Dynamics of Venture Capital Funding in the Bio-based Chemicals Industry

September 29, 2014 | State of the Market Report

Following a drop in investment caused by the financial crisis, venture capital (VC) investment in bio-based materials and chemicals (BBMC) came back with a boom. VC investment rose steadily and reached a peak of $1.3 billion in 2011. However, the lackluster performances of both public and private BBMC companies led investors to place smaller bets in recent investment. In this report, we dig into investment in the tumultuous BBMC space, analyzing VC, corporate VC, initial public offering (IPO) activity, and acquisitions.

Coverage Areas

  • Accelerating Materials Innovation
  • Bio-based Materials and Chemicals

Table of Contents

  • Executive Summary
  • Landscape
    Equity investment in the BBMC space slumped following the 2008 global financial crisis; it recovered after 2009 and peaked at $1.3 billion in 2011.
  • Analysis
    Investors flock to a few main technologies and feedstocks; post-IPO companies struggle to increase their stock price, and acquisitions heat up.
  • Outlook
  • Endnotes

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