Startups in Synthetic Biology: Investments, Acquisitions, and Trends To Watch

STARTUPS IN SYNTHETIC BIOLOGY
Investments, acquisitions, and trends to watch

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ABOUT THE PRESENTER
John Prendergass
Research Analyst, CB Insights
Focuses on digital health, therapeutics, medical devices, & the

media.
Previously attended medical school at Rutgers New Jersey Medical
School and worked in the healthcare investment group of Ben
Franklin Technology Partners. @jprendergass
Graduate of Johns Hopkins University
jprendergass@cbinsights.com
TABLE OF CONTENTS
11 Investment trends and landscape

21 Corporate participation
25 Google investments in syn-bio
31 Spotlight: Rise of synthetic food
40 Exits & final thoughts
WHAT IS SYNTHETIC BIOLOGY
The design and construction of new

biological parts, devices, and systems.
The re-design of existing, natural

biological systems for useful purposes.”
WHAT IS SYNTHETIC BIOLOGY, CTD.
GENETIC CODE DNA PROTEIN APPLICATIONS
MICROBE
CRISPR: HOW DOES IT WORK
1. 2.
3. 4.
Source: Nature News; Carl Zimmer www.cbinsights.com 10

Equity Funding Trends
GLOBAL INVESTMENTS, TOP DEALS
Synthetic biology equity funding:
$4.1 BILLION
across
176 DEALS
since 2012
SYNTHETIC BIOLOGY ANNUAL GLOBAL FINANCING HISTORY FUNDING SKYROCKETS
2012 – 2016 TO OVER $1B IN 2016
Investors have steadily

funneled more capital into
this space, with annual
deals and funding rising
every year since 2012.
We define this category

as private companies
genetically designing new
biological parts, devices,
or systems, or re-
designing existing, natural
systems for useful
purposes.
SYNTHETIC BIOLOGY QUARTERLY FINANCING QUARTERLY DEAL
Q1’12 – Q4’16 FLOW REBOUNDS LATE
IN 2016
After 7 quarters with

double-digit deal flow,
there were 9 synthetic
biology deals in Q3’16,
the worst quarterly deal
count since Q3’14.
However, Q3’16 was a

record quarter for the
industry, with funding
hitting $649M fueled by
the $474M Series F of
Moderna Therapeutics.
SYNTHETIC BIOLOGY: DEAL SHARE BY STAGE EARLY-STAGE DEAL
2012 – 2016 SHARE REMAINS
STRONG
Since 2013, early-stage

deals (seed/angel &
Series A) have
consistently occupied the
lion’s share of all deals to
synthetic biology
startups, peaking at 64%
in 2014 and taking 44%
in 2016.
Late-stage deal share

has fallen every year
since 2013, landing at 8%
last year.
MEGA-ROUNDS PROLIFERATING
2012 – 2017 YTD (3/06/17)
$474M $150M $144M $130M

Series F Series F Series C Series B
$120M
Series B
AUG. 2016 MAY 2014 APR. 2012 OCT. 2016 AUG. 2015
MOST ACTIVE INVESTORS IN SYNTHETIC BIOLOGY DIVERSE INVESTOR
RANKED BY UNIQUE SYN-BIO INVESTMENTS, 2012 – 2017 YTD (3/06/17) LANDSCAPE IN SYN-
BIO
The top two investors,

Indie.Bio and Y
Combinator, were both
accelerators.
Rounding out the top 3

was the real estate
investment trust
Alexandria Real Estate
Equities and hedge fund
Viking Global Investors.
Editas Medicine is the

most co-invested startup
among the top investors.
SYNTHETIC BIOLOGY SMART MONEY VC DEALS SMART MONEY VCS
2012 – 2016 YTD (3/06/17) MAKING FEW SYN-BIO
BETS ... FOR NOW
A variety of top venture

capital firms have begun
investing in synthetic
biology startups, though
carefully.
Khosla Ventures was the

