23rd July 2018

Bionema backed by private investors

A Swansea biotechnology company has received backing from an overseas private investor and the Development Bank of Wales as it looks to develop organic pesticides.

Bionema, which is based at Swansea University, received £500,000 equity investment from an investor and the development bank with co-investment from Swansea Innovations, Swansea University and existing investors.

Bioinsecticide products kill harmful crop pests in different cropping systems, leaving fruit and vegetables residue free. Market research suggests that the bio-pesticide market could be worth billions by 2022.

Bionema plans to recruit three new staff to further develop and register its bioinsecticide products that will control insect pests of soft fruits, including strawberries.

The company already has a number of products on the market, and hopes to launch its new products by 2021.

Dr Minshad Ali Ansari is founder and MD of Bionema. He said: “We are really pleased that the Development Bank of Wales, Swansea Innovation, and our overseas investor, Mrs Shahnan Chowdhury, recognise our potential and our achievements to date as we capitalise on the industry drive to reduce dependence on chemical pesticides with safe and sustainable solutions. Their funding will enable us to further develop our biopesticide products and take advantage of the growing organic market.”

Dr Ansari also said: “We are also being supported by the Welsh Government’s SMART Cymru programme of £1m, co-financed by the European Regional Development Fund to progress novel ideas through Research Development and Innovation.”

Investor, Shahnan Chowdhury, said: “We love organic food and believe firmly in the potential to combat crop pests with natural products. We are therefore very pleased and excited to support Bionema with its future plans.”

Dr Gerry Ronan, managing director of Swansea Innovations and director of the AgorIP programme, added: “Bionema has developed a natural solution that will combat major crop pests. This is the future of crop protection, as the power of natural microorganisms is slowly coming to reality and filling the gap where chemical pesticide has been banned.”

Phil Barnes, investment executive at Development Bank of Wales, said: “Working with Swansea University and Swansea Innovation, we have developed an investment package for Bionema that will support the research, development, and commercialisation of bio-pesticide products for the horticulture, turf, landscape and forestry sectors. With over 30 years’ experience, we wish Doctor Ansari and his team every success.”

Rachel Hillier of Capital Law advised on the deal. Hillier commented: “We are delighted to have assisted Bionema with this initial investment that will allow the company to meet increasing market demand for green pesticides.”

View Bionema’s profile here.