Demetrix Secures $50 Million Series A Funding Led by Tuatara Capital, Backed Again by Li Ka-shing's Horizons Ventures

On July 11, 2019, VCBeat (WeChat ID: vcbeat) learned that Demetrix, a biotechnology company focused on the production of cannabinoids, announced the completion of a $50 million Series A financing round. The round was led by Tuatara Capital, with participation from existing investor Horizons Ventures. Previously, Horizons Ventures had led Demetrix’s $11 million seed financing round. Jeff Ubersax serves as CEO of Demetrix.

Demetrix, founded in 2015 and headquartered in Emeryville, California, leverages industry-leading fermentation technology to accelerate cannabinoid production. Its yield is several orders of magnitude higher than that of the technology reported in the February 27, 2019 issue of Nature.

Driven by consumer demand, medical potential, and pharmacological efficacy, the cannabis industry is becoming one of the fastest-growing industries in history. Legislative changes have reached critical mass globally: 33 U.S. states have approved cannabis-related medical programs, 10 U.S. states and the Canadian federal government are legalizing adult-use cannabis, and over 32 countries have approved medical cannabis programs. By 2029, the global market size for cannabinoids is projected to reach $100 billion.

Over the past decade, the global cannabinoid market supply chain has relied heavily on traditional plant cultivation and extraction operations to produce high-purity tetrahydrocannabinol (THC) and cannabidiol (CBD). However, most cannabinoids occur at very low concentrations in plants and cannot be economically produced through plant extraction.

Demetrix is addressing this challenge by leveraging baker’s yeast to enable the continuous, high-efficiency production of cannabinoids with high quality, high purity, and low cost. The company intends to use its Series A financing to scale up operations and commercialize more than 100 different cannabinoids.

“Demetrix’s mission is to help people access the rarest ingredients from nature. We are thrilled to partner with world-class investors such as Tuatara Capital and Horizons Ventures to enable global pharmaceutical, supplement, and consumer goods companies to deliver innovative cannabinoid products,” said Jeff Ubersax, CEO of Demetrix. “We have assembled a team of industry veterans, built a scalable technology platform, and collaborated with regulatory authorities worldwide to rapidly commercialize cannabinoid products.”

“Tuatara Capital partners with industry-leading companies that are shaping the future of the cannabis industry. We are delighted to lead the investment in Demetrix, whose team has a strong track record in the large-scale commercialization of cannabinoids and possesses extensive expertise in both bioengineering and cannabinoid research and development. The continuous production of high-purity, single cannabinoids at scale represents a critical direction for the growth of this emerging industry,” said Marc Riiska, Partner at Tuatara Capital.

Tuatara Capital, established in 2014 and headquartered in New York, USA, is an investment management firm. Tuatara is dedicated to investing in the legal cannabis industry and currently manages over $330 million in cannabis-related assets. Adhering to a partnership-centric investment philosophy, Tuatara collaborates with management teams to provide strategic, financial, and operational support to its portfolio companies.

Horizons Ventures, established in 1999 and headquartered in Hong Kong, China, is the private investment firm of Mr. Li Ka-shing. Horizons Ventures focuses on providing capital to innovative and technology-driven startups. Its portfolio companies include Facebook, Spotify, Siri, Zoom, Impossible Foods, and Perfect Day.

(Compiled by Cheng Tao)