Bionema Ltd has announced the completion of a £180,000 equity investment, led by private investors with co-investment from the Development Bank of Wales.

Bionema specialises in the development and sales of biopesticides in the agri-food sector. It is based at Swansea University, who report the investment will be used to develop innovative biopesticides that will significantly reduce the need for chemical pesticides in crop pest control.

It’s estimated crop pests cause more than £50bn in damage worldwide annually. Bioinsecticide products kill harmful crop pests in an environmentally friendly way, leaving fruit and vegetables chemical residue free. It’s forecast that the worldwide biopesticide market will be worth more than $6.4bn by 2023.

This additional investment accelerates ongoing product development and regulatory registration. Bionema already has a number of products in the market and intends to launch its new bioinsecticide products by 2021.

Dr Minshad Ansari, Founder and CEO of Bionema, said “We are really pleased that the Development Bank for Wales, private investors, and our overseas exsiting investor 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. This additional investment will accelerate ongoing product development and take advantage of the growing biopesticide market.”

Richard Salvage, a biotech entrepreneur with established companies in related fields, was one of the investors in this round. He said “We believe firmly in the potential to combat crop pests with natural products. We are therefore very pleased to be investing in Bionema with their future technology development.”

Karl Wills, Managing Partner at KMCE, and a serial entrepreneur, was also an investor in this round. He said “Bionema has developed a natural solution that will combat major crop pests. This is the future of crop protection industry, as the power of natural micro-organisms is slowly coming to reality and filling the gap where chemical pesticide has been banned.”

Dr Phil Barnes, Investment Executive at Development Bank Wales, said “The investment would allow Bionema to develop their products and take advantage of the growing demands of organic food. We have developed an investment package for Bionema that will support the research, development, and commercialisation of biopesticide 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, who advised on the deal, said “We are delighted to have assisted Bionema with this initial investment that will allow the company to meet increasing market demand for green pesticides.”