Comet Bio lands US$22M to bolster upcycled fiber and alternative sweetener production
14 Jul 2021 --- COMET Bio has closed its series C funding round at US$22 million, which will allow the company to invest in a dedicated manufacturing facility to grow the supply of its upcycled ingredients, including prebiotic dietary fiber and low-sugar syrups.
“We will also be investing in innovation, including our product pipeline and health claims development. These funds will enable us to meet the significant market demand for our healthy ingredients,” says Rich Troyer, CEO of Comet Bio.
Comet Bio’s Arrabina Arabinoxylan Plant Fiber Extract is a premium prebiotic dietary fiber that boasts superior tolerability and functionality. According to the company, it’s clinically proven to promote the growth of beneficial bacteria in the gut, help maintain healthy blood glucose levels and support immunity.
Late last year, the ingredient featured in Inner Life!’s prebiotic drink mix for digestive health and immunity.
Tapping into key demands
Troyer notes that the prebiotic category is valued at close to US$6 billion and is expected to exceed 10 percent CAGR in the coming years.
The company also offers Sweeterra syrups, marketed as a sustainable and lower sugar alternative to traditional sweeteners with no trade-offs in taste and performance.
“We have seen firsthand the growing consumer demand for ingredients that address gut health and sugar reduction,” says Troyer.
According to Innova Market Insights, 30 percent of global consumers say that improving gut or digestive health is among the most desirable health and wellness functions that an F&B product might offer.
Meanwhile, 91 percent of consumers are “at least a little” influenced by sugar reduction claims.
“In addition, every single food company we’re talking to is looking to reduce food system waste. These strategic investor partnerships will enable us to meet this significant market opportunity and take Comet Bio to the next level,” Troyer adds.
Louis Dreyfus Company, a merchant and processor of agricultural goods, was among the investors.
Attracting major investors
The round was led by Open Prairie, a multi-faceted private equity fund management firm with headquarters in Illinois, US.
“Open Prairie is excited to leverage its team expertise and network to advance commercialization of Comet Bio’s ingredient technology platform,” says Tom Doxsie, a partner in the firm.
It will also facilitate diversification of US-focused distribution channels that benefit the Open Prairie Rural Opportunities Fund’s investment objective of catalyzing growth for agriculture and the rural US.
Other investors include Louis Dreyfus Company (LDC), BDC Capital and existing investor Sofinnova Partners.
“We see tremendous potential for nutritious ingredients from upcycled agricultural materials and believe Comet Bio is well-positioned to capture this opportunity,” says Max Clegg, head of LDC Innovations.
Edited by Katherine Durrell
