Locus Fermentation Solutions (known as Locus FS) has secured more than $40 million in growth capital this year as it ramps up biomanufacturing capacity and expands commercialization of its bio-based additives across oil and gas, mining, agriculture, and industrial and consumer packaged goods markets.
The Solon, Ohio-based biotechnology company said it recently closed an oversubscribed $20 million convertible note round led by Hudson Bay Capital, at an equity valuation of $100 million, with the option to upsize the round. The financing also included participation from company leadership, according to Locus FS.
Locus FS produces performance-enhancing bio-based additives, including glycolipid biosurfactants and microbial blends, that it markets as cleaner, more effective alternatives to traditional chemistry. The company said it is the only U.S. producer of glycolipid biosurfactants with TSCA approval for commercial scale volumes, and that its non-GMO, palm-free ingredients are designed to deliver strong surface activity with lower toxicity and greater biodegradability than conventional surfactants.
The company said the new capital will be used to expand domestic fermentation and downstream processing capacity, accelerate commercial growth and customer acquisition, and advance product development and commercialization of formulated intermediates across its four priority sectors. Locus FS also said it plans to leverage its patent portfolio and deploy digital tools and analytics to improve business performance as it scales.
Locus FS pointed to recent traction as a backdrop for the financing, citing double digit growth and the addition of more than 50 new customers in 2025. It also highlighted use cases across its target industries, including glycolipid enhanced treatments intended to increase production in oil and gas while meeting environmental regulations, biosurfactants designed to improve recovery and efficiency in mining operations, biological and glycolipid based products aimed at boosting crop yields in agriculture, and additives positioned to help industrial and CPG formulators reduce surfactant load while meeting clean label and ESG objectives.
KEY QUOTES:
”This funding signals strong confidence in the future of Locus Fermentation Solutions,” said John Uhran, CEO of Locus FS. “Building on strong double-digit growth, including the acquisition of over 50 new customers in 2025, we have the team, technology and the financial momentum to scale what we do best—formulate and manufacture better performing, cleaner and more effective alternatives to traditional chemistry using our proprietary biomanufacturing platforms and glycolipid molecules.”
John Uhran, CEO of Locus FS
”We’re seeing a global push toward performance-based sustainability in formulations—and Locus FS is delivering exactly that,” said Matt Russell at Hudson Bay Capital. “The company’s glycolipids and microbials aren’t just ‘green’—they’re engineered to outperform conventional options and are already being used successfully at scale.”
Matt Russell, Hudson Bay Capital
