Marrone Organic Innovations raises $10M for green pesticides
Marrone Organic Innovations, a Davis, Calif.-based based maker of natural pesticides and weed killers, has wrapped up a $10 million second round of funding and expects a second closing of $1 million later this month. The round was led by Stuart Mill Venture Partners and Contrarian Group; returning investors included One Earth Capital, Saffron Hill Ventures, Clean Pacific Ventures, Wavepoint Ventures and local angel investors.
Marrone will use the proceeds to develop and commercialize six new pest management products and to fund its ongoing R&D efforts. One of those products, CEO Pamela Marrone told the Dow Jones Environmental Ventures conference a few months ago, will be a competitor to Roundup, a popular herbicide.
The company identifies naturally occurring microorganisms with herbicidal or pesticidal properties and tests them. If they meet its criteria, it grows them in vats and bottles them. Its first product, GreenMatch EX, was unveiled in February. The burndown herbicide, which is based on lemongrass oil, controls weeds on certified organic cropland.
Marrone reported total annual sales of $700 million and expects that figure to reach $1 billion by 2010. Since only around 11 percent of pesticides currently come for natural sources, Marrone sees a lot of room for growth in her company’s bottom line.
Other companies tapping this growing sector include Davis, Calif.-based AgraQuest, which raised $20 million last December, and Alpharetta, Georgia-based EcoSmart Technologies, which raised $5 million in June. Marrone raised $3.75 million in first round funding last year.
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About the Author, Jeremy Jacquot
Jeremy Jacquot is a doctoral student at the University of Southern California who is studying watershed management and global biogeochemical cycling. He previously studied marine biology at UCLA where he earned his B.S. in 2005; he is the Los Angeles correspondent for TreeHugger, where he focuses on science/technology and business news.