follow.
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