L-R: Steve Rosenbloom, Natalie DiNicola, Tom Snipes, Barney Geddes and Matt Crisp.
Image credit: Lilac Agriculture
<p>The round—led by
‘Almost like they have to buy it as insurance’
Lilac Agriculture is initially targeting pulse growers in the Northern Plains, 90% of whom DiNicola estimates use inoculants.
Grower conversations suggest many see inoculation as important but lack visibility into the return they are getting, she adds. “It’s almost like they have to buy it as an insurance.”
Lilac’s first product—a shelf-stable powder with a six-month shelf life that can be applied using platform extending beyond peas, lentils and beans.
Soybeans offer a relatively straightforward next opportunity because they naturally form nitrogen-fixing nodules with bacteria, she says.
Cereals such as corn do not have the same symbiotic relationship with microbes that naturally colonize plant roots and form nodules, acknowledges DiNicola. However, Lilac’s platform remains applicable. “We’re absolutely intending to move into row crops.”
$5m total capital target to profitability
The new financing round comes amid a tough funding environment for agrifoodtech startups, but Lilac’s relatively capital-light model helped attract investors, she says. The firm had originally targeted $1.5 million but ultimately increased the round to $2.3 million following investor interest.
Lilac is operating with a target of reaching profitability with around $5 million in total capital, adds DiNicola, who has more than 20 years’ experience in the agrifood industry, including senior roles at Monsanto and Benson Hill.
“I’m a scientist by training, and I love really complex, hairy science. But in this environment, what we need is a very practical approach. We’re layering advanced technology on top of something farmers already use and getting into the market quickly.”
The new funding will support expanded field trials, further development of Lilac’s R&D platform, wider commercialization of PL11 and preparations to enter Canada.
Further reading:
Can microbes supply half a crop’s nitrogen? Pivot Bio thinks so
Switch Bioworks tests ‘switchable’ nitrogen-fixing microbes in corn for fertilizer
Mafix raises $5.4m to activate silicate rock into climate-smart fertilizer
Stenon bags $20.5m to combat fertilizer price hikes with better nitrogen management
