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Governor’s Environmental and
Economic Leadership Award
2008
2008 Cleantech Innovator Award
Investors’ Circle Top 20
The Ro...
Global Chemical Pesticide Market
is Challenged
• Government phase-outs
• Pest/weed resistance
• Export residue restriction...
Supermarkets & Legislation in EU
EU legislation 91/414 phases out hundreds of chemical
pesticides; Supermarkets don’t want...
0
20
40
60
80
100
120
140
1995 1997 1999 2001 2003 2005 2007
Launches New Leads
Cost to Discover
& Develop a
Synthetic
Che...
Biopesticide Growth
Far Exceeds Chemicals
Biopesticide Advantages
• No chemical residues -
good for export
• Manage pest r...
What are Biopesticides?
• Microbials (e.g., bacteria, fungus)
• Biochemicals (e.g. plant extracts (some),
pheromones, fatt...
Agrichemical Company Landscape
• $3-8 billion; GM crops and synthetic chemicals
• Monsanto, DuPont, Dow, Syngenta, Bayer, ...
Many Large Problems to Solve
2.5 4.1 6.1 8.1 9.2
1950 1975 2000 2025 2050
World population growth (billion) (UN)
Plant par...
What We Do
We discover, develop, and market effective and
environmentally responsible natural products (biopesticides)
tha...
Company Overview
• Founded April 2006 by industry expert, serial entrepreneur
Pam Marrone in Davis, California
• 54 employ...
Product Pipeline
Strategy: develop multiple
products in parallel to create
substantial revenues after 2011Market
Entry
Dat...
Product
Development
Discovery
 Collect samples (soil, insects,
flowers) from unique habitats &
geographies
 Isolate, fer...
Water movement
in plant
SYSTEMIC HERBICIDE
(e.g. glyphosate=Roundup®)
MOVEMENT IN PLANTS
MBI 010 - Our “Organic Roundup®”
...
Market entry, early 2011 upon EPA approval
Mussels = $ billions in economic & environmental damage
Mussels
clog pipes
in p...
Ag Company Risk Factors
Risk Factor MBI Actions to Mitigate Risks
Weather
Stepwise customer adoption
curve
∙Geographic div...
Matching Entrepreneurs and
Investors
Board of Directors & Investors
• Rich Rominger. (Chair). Yolo County farmer and ag icon.
Former USDA Deputy Secretary and ...
Investor Considerations
• Investor knowledge of food and ag is limited
• Ag tech companies do not usually fit traditional ...
Pam Marrone, Founder/CEO
pmarrone@marronebio.com
1-530-902-1014 (cell)
1-530-750-2800 (office)
www.marronebioinnovations.c...
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SOCAP10: Pam Marrone, Marrone Bio Innovations

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SOCAP10: Pam Marrone, Marrone Bio Innovations

