Atlanta-based agriculture biologicals start-up ProGro Bio is seeking regulatory approval to market its microbial blend for use as crop protection, expanding the addressable market for its products.
ProGro’s Rhizol is a blend of 35 microbes that promotes root growth and improves water retention and nutrient absorption for a range of crops, including berries, corn, potatoes, onions, rice, soybeans, wheat, and other crops, according to field test studies. The crop input was developed based on microbial research from Robert Bruck, who also serves as the company’s chief scientist.
“The number of microbes — while it is differentiating — is not really the primary differentiator. What truly sets Rhizol apart is the meticulous and unique way in which the microbes were selected, the way they were concentrated, and the way that they have been blended to interact in combination to produce all sorts of outcomes that are very impressive,” company CEO Blake Young told AgTechNavigator.
As farmers started using Rhizol, ProGro “started observing some other traits,” including pesticide, fungicide, and nematicide effects, prompting the start-up to explore expanding the use of its products, Barry Roberts, company COO, said.
“We started to see that [farmers who] were using it through their pivots were not having spider mites. We started seeing that tobacco [growers] were not having certain fungal and mold issues that they had had before,” Roberts elaborated.
Biopesticide companies must gain EPA approval through a multi-step process to determine human health and environmental impacts before a company can sell in the US, Roberts explained.
However, the EPA process for approving “microbial blends is somewhat difficult,” Roberts said. ProGro is consulting legal expertise on the best path forward but expects to submit its filing in about six months, he added.
ProGro launches Series A ‘to bring in more sophisticated funding’
A few months ago, ProGro launched its Series A round with the goal of closing the round later this year, Young noted. ProGro closed its seed round in 2022 and received additional investment in 2023.
“We are seeking to bring in more sophisticated funding avenues, whether that might be strategic or institutional investors that have expressed interest,” Young elaborated.
ProGro plans to use the additional funding to accelerate its business development and sales and marketing activities, Young explained.
ProGro built its manufacturing plant and processes to be lean, keeping cost front of mind, Young noted. Increasingly, venture capitalists are prioritizing start-ups that closely monitor their expenses and build a clear pathway to profitability.
ProGro’s facility “is about 3,000 square-feet in size and is capable of producing over 2 million acres of product a year. That is an absolutely dramatic departure from other microbial companies that have the necessity to spend large sums of capital to construct very large manufacturing facilities that are producing liquid products and warehousing,” Young said.
Young added, “When you think about our capital investment, we are going to be a more highly efficient user of capital, which is going to bring our profitability horizon into focus much sooner than probably investors would expect.”
