Israeli seed-breeding startup Equinom has raised $4 million from Israeli-based private equity fund Fortissimo Capital. This is the first installment of Fortissimo's investment as part of Equinom's third financing round.
Based at Kibbutz Givat Brenner near Rehovot is focused on the development of specialized crops for the food industry. Equinom, which was founded in 2012, has previously raised a total of $2.25 million from Hazera (1939) Ltd., a leader in seed development and field crops, and private investors Michael and Gabriel Danziger, owners of The Danziger Group.
Equinom’s advanced breeding technology is based on proprietary algorithms and calculation methods developed by the company, which combine classic breeding with genomic and bio-informatics methods. The company’s primary products are high-protein legumes and sesame seeds for oil and tahini.
Equinom has developed legume seed varieties - pea, chickpea and cowpea - containing 50% more protein than any commercial variety available on the market. In a market challenged by the growing worldwide demand for sustainable, non-GMO, plant-based protein sources, an increase in protein levels represents significant financial gain to protein processors and food companies.
Equinom’s second product line, sesame for oil and tahini, transforms the economics of the sesame market by solving a problem that has troubled the world of agriculture for decades: Despite worldwide sales of sesame exceeding $8 billion annually, the necessity of manual harvesting has limited the supply of sesame to third world countries where manual labor is available on a large scale. Addressing this challenge, Equinom developed high-yield sesame varieties suitable for mechanical harvesting, thus opening the supply chain to production anywhere in the world. Equinom’s sesame is in pre-commercial stages in the US and Australia, and is expected to hit the market in 2019.
To date, Equinom has signed a number of breeding contracts with leaders in the food industry including a multi-year contract with Sabra Dipping Company, LLC, a joint venture of PepsiCo, Inc. (NYSE: PEP), and the Strauss Group Ltd.
Equinom founder and CEO Dr. Gil Shalev said, “Using the technology developed by Equinom, we significantly increased the level of protein in legumes, and are contributing to creating market conditions that will eventually lower the cost of legume based protein, and creating food alternatives based on sustainable, non-GMO, sources. The investment from Fortissimo gives Equinom financial backing, allowing us to both continue accelerating the development of seeds and their commercialization in the USA and Australia. Equinom continues to create new plant-based proteins, and I believe that we are only a few years away from introducing new products that will allow the creation of the world’s future foods on a mass-market scale."
Fortissimo Capital founder and managing partner Yuval Cohen sees the investment as part of the firm’s overall investment strategy in agriculture in general and seed companies in particular, which also included an investment in Origene Seeds. “Equinom has proved that with the implementation of ground-breaking, non-GMO technology, it is possible to achieve what was once considered impossible in seed breeding. Fortissimo is committed to stand by Equinom on the journey to realizing the company’s vision of creating the foods of the future.”
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2017
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