most active with 4,
including Impossible
Foods & Editas Medicine.
Sequoia and Founders
Fund are making bets in
consumer products and
NEA is betting on pharma.
SYNTHETIC BIOLOGY DEALS DISTRIBUTION BY SECTOR MAJORITY OF DEALS
2012 – 2016 YTD (3/06/17) GOING TO
HEALTHCARE
Since 2012, most deals

have gone to startups
working on therapeutic
applications of syn-bio,
often with multiple, early-
stage indications.
Other popular areas

include DNA synthesis
automation services,
industrial chemicals, and
meat & dairy products.
SYNTHETIC BIOLOGY MARKET MAP INCREASINGLY
DIVERSE USES OF SYN-
BIO
Once confined to the lab,

genetic engineering is
now producing consumer
products such as leather
(Modern Meadow) or ties
(Bolt Threads).
A host of startups are

also developing software
or automation techniques
to accelerate the process
of gene discovery and
insertion into new
organisms (Ginkgo, Twist
Bioscience).
CORPORATE PARTICIPATION
INVESTMENTS, ACTIVE CORPORATES
SYNTHETIC BIOLOGY CORPORATE ANNUAL FINANCING CORPORATE
2012 – 2016 INVESTMENT TRENDING
UPWARD
Corporate and CVC

participation in synthetic
biology funding has risen
in parallel to the sector as
a whole with 2015 hitting
a high of 16 deals.
Pharma giants such as

Alexion Pharma,
AstraZeneca, Novartis,
and Celgene have all
made big bets on CRISPR
startups.
CORPORATES INVESTING IN SYNTHETIC BIOLOGY PHARMA AND
2012 – 2017 YTD (2/20/17) AGRICULTURE GIANTS
MOVING IN
Majority of corporates
active in syn-bio are
pharma giants such as
Novartis & Alexion
Pharma.
Agri-businesses such as
Monsanto & Syngenta
have also made
investments in the past 3
years to companies such
as Pivot Bio, Agrivida, and
Agrimetis.
SYNTHETIC BIOLOGY: MOST ACTIVE CORPORATE INVESTORS
2012-2017 YTD (3/15/17) PHARMA,
AGRICULTURE & TECH
CORPORATE SELECT INVESTMENTS
TOP MOST ACTIVE
INVESTORS
Startups in this field are

drawing attention from a
range of venture arms
and corporations across
agriculture (Monsanto,
Syngenta), pharma
(Illumina, Novartis), and
Tech (Google Ventures).
Google carefully stepping into syn-bio
As the price, reliability, and speed of genetic sequencing and engineering continues to drop,
startups are applying this technology to fields never before imagined. Google is seeking to
benefit with recent bets in food tech (Impossible Foods, 2014) and pharma (Editas Medicine,
2015).
GOOGLE: NOTABLE SYN-BIO INVESTMENTS
Impossible Foods is creating synthetic meat Editas Medicine is a discovery-stage

products from plants. The company uses pharmaceutical company with a basis in
heme derived from genetically engineered CRISPR-Cas9 DNA engineering.
yeast to make the burger “bleed.”
Pre-IPO Disclosed Funding: $571.2M
Disclosed funding: $183M
Market Cap (3/20/17): $738.31M
Select Investors: Google Ventures, Bill Gates,
Khosla Ventures, UBS, Horizons Ventures Select Investors: Google Ventures, Khosla
Ventures, bng0, Third Rock Ventures
EDITAS MEDICINE: DRUG PIPELINE
Editas Medicine www.cbinsights.com 27

