Bioeconomy Fund I
Investing in early-stage companies that are building the Bioeconomy.
Bioeconomy Fund 1 is primarily investing in industrial biotechnology, which includes materials, chemicals, and enzymes. It also encompasses the tools and technologies that enable the Bioeconomy. We are placing capital with companies that are building critical infrastructure for the 21st century global economy.
The rapid market maturation of the Bioeconomy is an enormous investment opportunity. We estimate that U.S. revenues from engineered biological systems were the equivalent of more than 2% of GDP in 2012, or greater than $324 billion, summed across biologis (drugs), crops, and industrial biotech (Source: Rob Carlson, Congressional Briefing, U.S. Senate, 5 Nov 2013; Nature Biotechnology, Mar 2016). The industrial portion of these revenues we estimate to be more than $104 billion and has grown at 10-20% annually for the last decade. From 2010 to 2012 total biotech revenue growth accounted for 6% of total U.S. GDP growth.
Our investment approach: Biology is widely proclaimed as the key technology of the 21st century. We expect advances in biology to profoundly improve the human condition and contribute to the global economy. Bioeconomy Fund 1 is investing primarily in: (i) technologies that enable biological engineering and production; and (ii) companies that use those technologies to produce goods and services. We pay particular attention to opportunities to improve biological engineering and to build novel biological systems. The bioengineering market was estimated to be about $2 billion in 2015, and is forecast to grow 10-fold by 2020 with a CAGR of 45% (Sources: BCC Market Research, Transparency Market Research).
Yet biological engineering is currently very immature when compared to a well-developed discipline such as electrical or aeronautical engineering. What these established fields depend upon, and what is presently lacking in biology, is a quantitative design and build infrastructure composed of predictive simulation, sophisticated test and measurement equipment, and automated assembly and process monitoring. As a comparison, the first product produced by Hewlett Packard was a frequency standard used to calibrate electronics, and the first product shipped by Microsoft was BASIC, a tool to produce software; these seemingly prosaic engineering tools led to the creation of trillions of dollars of new wealth. Fund I is investing in companies that fill this same role of building valuable enabling technologies and processes for the bioeconomy. As bioengineering is applied to the production of additional goods and services, our portfolio companies will generate further enormous value. In summary, Bioeconomy Fund I is investing in companies that are laying the foundation for the rapidly expanding bioeconomy.
This document is neither an offer to sell nor a solicitation of an offer to buy any securities. You should not rely on any information in this presentation in purchasing any securities. The specific terms of any proposed investment would be set forth in the Fund’s Limited Partnership Agreement to be entered between the Fund and each investor. The information contained herein speaks only as of the date hereof and the information may change after that date. Such information also includes “forward-looking statements”. There are many factors that could cause an investor to lose the investor’s entire investment. You should rely on your own investigation and the terms of the Limited Partnership Agreement before making any decision to purchase the Fund’s securities. The information contained in this presentation is not legal, tax, business or financial advice. You should consult your legal, tax, business or financial advisor with respect to your particular circumstances.