Genomatica Pulls IPO, Opts for $41.5 Million in New Funding

Green chemicals company Genomatica has withdrawn its IPO.

Instead, it has raised another $41.5 million in Series D
preferred stock funding from a group that includes a new strategic investor,
Italy’s largest chemical company Versalis.

Existing investors Alloy Ventures, Draper Fisher
Jurveston, Mohr Davidow Ventures, TPG Biotech, VantagePoint Capital Partners
and Waste Management also contributed to the new round.

Genomatica’s first commercial product, Bio-BDO, is a
"green" version of 1,4-butanediol (BDO) made from renewable
feedstocks rather than oil or natural gas. BDO, an intermediate chemical with a
$4 billion dollar market worldwide, is used to make spandex, automotive
plastics, running shoes and more.

Genomatica signed a strategic agreement last February
with Waste Management
(NYSE: WM) to advance its manufacturing processes which
turn municipal solid waste into chemicals.

It filed an IPO last August, but said current market
conditions make private financing its best current option to raise new capital.
The new round brings total investments in the company to about $127.5 million.

"After evaluating all of our financing options we
are determined that this private financing was the most attractive option for
Genomatica and in the best interests of shareholders," says Christophe
Schilling, CEO of the San Diego-based company. "We’re especially pleased
by the vote of confidence that will help us bring our first process for BDO
into commercial production by our partners."

Other recent developments for Genomatica include:

  • A joint venture with Novamont for industrial-scale BDO
    production in Europe, with initial products expected in 2013
  • A strategic relationship with Mitsubishi Chemicals (and
    $3.5 million) that covers a joint commercial operation in Asia
  • A memorandum of understanding in July 2012 with Versalis
    and Novamont that will focus on creating bio-based butadiene, which is used to
    produce rubber for tires, appliances, footwear and so on

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