NOVARTIS: NOTABLE SYN-BIO INVESTMENTS
Caribou is focused on advancing new Intellia Therapeutics develops therapeutics

applications of the CRISPR-Cas gene editing using the CRISPR-Cas9 gene editing system.
system such as in agriculture and therapeutics. Currently has 6 drugs in the pipeline.
Disclosed funding: $41.5M Disclosed funding: $85M
Select Investors: Novartis Venture Funds, 5 Select Investors: Novartis Venture Funds,
Prime Capital, Mission Bay Capital, Maverick OrbiMed Advisors, Atlas Venture, Fidelity
Ventures Investments
INTELLIA THERAPEUTICS: DRUG PIPELINE
CORPORATES SEEK TO
BENEFIT FROM CRISPR
CRAZE
CRISPR-Cas9
Feng Zhang applications are still in
George Church
their infancy, but
corporates have already
Patent Dispute
taken sides. Novartis has
both invested in, and
partnered with, CA-based
Intellia Therapeutics.
Jennifer Doudna
Rachel Haurwitz
While Juno, Monsanto,
GE, and others have
partnered with Editas,
Google remains the only
corporate to have
invested.
SPOTLIGHT:
RISE OF SYNTHETIC FOOD
Synthetic biology
Synthetic biology &

food
SYN-BIO FOOD & BEVERAGE ANNUAL FINANCING SYNTHETIC FOOD BEGINS
2012 – 2016 TO TAKE HOLD
Since 2012, financing to

startups working in food
and beverage production
has risen quickly, with
2015 hitting a high of
$134M and deals
increasing every year.
Deals in 2017 include a

$23.5M Series B to
Agrimetis, $200K seed
round to GEA Enzymes,
and $830K round to
Glycos Biotechnologies.
LARGEST ROUNDS TO SYN-BIO FOOD STARTUPS
2012 – 2016
$108M $33M $30M $23.5M

Series D Series B Series C Series B
$16M
Series A
OCT. 2015 DEC. 2016 FEB. 2016 JAN. 2017 JAN. 2016
Lab-grown food has become
cheaper
safer
tastier
Cost of 1 lab-grown burger:
2013 2016
$330,000 $18,000
Washington Post
MEAT, FISHMEAL, AND
FOOD PRESERVATION
RECEIVE MOST
FUNDING
Syn-bio startups
focusing on synthetically
produced meat
(Impossible Foods),
fishmeal (Calysta), &
food preservation
techniques (Apeel) are
hot commodities.
Impossible Foods is
already at high-end
restaurants Momufuku
(NYC), PUBLIC (NYC),
and Jardiniere (SF).
SYN-BIO FOOD
STARTUPS START TO
SEE MAJOR VC
DOLLARS
VCs such as Andreessen
Horowitz (Apeel), Khosla
Ventures (Impossible),
Upfront Ventures (Apeel),
and Google Ventures
(Impossible) have all
made synthetic biology
bets in the food and drink
market.
Other big investors

include the Bill & Melinda
Gates Foundation (Pivot
Bio) and Cargill Ventures.
(Calysta).
SYNTHETIC BIOLOGY FOOD STARTUPS
SYN-BIO FOOD
COMPANY FOOD PRODUCT STARTUPS TAKING
OVER THE KITCHEN
Startups are initially

targeting dietary staples
such as milk, yogurt,
dairy, and sugar as well
as specialty items like
burgers, wine, and Jell-O.
FUTURE OF SYNTHETIC FOOD
HURDLES OPPORTUNITIES
• Cost of production • cost of sequencing

• Economic impact on agriculture • strain on natural resources
• Regulatory requirements • Positive impact on public health
• Scaling manufacturing processes • Expanded access to food supply
• Public sentiment • Public sentiment
EXITS & ROAD AHEAD
EXIT ACTIVITY, RECENT M&As, AND NEWS
SYNTHETIC BIOLOGY EXIT HISTORY EXIT POTENTIAL STILL
2012 – 2016 IN EARLY STAGES
The limited exit history,

while trending up,
reflects the early stages
of this technology and
the startups behind it.
Commercial applications
are still being worked
out. Pending successful
further development,
acquisitions in CPG,
pharma, and ag tech are
likely.
SYNTHETIC BIOLOGY: TOP EXITS
2012-2017 YTD (3/17/16) FEW UNICORNS AMONG
SYN-BIO TOP EXITS
Rank Company Valuation Quarter Type
Only two of the six IPOs

