Locus Fermentation Soluti0ons (Locus FS) – a green tech company that produces biological alternatives to chemicals for advancing decarbonization goals – announced it has secured $117 million in IP-insurance-backed debt financing arranged by Jefferies. This brings the total raise to over $250 million. The funding was driven by the value of Locus Fermentation Solutions’ intellectual property (IP) along with the library of more than 1,300 biomanufacturing technology patent filings.
Markel, Liberty Specialty Markets, CNA, Aspen and Fidelis all joined in a collateral insurance policy based on Locus FS’ IP, which was valued by global professional services firm Aon’s valuation capabilities.
Launched in 2013, Locus FS transforms biologicals made from 100% renewable agricultural resources into alternatives to chemicals that advance ESG goals with better performance and cost metrics. And the cleaner and more sustainable biological ingredients improve profitability and decarbonize the agriculture, energy, mining, industrial, CPG and other sectors.
The company’s success has led to investments and agreements with a variety of other strategic partners like Dow and Anew Climate. And support and funding from these partnerships is also driving commercial adoption of the company’s solutions. Locus FS has become an international leader in biobased solutions that are non-GMO, palm-free and low-carbon. And the company’s biomanufacturing approach involves isolating and fermenting unique microorganisms and the biosurfactants that they produce.
KEY QUOTES:
“The immediate need for solutions that reduce the global carbon footprint has never been more urgent; but production limitations, high costs and inconsistent performance have hindered implementation of biological alternatives. Through scientific breakthroughs backed by intellectual property, strategic funding and corporate partnerships, we’re accelerating the pivotal role customized biologicals can play in advancing the decarbonization and ESG goals for our clients.”
— Andrew (Andy) Lefkowitz, chairman and CEO of Locus Fermentation Solutions
“Innovation is a critical ingredient for the growth economy, but intellectual property is its foundation. Aon is working with IP-rich companies like Locus Fermentation Solutions, particularly in the green tech space, to help leverage the potential value of their intangible assets to accelerate their ability to bring these important solutions to market.”
— Lewis Lee, CEO of Aon’s Intellectual Property Solutions
