BASF Venture Capital has invested USD13.5 million in Allylix Inc, a US-based renewable chemicals company. The BASF subsidiary led a USD18.2 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," says Dr Daniela Proske, 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."
"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," says 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."
