LONDON, ONT. – Comet Bio, which uses its patented upcycling technology to produce ingredients, has completed a Series C funding round with an initial close of $22 million. Open Prairie, a private equity management fund based in Effingham, Ill., led the round. Other investors included Louis Dreyfus Co., BDC Capital and existing investor Sofinnova Partners.
“Thanks to the support of our exceptional investors, we will now be able to invest in a dedicated manufacturing facility to grow the supply of our upcycled ingredients,” said Rich Troyer, chief executive officer of Comet Bio, which has headquarters in London, Ont., and Schaumburg, Ill. “We will also be investing in innovation, including our product pipeline and health claims development.”
Comet Bio’s technology takes crops’ residue left in the field, including straw, leaves and shells, and food leftovers and upcycles them into ingredients. The company’s Arrabina brand of arabinoxylan plant fiber extract, a prebiotic dietary fiber, has been clinically proven to promote growth of beneficial bacteria in the gut, help maintain healthy blood glucose levels and support immunity. The company’s line of Sweeterra syrups is a sustainable and lower sugar alternative to traditional sweeteners with no trade-offs in taste and performance, according to the company.
“According to Global Market Insights, the prebiotic category is valued at close to $6 billion and is expected to exceed 10% CAGR in coming years,” Mr. Troyer said. “We have seen firsthand the growing consumer demand for ingredients that address gut health and sugar reduction. 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.”
Tom Doxsie, a partner in Open Prairie, said, “Open Prairie is excited to leverage its team expertise and network to advance commercialization of Comet Bio’s ingredient technology platform and to facilitate diversification of US-focused distribution channels that benefit the Open Prairie Rural Opportunities Fund’s investment objective of catalyzing growth for agriculture and rural America.”