Trends within our investment scope
While global venture capital markets have cooled significantly, one sector continues to build momentum: biotechnology. The need to make food systems more sustainable is growing fast. With direct links to sustainable agriculture, food security, and scalable innovations, biotech is becoming more relevant within Value Factory’s investment scope and mission.
But what do we mean by biotech?
At Value Factory, we define biotechnology as the use of living organisms, such as bacteria, plants, fungi or cells, to create products or improve processes. From upcycling waste streams, development of medicine and improving crop resilience to developing natural materials and ingredients, biotechnology is a powerful drive of sustainable innovation
Biotech is driving smarter, more sustainable solutions
From agriculture to materials and food systems, biotechnology offers powerful tools to tackle growing challenges. In farming, it enables the development of resilient crops that require fewer resources and supports the rise of natural alternatives to fertilizers and pesticides—restoring soil health and reducing environmental impact.
At the same time, biotech is reshaping how we extract, produce and upcycle. From unlocking high-value plant-based ingredients to turning organic waste into new materials, it opens the door to more circular, efficient and scalable solutions that reduce dependence on fossil-based inputs and minimize waste.
Biotech within our portfolio
At Value Factory, we are already supporting companies that embody these trends. This is where biotech, food, farming, and biobased innovation come together and where we see long-term opportunity.
- FC-I develops 100% biobased insulation using mycelium, the root structure of fungi. By combining agricultural waste and fungal growth, they create fully circular isolation and building materials.
- Cano-ela applies patented extraction techniques to transform 100% of the canola seed into high-value, plantbased protein ingredients, with zero waste.
These innovations show the potential of biotech applications.
Positive outlook for growth and returns
Investor interest in biotechnology remains high, and the sector continues to attract funding, despite the broader market slowdown. According to PitchBook, the agriculture biotech segment alone is expected to grow by nearly 9% annually over the next decade (see the graph below). As more companies scale and show real-world impact, the conditions for successful exits are improving.
Why this matters to Value Factory
The world needs better ways to use natural resources and reduce our climate impact. Biotechnology offers solutions for climate and food security challenges with a combination of innovation, market relevance and long-term impact. We see biotechnology as a key driver of the transition to a more sustainable economy. That’s why it’s not just part of our focus, but an important pillar of our investment strategy.
