Agronomics Limited Fuels Sustainable Future with GALY's $33 Million Series B Financing
September 4, 2024, 3:30 pm
Location: United States, Massachusetts, Boston
Employees: 51-200
Founded date: 2019
Total raised: $64.6M
Location: United Kingdom, England, City of London
Employees: 10001+
Total raised: $2.9B
In a world grappling with climate change, Agronomics Limited has taken a bold step forward. The company recently announced that its portfolio company, GALY CO., has successfully raised $33 million in an oversubscribed Series B financing round. This funding, led by Breakthrough Energy Ventures LLC, signals a growing confidence in cellular agriculture as a solution to some of the planet's most pressing challenges.
Founded in 2019, GALY CO. aims to revolutionize the cotton industry. Traditional cotton farming is notorious for its heavy water usage and pesticide reliance. In contrast, GALY Cotton is a game-changer. It replicates the quality of conventional cotton while drastically reducing environmental impact. This innovative material uses 99% less water and 97% less land. It emits 77% less CO2, paving the way for a more sustainable future.
The Series B funds will primarily support GALY's research and development efforts. The company is focused on enhancing its cellular agriculture platform and scaling up production of GALY Cotton. This is not just about creating a new product; it’s about reshaping an entire industry. The potential for cost parity with traditional cotton is on the horizon, making this a significant milestone.
Investors are taking notice. The financing round attracted participation from notable players, including H&M Group Ventures and Industria de Diseño Textil, S.A. This diverse backing highlights the widespread recognition of the need for sustainable solutions in agriculture. The fashion and textile industries are under increasing pressure to adopt environmentally friendly practices. GALY Cotton fits the bill perfectly.
The company has also secured proof-of-concept agreements with major industry players. Additionally, a 10-year, $50 million offtake agreement with Suzuran Medical Inc., a Japanese medical supplies manufacturer, underscores the demand for GALY Cotton. This partnership not only validates the product but also opens doors to new markets.
Agronomics has invested a total of $1.5 million in GALY across its Pre-Series A and Series A rounds. Following this latest financing, Agronomics will carry its investment forward at a book value of £2.6 million. This represents a multiple on invested capital (MOIC) of 2.2x and an internal rate of return (IRR) of 28%. Agronomics now holds a 3.3% equity stake in GALY, reflecting its commitment to sustainable agriculture.
The urgency of GALY's mission cannot be overstated. Climate change is reshaping agricultural landscapes. The fragility of supply chains is becoming increasingly apparent. Recent spikes in cocoa prices serve as a stark reminder of the volatility that lies ahead. As extreme weather events become more frequent, the need for resilient agricultural solutions grows.
GALY's CEO emphasizes the critical role of their technology in adapting to these changes. The company is not just reacting to current challenges; it is proactively preparing for a future where conventional agriculture may struggle to keep pace. By harnessing cellular agriculture, GALY aims to equip economies to withstand the shocks of climate change.
Jim Mellon, Co-Founder and Executive Chair of Agronomics, highlights the environmental burden of traditional cotton production. Cotton farming consumes vast amounts of water and pesticides, making it one of the most resource-intensive crops. GALY's biomanufactured cotton offers a sustainable alternative. This innovation could significantly reduce the ecological footprint of cotton across various industries, from textiles to medical supplies.
The implications of GALY's success extend beyond cotton. The company's foundational technology has the potential to be applied to other crops, expanding its impact across the food and beverage sectors. This versatility positions GALY as a leader in the cellular agriculture space, with the ability to address multiple challenges in the agricultural landscape.
Agronomics, as a leading investor in cellular agriculture, is at the forefront of this transformative movement. The company has built a diverse portfolio of over 20 companies focused on sustainable food production. Its mission is clear: to invest in technologies that decouple supply chains from environmental degradation and animal welfare concerns. This vision aligns with the growing demand for sustainable practices in food production.
As the world faces an expanding population and dwindling resources, the need for innovative agricultural solutions becomes critical. Agronomics and GALY are paving the way for a future where sustainability is not just an option but a necessity. The $33 million raised in Series B financing is more than just capital; it is a lifeline for a planet in need of change.
