Venture capital funding reduced as industry matures

Biorefining Magazine
By Erin Voegele October 24, 2011

A new analysis completed by Lux Research shows venture funding is slowing in the biochemical and biomaterials market. However, the reduced level of venture capital investments is not bad for the industry. Rather, it shows that the sector is maturing.

According to Lux, startups and investors need to retool their strategies to tap newer opportunities as multibillion-dollar acquisitions and a wave of IPOs indicate an impending end to a boom in the nascent biobased chemicals industry. The report, titled “Seeding Investments in the Next Crop of Bio-Based Materials and Chemicals,” states that the biochemical sector received $3.1 billion in venture funding over the past seven years.

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