1 $1.52B Q3'13 IPO since 2012 were valued
over $1B. All three
CRISPR IPOs in 2016
2 $1.42B Q1'15 IPO remain valued under $1B.
Nearly all top exits were

3 $617M Q2'16 IPO to companies developing
pharmaceuticals, with
the exception of Intrexon
4 $571.2M Q2'16 IPO which is working in
multiple markets.
5 $556.5M Q4'16 IPO
SYNTHETIC BIOLOGY: RECENT M&A DEALS
DEAL COMPANY DATE ACQUIRER DEAL COMPANY DATE ACQUIRER
1 Syngip Feb. 2017 Global Bioenergies 6 OPX Biotech Apr. 2015 Cargill
2 Gen9 Jan. 2017 Ginkgo Bioworks 7 Okanagen Specialty Fruits Apr. 2015 Intrexon
Pilus Energy
3 Jan. 2017 Open Therapeutics 8 Mascoma Nov. 2014 Lallemand
(corp maj.)
4 Genome Compiler Apr. 2016 Twist Bioscience 9 Pilus Energy Jan. 2014 Tauriga Sciences
Renewable Energy
5 Oxitec Aug. 2015 Intrexon 10 LS9 Jan. 2014
Group
Genetic testing has become
cheaper
more accurate
and can be done faster
Cost per genome:
2001 2008 2015
$100,000,000 $500,000 $1,000
National Human Genome Research Institute

WE HAVE ETHICAL QUESTIONS TO CONFRONT
Many technologies have both good and bad
aspects that they can be used for…I can think of
more scary technologies that we're using today -
CRISPR being one in biology - which has equally
scary potential. So while we don't want to risk
large catastrophic possibilities, I personally
believe technical progress should not be stopped for
fear of a downside outcome. Many of these high-
leverage technologies need careful
consideration, discussion, and protocols.
Vinod Khosla
Founder, Khosla Ventures
https://www.quora.com/Is-A-I-an-existential-threat-to-humanity www.cbinsights.com 45
LOOKING AHEAD: THE CONSCIOUS EVOLUTION
SCIENTISTS GET CLOSER TO SYNTHETIC

BIOLOGY BREAKTHROUGH BY CREATING
FULLY SYNTHETIC GENOME
March 9, 2017
CBINSIGHTS.COM
@ cbinsights
+1(212)292-3148

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STARTUPS IN SYNTHETIC BIOLOGY

Investments, acquisitions, and trends to watch

“With CB Insights we can quickly and reliably

See what other customers have to say at http://www.cbinsights.com/customer-love www.cbinsights.com 5

Focuses on digital health, therapeutics, medical devices, & the

Graduate of Johns Hopkins University

11 Investment trends and landscape

The design and construction of new

The re-design of existing, natural

Source: Nature News; Carl Zimmer www.cbinsights.com 10

Investors have steadily

We define this category

After 7 quarters with

However, Q3’16 was a

Since 2013, early-stage

Late-stage deal share

$474M $150M $144M $130M

The top two investors,

Rounding out the top 3

Editas Medicine is the

A variety of top venture

Khosla Ventures was the

Since 2012, most deals

Other popular areas

Once confined to the lab,

A host of startups are

Corporate and CVC

Pharma giants such as

Startups in this field are

Impossible Foods is creating synthetic meat Editas Medicine is a discovery-stage

Editas Medicine www.cbinsights.com 27

Caribou is focused on advancing new Intellia Therapeutics develops therapeutics

Disclosed funding: $41.5M Disclosed funding: $85M

Synthetic biology &

Since 2012, financing to

Deals in 2017 include a

$108M $33M $30M $23.5M

Other big investors

Startups are initially

• Cost of production • cost of sequencing

The limited exit history,

Only two of the six IPOs

Nearly all top exits were

5 $556.5M Q4'16 IPO

DEAL COMPANY DATE ACQUIRER DEAL COMPANY DATE ACQUIRER

2001 2008 2015

$100,000,000 $500,000 $1,000

National Human Genome Research Institute

SCIENTISTS GET CLOSER TO SYNTHETIC

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