Sustainable fertilizer start-up Phospholutions Inc., State College, Pa., on Jan. 19 announced $10.3 million in Series A funding led by Continental Grain Co. Other investors include Tekfen Ventures and Ag Ventures Alliance Cooperative, as well as earlier investors Maumee Ventures LLC, the venture capital subsidiary of The Andersons Inc. and 1855 Capital (GM June 14, 2019).
The company said the funding will be used to accelerate growth and allow the company to address larger market opportunities.
“We anticipate more than doubling our team over the next year to support our entry into broad-acre crop production,” said Phospholutions CEO Hunter Swisher.
After focusing its launch for turf and ornamental markets, the company said the technology also demonstrated cost savings and environmental benefit for row crops like corn and soybeans. As a result, the company is now focused on establishing a farmer network and partnerships necessary to commercialize these applications.
Phospholutions’ signature technology, RhizoSorb®, is a soil amendment or fertilizer additive used to deliver phosphorus and other nutrients to crops. The company said it has seen dramatic declines in use rates of fertilizer products – sometimes as high as 75 percent less phosphorus applied – while maintaining crop yields, resulting in stronger grower margins and dramatically improved sustainability.
“Our focus continues to be the betterment of the farmer’s livelihood and the world that we live in,” said Kris Kemeny, Tekfen Ventures Managing Director. “Nutrient runoff degrades our water systems and undernourishes our crops, leading to overuse of fertilizers that are costly – both monetarily and environmentally. We believe that products like RhizoSorb® will continue to help farmers achieve better, more consistent, outcomes.” Tefken is backed by publicly-traded conglomerate Tefken Holding.
“Phospholutions has the potential to solve systemic issues around fertilizer application in several key crops, said Chris Abbott, Co-Head of Continental Grain’s venture capital strategy. “We are excited to partner with the Phospholutions team to help commercialize this technology globally, which we believe will positively impact key issues around soil health, water quality, and grower profitability.”
In the past year, Phospholutions said it has added two executives to drive its growth into new markets: Bob Young, Chief Commercial Officer, who brought 35 years of experience with fertilizer and crop protectants; and Aaron Waltz, Ph.D., Chief Technology Officer, who has more than 20 years of research and development experience in transgenic trait evaluation, crop protection, and agrochemical manufacturing.