DSM Venturing, the corporate venturing unit of Royal DSM N.V., today announced that it has made an investment in Novomer Inc. The companies also plan to sign a cooperation agreement. Financial details of the investment will not be disclosed.
Novomer is developing a technology platform to use carbon dioxide and other renewable materials to produce performance polymers, plastics and other chemicals. The company's products combine environmental benefits with improved materials performance and can be used in a range of applications, from injection molded parts for electronics to paper coatings and medical implants.
DSM Venturing joins Flagship Ventures and Physic Ventures in this financing round. In addition to the investment DSM and Novomer also intend to sign a cooperation agreement. Both the investment and cooperation agreement will support DSM's ambitions to develop bio-based performance polymers to meet customers' growing needs for improved materials performance and environmental benefits at competitive costs.
Furthermore, the cooperation is in line in with DSM's increased focus on exploiting synergy between its Life Sciences and Material Sciences activities. The investment in Novomer is the 8th in 2007 for DSM Venturing. In the recent review of Vision 2010, DSM announced that the budget for venturing has been increased to up to EUR 200 million over the period until 2012.
Novomer's catalyst technology enables the production of polymeric materials from renewable feedstocks with decreased reliance on fossil fuels. Their use of feedstocks such as carbon dioxide and carbon monoxide combined with the precision and reliability of synthetic manufacturing processes, is expected to enable the cost-effective manufacture of bio-based building blocks, polymers, compounds and formulations.
Babette Pettersen, Vice President New Business Development for DSM's Performance Materials cluster: "Novomer's synthetic catalyst chemistry approach to manufacturing offers great promise for DSM to build on our strengths in both Material Sciences and Life Sciences to accelerate the development of customized, cost-effective bio-based performance materials. The cooperation with Novomer offers DSM a valuable partnership for further developments in the field, which will be broadly applicable to both existing and potential new DSM businesses."
"Our relationship with DSM Venturing represents an important validation of Novomer's technology. DSM gives us a major partner in the chemical industry with critical expertise in high-volume production and access to global markets," said Charles Hamilton, president of Novomer. "In addition, our organizations share a real commitment to sustainability and innovative technology."
DSM Venturing is an active investor in companies and venture capital funds in DSM's strategic growth fields Nutrition, Pharma and Performance Materials. DSM Venturing's mission is to explore emerging markets and technologies in these strategic growth fields in order to enhance DSM's product portfolio and create value. DSM Venturing also plays an active role in the development of several new DSM business opportunities in the so-called emerging business areas Biomedical, Industrial (White) Biotechnology, Specialty Packaging and Personalized Nutrition. For more information about DSM Venturing see www.dsm venturing.com.
Novomer is a new materials company pioneering a family of low-cost, high-performance, green plastics, polymers and other chemicals. Founded in 2004 by technology commercialization firm KensaGroup, Dr. Geoffrey Coates and Dr. Scott Allen, the company is based on pioneering catalysts developed at Cornell University. Novomer¡¯s groundbreaking technology allows carbon dioxide and other renewable materials to be cost-effectively transformed into polymers, plastics and other chemicals for a wide variety of industrial markets. Novomer, based in Ithaca, New York, has been highlighted by the BBC, CNN, Dow Jones, Forbes, the New York Times and WIRED. For more information, visit www.novomer.com.