money moves

Houston chemicals company raises $357M, claims unicorn status

Solugen closed its Series C funding round at $357 million to grow its chemical products. Photo via Getty Images

Houston-based Solugen, a startup that specializes in combating carbon dioxide emitted during the production of chemicals, has hauled in $357 million in a Series C funding round. That amount eclipses the size of any Houston VC funding round this year or last year.

The Series C round lifts Solugen's pre-money valuation to $1.5 billion, according to the Axios news website. This gives Solugen "unicorn" status as a startup with a valuation of at least $1 billion.

Singapore-based GIC and Edinburgh, Scotland-based Baillie Gifford led the round, with participation from Temasek Holdings, affiliates of BlackRock, Carbon Direct Capital Management, Refactor Capital, and Fifty Years.

Since its founding in 2016, Solugen has raised more than $405 million in venture capital, according to Crunchbase.

"Solugen's vision for cleaner chemicals through synthetic biology has the potential to be a fundamental shift in how chemicals are made, to help tackle the environmental challenges we face globally. The chemical market itself is colossal, and Solugen is just getting started," Kirsty Gibson, investment manager at Baillie Gifford, says in a September 9 news release.

Solugen's patented Bioforge processes produce "green" chemicals from bio-based feedstocks. These chemicals are aimed at reducing or eliminating carbon emissions from chemical producers. The Series C funding will help Solugen expand the Bioforge platform and broaden the reach of Solugen's products.

Carbon dioxide from chemical production ranks among the greatest contributors to industrial greenhouse gas emissions.

CNBC explains that Solugen designs and grows enzymes that can turn sugar into chemicals needed to make an array products used in many industrial settings. The company's bio-based chemical offering already includes water treatments, a chemical that makes concrete stronger, another chemical that makes fertilizers more efficient, and detergents that are strong enough to clean a locker room or mild enough to be used for facial wipes, according to CNBC.

"This fundraising round allows us to continue expanding the footprint of our Bioforge technology to give industries the products they need to reduce emissions in their existing supply chains, without compromising on performance or economics," Sean Hunt, co-founder and chief technology officer of Solugen, says in the news release.

Three days before the funding announcement, Solugen made news of a different sort.

Axios reported September 7 that Solugen plans to open a new R&D facility outside Texas because many of the state's social policies — including its abortion restrictions — are making it hard to recruit employees.

Solugen employs about 115 people, most of whom work from its Houston headquarters, Axios says. The startup plans to more than double its R&D capability over the next two years, representing around 100 jobs, with most of those workers expected to be assigned to a new facility that will be set up in California or Massachusetts.

"We want to make sure we're hiring the top enzymologists and chemical engineers," Solugen CEO Gaurab Chakrabarti tells Axios. "We've come to the conclusion after talking to lots of candidates that they want to join Solugen, but they don't feel comfortable coming to Texas, so for us it's become a no-brainer to have R&D facilities elsewhere."

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Building Houston

 
 

Looking to mix things up in your career? Elon's got a gig for you slinging cosmic cocktails. Mixology Crew

Can you mix a mean margarita? Are you capable of slinging a superb Aperol spritz? If so, Elon Musk wants you to become a "spaceport mixologist."

Musk's SpaceX, which builds and launches rockets, is hiring a "passionate, experienced" mixologist for its "spaceport" near Brownsville. The ideal candidate possesses at least two years of "superior" mixology experience at resorts, bars, and full-service restaurants, including the ability to pair drinks with themed menus.

Among other duties, the mixologist will prepare drinks, including handcrafted cocktails, and will ensure "consistency and compliance with the restaurant's recipes, portioning, and waste control guidelines."

The new mixologist will concoct alcoholic beverages for SpaceX's launch facility in Boca Chica, a Texas Gulf Coast community about 20 miles east of Brownsville. The job posting indicates the mixologist will work on the culinary team serving the SpaceX workforce.

According to Austin-based job website Indeed, the average mixologist in the U.S. earns $13.53 an hour. The SpaceX job posting doesn't list a salary, but you've got to imagine Musk — by far the richest person in Texas — would fork over more than $13.53 an hour for a spaceport mixologist.

By the way, in case you're not a master mixologist, SpaceX also is looking for a sous chef in Boca Chica. The sous chef will be tasked with cooking up menus that emphasize seasonal items and "creative" options. The chef's duties will include sourcing high-quality ingredients "with a focus on local, sustainable, and organic items."

Musk, who spends much of his time in Austin, is developing what the Bloomberg news service describes as an "empire" in Texas. Aside from the SpaceX facility, Musk-led Tesla is building a vehicle manufacturing plant just east of Austin and is moving its headquarters here. If that weren't enough, the Musk-founded Boring Co., which specializes in developing underground tunnels, lists 20 job openings in Austin on its website. In addition, SpaceX tests rocket engines at a site in McGregor, about 17 miles southwest of Waco.

"Texas has had its share of characters over the years, and many have been larger-than-life, wealthy risk-takers who came from elsewhere," Waco economist Ray Perryman tells Bloomberg. "There's still a wildcatting mentality here, and there's still a mystique about Texas that Elon Musk fits well."

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This article originally ran on CultureMap.

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