MLS, 1955 Capital back US agrochemicals specialist
Crop Enhancement, a US-based company that develops sustainable agrochemicals, has received an $8.5 million Series B round led by the Asia and Americas-focused MLS Capital Fund II and 1955 Capital, a cross-border PE firm set by former Khosla Ventures partner Andrew Chung.
Existing backer Phoenix Venture Partners also participated, while additional financing was provided by Bandgap Ventures, according to a statement. The capital will accelerate development and commercialization of the company's chemicals, which are designed to enhance crop yields, and support expansion into Asia.
Crop Enhancement was founded in 2011 by David Sloane, a serial entrepreneur and specialist in materials science and surface chemistry. His team creates films and formulations that modify plant surfaces to improve resistance to pests and decrease the need for harmful pesticides. These formulations can also be applied to nutrients, fertilizers and other active ingredients, enabling farmers to control their release, thereby reducing costs and increasing yield.
"Crop Enhancement offers an innovative and eco-friendly approach to farming that has applications in many crops around the world - particularly in Southeast Asia. We are very pleased to provide the financial and technical lift to accelerate the commercialization of this important technology, which will help growers boost crop yields through sustainable farming," said Greg Young, managing partner at Spruce Capital Partners.
San Francisco-headquartered Spruce manages MLS Capital Fund II in conjunction with Xeraya Capital, which is controlled by Malaysia's Khazanah Nasional. The vehicle achieved a first close of $150 million in January 2015. A successor to the Malaysian Life Sciences Capital Fund, it invests in plant and animal agriculture, food and nutrition, bio-renewable chemicals, and agriculture-related technologies.
As the Khosla partner responsible for Asia, Chung helped 10 portfolio companies gain a foothold in the region, playing a role in negotiations over joint ventures and licensing deals as well as other localization efforts. He established 1955 in late 2015 and the debut fund reached a first close of $200 million in February. It targets energy, healthcare, food, agriculture, education and sustainable manufacturing.
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