International. The bio-based materials and chemicals industry is poised to attract about $1 billion in investment this year, led mainly by late-stage funding rounds, according to Lux Research.
The estimated investment of US$974 million represents a 28% increase from 2013, suggesting that companies weathered the waves of economic upheaval have grown mature and regained investor confidence.
"Over the past two years, funding for bio-based materials and chemicals has shifted decisively towards late-stage rounds, reflecting the growing maturity of the industry and the shift from R&D to production," said Meraldo Antonio, associate at Lux Research. "The participation of corporate investors has also increased," he added, "suggesting that large multinationals in many sectors view bio-based materials as of strategic importance."
The study also indicated that North American companies dominate, driven by technology and entrepreneurship of an investment-friendly environment. These companies cornered 87%, or $2.2 billion of total venture capital funds for the sector over the past three years.