  1. 1. Governor’s Environmental and Economic Leadership Award 2008 2008 Cleantech Innovator Award Investors’ Circle Top 20 The Role of Biopesticides in Sustainable Food Systems – Investor Considerations
  2. 2. Global Chemical Pesticide Market is Challenged • Government phase-outs • Pest/weed resistance • Export residue restrictions • Public concern • Lack of new products 24% 48% 28% Fungicides Insecticides Herbicides Market growth inline with inflation Fungicides Insecticides Herbicides 0 5 10 15 20 25 30 35 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $Billion 27% 24%19% 30% N. America Europe Asia Pacific South & Central Am
  3. 3. Supermarkets & Legislation in EU EU legislation 91/414 phases out hundreds of chemical pesticides; Supermarkets don’t want residues
  4. 4. 0 20 40 60 80 100 120 140 1995 1997 1999 2001 2003 2005 2007 Launches New Leads Cost to Discover & Develop a Synthetic Chemical ($Mil) Fewer New Chemicals – Higher Cost 1.2 4.1 20 45 85 105 185 256 1956 1964 1969 1977 1984 1998 2000 2003 2007 2010 0 50 100 150 1990 1995 2000 2009 # of Chemicals Screened to Find One Product (‘000) # of New Chemical Leads vs. Product Launches (Source: CropLife) Source: Ag Chem New Compound Review (Vol 25) 2007
  5. 5. Biopesticide Growth Far Exceeds Chemicals Biopesticide Advantages • No chemical residues - good for export • Manage pest resistance • Spray in AM, return to field in PM • Gentle to environment • Can be used in organic • $3-5 mil & 3 yrs to market 0 500 1000 1500 2000 2500 3000 3500 2003 2005 2009 2014 $Millions Biopesticide Growth Outpaces Chemical Growth (15.6% vs. 1.3% CAGR) Most biopesticides are used in conventional farming as part of pest/plant disease management programs (source: BCC Research)
  6. 6. What are Biopesticides? • Microbials (e.g., bacteria, fungus) • Biochemicals (e.g. plant extracts (some), pheromones, fatty acids) - nontoxic mode of action Insect Pheromone Soaps/fatty acids Fungi & Bacteria Plant extract
  7. 7. Agrichemical Company Landscape • $3-8 billion; GM crops and synthetic chemicals • Monsanto, DuPont, Dow, Syngenta, Bayer, BASF • Focus - Large row crops; No biopesticide R&D • Biopesticide acquisitions and leveraging global sales force to sell others’ biopesticides The Big Six • $100 million-$2 billion; No Biopesticide R&D • Arysta, Makhteshim, Nufarm, UPI, Valent/Sumitomo, Advan/Sipcam, Gowan, Cheminova • Leverage sales force to sell others’ biopesticides Generic Suppliers • 0-$180 million; Microbials, pheromones, plant oils • Valent Bio, Becker Underwood, Certis, Arysta, Shin-etsu, Novozymes, Suterra, AgraQuest, Plant Health Care, Bioworks, Prophyta, MBI, Pasteuria, Exosect, EcoSmart • Some discovery/screening; Most in-license Biopesticides
  8. 8. Many Large Problems to Solve 2.5 4.1 6.1 8.1 9.2 1950 1975 2000 2025 2050 World population growth (billion) (UN) Plant parasitic nematodes ($80 bil) Algae ($10+ bil) Sucking insects ($5 bil) Weeds ($40+ bil) Post harvest losses ($300 bil) Stress & Fertilizer Efficiency ($500+ bil)
  9. 9. What We Do We discover, develop, and market effective and environmentally responsible natural products (biopesticides) that fill unmet needs for weed, pest & plant disease management. • Products that improve yields and quality in conventional ag compared to chemical-only systems • Products that lower the cost and increase yields in organic farming • Products for water treatment and water bodies
  10. 10. Company Overview • Founded April 2006 by industry expert, serial entrepreneur Pam Marrone in Davis, California • 54 employees; 12 PhD, 7 MS, 4 MBA, 30 BS, 1 AS • Selling GreenMatch® Bioherbicide and Regalia® Biofungicide • Products in advanced development:  Zequanox™ Invasive mussel product - launch early 2011  Two bioinsecticide and two bioherbicides waiting EPA approval • 6 U.S., 9 international patents filed • $23.5 million of invested equity capital, including $8.5 million in current C round
  11. 11. Product Pipeline Strategy: develop multiple products in parallel to create substantial revenues after 2011Market Entry Date MBI 501 Anti-transpirant MBI 203 Insecticide MBI 206 Insecticide MBI 010 Herbicide MBI 302 Nematicide MBI 005 Herbicide
  12. 12. Product Development Discovery  Collect samples (soil, insects, flowers) from unique habitats & geographies  Isolate, ferment, test bacteria & fungi  Characterize microbes & pesticidal compounds  Process development  Toxicology/Regulatory  Formulation  Field trials  Scale-up  QC & Manufacturing How to Find Safe, Effective Natural Products
  13. 13. Water movement in plant SYSTEMIC HERBICIDE (e.g. glyphosate=Roundup®) MOVEMENT IN PLANTS MBI 010 - Our “Organic Roundup®” Long term control of weeds – roots are killed after spraying the leaves • New species of bacteria discovered from our screen • Two novel systemic compounds produced by the bacteria • Broad spectrum weed control • Not the same mode of action as glyphosate (=Roundup) • Market entry late 2012
  14. 14. Market entry, early 2011 upon EPA approval Mussels = $ billions in economic & environmental damage Mussels clog pipes in plants Ruptured mussel gut cells Pseudomonas fluorescens (dead or alive) bacteria kill mussels when they feed Discovered by NYSM; patented – MBI is exclusive partner Zebra Quagga
  15. 15. Ag Company Risk Factors Risk Factor MBI Actions to Mitigate Risks Weather Stepwise customer adoption curve ∙Geographic diversity ∙Water (Zequanox) + Ag ∙ Diverse ag product portfolio (insecticides, fungicides, herbicides, nematicides, plant health) Commodity prices Products in multiple crops and regions Cost of development in row crops (corn, soybean, cotton) Partner with large company EPA approval timeline delays Communication, relationships, lobbying, Biopesticide Alliance Microbial scale up speed (pace to reach target COGs) ∙Additional people and equipment ∙ Own/control fermentation manufacturing
  16. 16. Matching Entrepreneurs and Investors
  17. 17. Board of Directors & Investors • Rich Rominger. (Chair). Yolo County farmer and ag icon. Former USDA Deputy Secretary and CA Agriculture Secretary; BOD American Farmland Trust • Larry Hough. Founder, Stuart Mill Ventures. Former CEO Sallie Mae • Ranjeet Bhatia. Co-founder, Saffron Hill Ventures • Tim Fogerty. CFO, CGI Opportunity Fund • Joe Hudson. Co-founder, One Earth Capital • Sean Schickedanz. General Partner, Clean Pacific Ventures • Jim Wissmiller. VP Tenkoz. VP Sales/Marketing at agrichem cos. Most recently Zeneca and Syngenta • Pam Marrone. CEO/Founder
  18. 18. Investor Considerations • Investor knowledge of food and ag is limited • Ag tech companies do not usually fit traditional Silicon Valley style VC model (exception: software) • Not an iPod or semiconductor! • For contrarian investors who develop expertise in ag, the field is wide open with promising companies to fund • More Investors needed for companies between late development and growth stage • Innovation in ag is badly needed to solve the world’s need for sustainable food production • There are not enough startups! Investors could develop relationships with land grant universities to help create companies from spinout technologies
  19. 19. Pam Marrone, Founder/CEO pmarrone@marronebio.com 1-530-902-1014 (cell) 1-530-750-2800 (office) www.marronebioinnovations.com  2010 Marrone Bio Innovations, Inc.

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