LanzaTech raises $US55m as Malaysian oil money flows in
New Zealand clean technology company LanzaTech says it has has closed its Series C round with new investment totaling $US55.8 million led by the Malaysian Life Sciences Capital Fund.
New investors include Petronas Technology Ventures, the investment arm of Malaysia's state-owned oil company, and Dialog Group, a Malaysian integrated specialist technical services provider to the oil, gas and petrochemical industry. Existing investors Khosla Ventures, Qiming Venture Partners and NBR Rich Lister Sir Stephen Tindall's K1W1 also participated in the round.
To date, the company has raised more than $US85 million, it said in a statement this morning.
Dr. Jennifer Holmgren, the US-based chief executive of LanzaTech, said this funding will accelerate the development of next generation integrated biorefineries using the LanzaTech technology platform for the production of sustainable low carbon chemicals as well as fuels.
LanzaTech uses a proprietary fermentation process to convert gases (including industrial waste gases and gas derived from any biomass source) into fuels and chemicals.
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Comments and questions8
A true kiwi success story - well done to them. Unfortunately it will never end up on the NZX.
To be clear, the company was started here, but is now a US registered company. there is no way they would raise this kind of $$ without an American CEO and a US based business. This is another case of Kiwi idea that could never make it until it left NZ.
This is NOT a Kiwi success story as the success came only after the company left to go to the US and hired a US CEO. No investment firm would give a Kiwi company that kind of money.
So to be clear it was initially developed here, but the success was driven by better minds and business acumen from overseas.
Nothing wrong with good ideas coming out of NZ, and then, making it BIG with overseas expertise.
Look at Diligent - a truly success story but not at the time of the IPO. All that the media and NZ investors could do was bring up the past history of one of the founders. Result? NZers sold out and Americans bought in.
NZ needs to up it's game(visibility, credibility) as a 'tech centre'. What it also lacks is a pool of tech sensitive CEO's.. not more techies BUT business/sales/marketing depth at CEO level. Key shoud be focusing on a strategy here vs the status quo.. a bureaucratic NZTE.
We can only hope some of the kiwisaver providers start exploring these new ventures for the appropriate risk profile clients.
My concern with this however is how qualified are these fund managers? With time, the quality can only improve. One hopes there will be NZ owned provides around for experienced ex pat fund managers when the decide to come home.
From a technology point of view, it is a New Zealand success story. The IP was and still is developed in NZ and the first small trail facility was I believe in NZ, though they are building another one in China with Chinese money.
Unfortunately we do not have the money of the leadership experience to make a a fully homegrown success story, but I dont think you can completely disregard its NZ roots. NZ shareholders including the founders and K1W1 (ie Stephen Tindall) will get rich out of this if it becomes a commercial success.
Heritage is correct in that the founders of LanzaTech always knew that one of the steps on the route to success was offshore investment and the expertise and added value that USA VC's and offshore strategic investors can bring. Despite dilution, a small slice of a very big cake is still very nice. NZ VC's bring zero added value from NZ, dilute too aggressively but can sometimes link in to their offshore contacts for added value. Fortunately LT had experienced guidance from the start and with bravado and some luck are now getting close to maturity. The low capital business model is excellent and deserves every success. Well done the LT team.
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