A year after raising $24.5 million in Series A funding, Elo Life Systems, a North Carolina-based ingredient company, has announced an additional $20.5 million in Series A extension from existing investors. This brings the total venture-backed capital to $45 million. The funding was led by DCVC Bio and Novo Holdings, with participation from Hanwha Next Generation Opportunity Fund, AccelR8, and Alexandria Venture Investments.
Key Takeaway
Elo Life Systems secures $20.5 million in Series A extension funding, bringing the total venture-backed capital to $45 million. The company is focused on launching a natural monk fruit-derived sweetener and developing various plant-based technologies to transform the food supply chain.
Expanding Capabilities and Achieving Milestones
Elo Life Systems CEO Todd Rands expressed the company’s plans for another round of funding late last year or early 2024, indicating the potential for further growth in the Series A2 round. Rands highlighted the value and momentum generated over the past two years, including building a seasoned management team, expanding technical, manufacturing, and commercial capabilities, and achieving product milestones.
Monk Fruit Sweetener and Future Developments
Founded in 2021, Elo Life is focused on developing various technologies, including plant-based sweeteners and crop protection. Its upcoming product, set to launch in 2026, is a natural sweetener derived from monk fruit, touted to be 300 times sweeter than sugar without the calories. Additionally, the company has a partnership with Dole to create a fungal-resistant Cavendish banana. Elo Life is also working on producing proteins, natural preservatives, flavors, and bioactive compounds.
Challenges and Innovation in Food Ingredients
Rands emphasized the use of new technologies such as molecular farming, gene-editing, and precision fermentation to unlock new categories of ingredients and transform the food supply chain. Despite challenges faced by ag/food tech companies, Elo Life aims to reduce the cost and carbon footprint of monk fruit through local production via molecular farming, using plants as “biofactories” to produce the sweetener in easier-to-grow crops.
Future Plans and Deployment of Funding
The new funding will be deployed over the next two years as Elo Life builds its supply chain for its sweetener products. The company also plans to develop technology in partnership with a large non-governmental organization to enhance the productivity and resistance of staple nutrition crops in third-world countries. Rands highlighted the shift towards engaging with growers, processors, ingredient companies, and regulators to prepare for commercialization and secure approvals.