In conclusion, the successful financing of GALY CO. marks a significant milestone in the journey toward sustainable agriculture. With a commitment to reducing environmental impact and enhancing agricultural resilience, GALY is poised to lead the charge. As investors rally behind this vision, the potential for a greener, more sustainable future becomes increasingly tangible. The seeds of change have been sown, and the world is watching.
Founded in 2019, GALY CO. aims to revolutionize the cotton industry. Traditional cotton farming is notorious for its heavy water usage and pesticide reliance. In contrast, GALY Cotton is a game-changer. It replicates the quality of conventional cotton while drastically reducing environmental impact. This innovative material uses 99% less water and 97% less land. It emits 77% less CO2, paving the way for a more sustainable future.
The Series B funds will primarily support GALY's research and development efforts. The company is focused on enhancing its cellular agriculture platform and scaling up production of GALY Cotton. This is not just about creating a new product; it’s about reshaping an entire industry. The potential for cost parity with traditional cotton is on the horizon, making this a significant milestone.
Investors are taking notice. The financing round attracted participation from notable players, including H&M Group Ventures and Industria de Diseño Textil, S.A. This diverse backing highlights the widespread recognition of the need for sustainable solutions in agriculture. The fashion and textile industries are under increasing pressure to adopt environmentally friendly practices. GALY Cotton fits the bill perfectly.
The company has also secured proof-of-concept agreements with major industry players. Additionally, a 10-year, $50 million offtake agreement with Suzuran Medical Inc., a Japanese medical supplies manufacturer, underscores the demand for GALY Cotton. This partnership not only validates the product but also opens doors to new markets.
Agronomics has invested a total of $1.5 million in GALY across its Pre-Series A and Series A rounds. Following this latest financing, Agronomics will carry its investment forward at a book value of £2.6 million. This represents a multiple on invested capital (MOIC) of 2.2x and an internal rate of return (IRR) of 28%. Agronomics now holds a 3.3% equity stake in GALY, reflecting its commitment to sustainable agriculture.
The urgency of GALY's mission cannot be overstated. Climate change is reshaping agricultural landscapes. The fragility of supply chains is becoming increasingly apparent. Recent spikes in cocoa prices serve as a stark reminder of the volatility that lies ahead. As extreme weather events become more frequent, the need for resilient agricultural solutions grows.
GALY's CEO emphasizes the critical role of their technology in adapting to these changes. The company is not just reacting to current challenges; it is proactively preparing for a future where conventional agriculture may struggle to keep pace. By harnessing cellular agriculture, GALY aims to equip economies to withstand the shocks of climate change.
Jim Mellon, Co-Founder and Executive Chair of Agronomics, highlights the environmental burden of traditional cotton production. Cotton farming consumes vast amounts of water and pesticides, making it one of the most resource-intensive crops. GALY's biomanufactured cotton offers a sustainable alternative. This innovation could significantly reduce the ecological footprint of cotton across various industries, from textiles to medical supplies.
The implications of GALY's success extend beyond cotton. The company's foundational technology has the potential to be applied to other crops, expanding its impact across the food and beverage sectors. This versatility positions GALY as a leader in the cellular agriculture space, with the ability to address multiple challenges in the agricultural landscape.
Agronomics, as a leading investor in cellular agriculture, is at the forefront of this transformative movement. The company has built a diverse portfolio of over 20 companies focused on sustainable food production. Its mission is clear: to invest in technologies that decouple supply chains from environmental degradation and animal welfare concerns. This vision aligns with the growing demand for sustainable practices in food production.
As the world faces an expanding population and dwindling resources, the need for innovative agricultural solutions becomes critical. Agronomics and GALY are paving the way for a future where sustainability is not just an option but a necessity. The $33 million raised in Series B financing is more than just capital; it is a lifeline for a planet in need of change.
In conclusion, the successful financing of GALY CO. marks a significant milestone in the journey toward sustainable agriculture. With a commitment to reducing environmental impact and enhancing agricultural resilience, GALY is poised to lead the charge. As investors rally behind this vision, the potential for a greener, more sustainable future becomes increasingly tangible. The seeds of change have been sown, and the world is watching.