Agronomics, a player in the clean food investment space, has announced that its portfolio company, Liberation Labs, has successfully closed a $50.5 million funding round.

This includes a $31.5 million convertible note and $19 million in insider bridge notes raised throughout 2024, contributing to a total of $125.5 million in deployable capital for the company.

The funding round attracted participation from notable investors, including NEOM Investment Fund, Siddhi Capital, and Meach Cove Capital. Agronomics itself has committed $7.4 million to this round, reinforcing its belief in Liberation Labs' potential to reshape the industrial biotechnology landscape.

Liberation Labs aims to address capacity bottlenecks in the fermentation sector through its Bio3 platform – a purpose-built biomanufacturing facility currently under construction in Richmond, Indiana. The plant is designed to feature 600,000 litres of fermentation capacity and is expected to be operational by the end of 2025.

The site was selected based on critical factors such as access to sugar inputs, labour availability, utility rates and the regulatory environment, along with government incentives.

The facility also has the potential for future expansion, with plans to increase capacity by an additional 4 million litres. Notably, Liberation Labs has already secured Letters of Intent (LOIs) from several large companies for over 200% of the available capacity for the first five years of operation, indicating strong market demand for its services.

In addition to private investment, Liberation Labs has received a $25 million loan guarantee from the US Department of Agriculture, aimed at supporting the completion of the biomanufacturing facility. This backing underscores the growing interest from both government and industry stakeholders in advancing biotechnology solutions that can enhance food production capabilities.

Agronomics continues to express confidence in Liberation Labs, citing the increasing demand for diversified and secure supply chains from both governmental entities and large corporations. The company anticipates that Liberation Labs will achieve breakeven in its first year of operations, driven by the pressing need for fit-for-purpose biomanufacturing capacity.

Agronomics has invested a total of $25.03 million in Liberation Labs, representing approximately 19.6% of Agronomics' last published Net Asset Value as of September 30, 2024. The current funding round, structured as a Convertible Loan Note, will convert into equity upon the next equity financing. Agronomics retains a 37.7% stake in Liberation Labs.

Jim Mellon, executive chair of Agronomics, highlighted the strategic importance of this funding round, commenting: "Liberation Labs is developing state-of-the-art fermentation infrastructure to transform the world's existing fermentation capacity".

He continued: "This novel approach has never previously been attempted. The completion of this significant funding raise showcases the consistent and growing demand from startups, large multinational corporations and governments alike and is testament to the strength of the team led by Mark Warner and their successful execution of the strategy."

This initiative is positioned to meet the rising global demand for precision fermentation proteins, which are increasingly sought after in various sectors, including food and beverage.

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