DSM invests in Minnesota-based green chemistry firm Segetis as part of move to develop biobased performance materials, exploit synergy between its life sciences and material sciences activities
January 7, 2010
– DSM Venturing, the corporate venturing unit of Royal DSM N.V., today announces that it has made an equity investment in US-based green chemistry company Segetis, Inc. Financial details of the investment will not be disclosed.
Segetis, Inc., based in Golden Valley (Minnesota, United States), has developed renewable chemistry which enables the use of non-food agricultural and forestry feedstock for production of sustainable materials. The company produces versatile, cost-effective chemical building blocks (monomers) called levulinic ketals which can be used to make new classes of chemicals and plastics with improved health and environmental footprint as well as novel performance attributes.
In February 2009 Segetis, Inc. opened a semi-works production facility in Minnesota. At its full capacity, the facility produces up to 250,000 pounds per year of chemical and chemical building blocks sourced from renewable resources.
DSM Venturing joins Khosla Ventures and the Malaysian Life Sciences Capital Fund (managed by Burrill & Company) in this financing round. The investment supports DSM’s ambitions to develop bio-based performance materials to meet customers’ growing needs for improved performance and environmental benefits at competitive costs.
Furthermore, the investment is in line in with DSM’s increased focus on exploiting synergy between its Life Sciences and Material Sciences activities. The investment in Segetis, Inc. brings DSM Venturing’s portfolio of current, direct investments to a total of 15.
Babette Pettersen, Vice President New Business Development for DSM’s Performance Materials Cluster comments: “Segetis’ technology platform perfectly fits our vision to increase functionality of materials through sustainable chemistry. We look forward to combining the knowledge of both companies to develop bio performance materials that offer both novel functionality and reduced carbon footprint.”
About Segetis, Inc.
Segetis, Inc., a technology-enabled green chemistry company, produces versatile, cost-effective chemical building blocks, called levulinic ketal monomers that harness the power and reliability of renewable agricultural and forestry resources. These proprietary monomers are backed by a strong intellectual asset portfolio built on filed composition of matter patents and a management team that leverages over 150 years experience in new material and renewable technology commercialization. Segetis uses these bio-based monomers to make chemicals and plastics that address multiple billion dollar markets, transforming the chemical industry by offering unique material properties, cost effective economics and a dramatically improved health and environmental footprint. More information: www.segetis.com.
About DSM Venturing
DSM Venturing is an active investor in start-up companies, which create innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM Venturing's mission is to explore emerging markets and technologies in order to support DSM's innovation and growth strategy. Besides financial support, DSM Venturing supports the start-up companies with DSM’s knowledge, resources and networks in order to establish mutual benefits and learnings. To DSM, venturing is an integral part of DSM’s open innovation approach, focused on teaming up with innovative players all over the world. More information: www.dsm-venturing.com.