BRYAN, TEXAS and SAN FRANCISCO — BioVeritas, a bio-based ingredients company, announced Oct. 26 that its shareholder Ara Partners has dedicated $65 million in capital to support the commercialization of BioVeritas’ production process. The company’s process develops clean-label food and feed ingredients, supplements and industrial materials.
Based in Texas, BioVeritas uses a proprietary upcycling and fermenting process to develop bio-based industrial materials, gut health supplements and ingredients for use in human and animal food. In 2021, the company was acquired by private equity Ara Partners, which appointed David Austgen, a veteran in the energy, chemical, biofuel and biochemical industries, to chief executive officer.
The capital provided by Ara Partners will allow BioVeritas upgrade its Market Development Unit (MDU), allowing it to develop large-scale food-grade ingredient samples for its customers and business partners by early 2023. The company has already begun delivering samples of its clean-label ingredients to customers and potential partners for testing.
The capital will also support the construction of BioVeritas’ first commercial scale production facility, which is already underway. The facility is expected to boast a production capacity of 20 kilotons annually and will begin operations in 2025.
“This additional funding commitment accelerates the scale up and commercialization of BioVeritas’ breakthrough technology,” said Corey Steffek, partner at Ara Partners and chairman of the board at BioVeritas. “It also supports BioVeritas’ commitment to being a trusted partner for companies seeking natural, clean-label solutions for food preservation, human and animal health and industrial materials.”
The company produces its solutions by upcycling excess biomass produced from the food and agricultural industries and transforming it into short- and medium-chain fatty acids through the use of microorganisms, creating a closed-loop system. The microorganisms create a natural ecosystem, according to BioVeritas, that mimics anaerobic digestion in humans and animals. The company then recovers organic acids from the microorganisms without using harsh or toxic chemicals.
According to BioVeritas, its system eliminates methane emissions and is one of the most natural and clean ingredient solutions currently available on the market.
“Petrochemicals are part of nearly every aspect of our lives, including our global food supply,” Austgen said. “Our mission at BioVeritas is to decarbonize the global human and animal food, feed and gut health industries by replacing petrochemical ingredients with highly efficacious plant-based natural equivalents, thereby contributing to a healthier population and a more sustainable planet.”
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