funding, Industrial Biotechnology, VC

Verdezyne Raises $3M in Venture Funding to Advance Industrial Biotechnology

Bruce V. Bigelow 10/30/09

Carlsbad CA-based Verdezyne, which just disclosed a $1.7 million government grant, has raised nearly $3 million of a planned $15.2 million round of venture capital, according to a regulatory filing yesterday.

The company, which was previously known as CODA Genomics, is developing genetic engineering techniques and processes for producing industrial chemicals and fuels from microbes. When Verdezyne announced two weeks ago it had received the $1.7 million Small Business Technology Transfer grant, the company said the funds would be used to develop gene libraries for its computational and bioinformatics programs.

Details about Verdezyne’s latest venture round are not available, as CEO William Radany is out of the country. In an interview four months ago, Verezyne’s vice president of business development, Damien Perriman, said the company is directing its activities at both improved ethanol fermentation and new ways of producing chemicals. Perriman said the company’s technology could help ethanol producers now sitting idle by improving yields, reducing carbon dioxide emissions, and speeding up the ethanol fermentation process.

Verdezyne’s existing investors include Monitor Ventures, which has offices in Los Angeles and Palo Alto, CA, Seattle-based OVP Venture Partners, Southern California’s Tech Coast Angels, and the Life Science Angels. While the company does not list San Diego’s Enterprise Partners Venture Capital as an investor, managing director Drew Senyei sits on the company’s board of directors.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call 858-202-0492