US venture capital group backs Daresbury eco-manufacturer with $7m investment

Richard Lock, Holiferm’s managing director, said the company was “trying to redefine what chemical manufacturing means”

A biotech firm based at Sci-Tech Daresbury is looking to expand after landing a deal for about £5.1m of investment from the US.

Holiferm creates environmentally friendly “biosurfactants”, an alternative to controversial petrochemicals and tropical oil-based products in detergents and toiletries.

The funding, $7m in US currency, is expected to be used to fund the construction of an eco-friendly production plant at Wallasey on the Wirral with 30 jobs expected to be created and an annual production capacity of 1,100 tonnes of biosurfactants.

When Holiferm, which began as a spin-off project of The University of Manchester, launched its pilot plant at Sci-Tech Daresbury at the start of the year, its headcount was seven, but that has now expanded to 16.

The latest investment round was led by US venture capital firm Rhapsody Ventures.

A Sci-Tech Daresbury spokesman said the funding shows a confidence in Holiferm and represents an entry into American chemical markets.

The firm is also expecting to release two new products soon.

Richard Lock, Holiferm managing director, said: “We’re trying to redefine what chemical manufacturing means.

“There’s a great misconception that it has to entail huge power stations and industrial plants, but we use a process that is completely green.

“We are working with a molecule that has been designed not by humans, but by nature.

“This fundraising round is another landmark moment in our quest to bring biosurfactants to the mass market.

“Rhapsody Venture Partners have so much experience and they match our drive and commitment in this endeavour, so we are excited to be working with them.”

Steve Rotheram, Liverpool City Region metro mayor, said: “When I launched my £75m Business Growth Package in 2019, it was to try and attract innovative and expanding new businesses like Holiferm to our city region.

“I didn’t want us to rest on our laurels – at the time we were the fastest growing region in the country – but to keep pushing to do better.

“We continued that support throughout the pandemic.

“I am proud that local leaders and I did all that we could to protect jobs and businesses, while trying to create new ones and attract fresh investment.

“As we can see with Holiferm’s expansion within our region, it is an approach that has really borne fruit.

“And of course, tackling climate change is a major priority for us – something we’ll be showcasing at COP26 in Glasgow.

“We want our local economy to be built on fantastic, innovative businesses that invest in local people and help us to reach our ambitious net zero targets.”

Jason Whaley, general partner at Rhapsody Venture Partners, said: “Holiferm’s technology allows, for the first time, the production of clean and natural cleaning ingredients at a scale that makes them widely available to all consumers.

“At Rhapsody, we are excited by this potential and grateful for the opportunity to support the scale-up and manufacture of these products and to advance the biochemical industry generally.”

Peter van Gelderen, general partner at co-investor Icos Capital, said: “We are very pleased with the fast progress that Holiferm has made, from breakthrough technology company in 2019, to a biosurfactant production company in 2021.

“They are already selling product and now ready to scale up and sell to chemical and FMGC companies worldwide that are committed to reducing carbon footprint and switching to bio-based ingredients for a wide range of applications.”

John Downes, chief executive officer of Langtree and chairman of Sci-Tech Daresbury, said: “We were very proud to welcome Holiferm earlier this year to our growing group of materials companies on campus, and this recent fundraising round is testament to the groundbreaking work it is undertaking.

“The connections it has been able to capitalise on are a result of our world class science facilities and collaborative culture have been crucial to this latest milestone in its development, and we look forward to supporting Richard and his team on the next step of Holiferm’s journey.”

Holiferm’s presence at Sci-Tech Daresbury, which is based near Runcorn, Cheshire, was supported by a £400,000 grant from the Inward Investment Facilitation Fund (I2F2) set up as part of the £75m Business Growth Package introduced by Mr Rotheram.