Issue #37: Innovate, Diagnose, Capture

BaCta: Reinventing Rubber from the Ground Up

In the bustling innovation hub of Paris, a startup is quietly revolutionizing one of the world's most ubiquitous materials. baCta, armed with €3.3 million in fresh funding, is using genetic engineering to produce natural rubber in vitro, potentially transforming a multi-billion dollar industry.

Key Points:

• Raised €3.3 million in pre-seed funding led by OVNI Capital

• Uses engineered E. coli bacteria to produce natural rubber in the lab

• Claims its method is carbon neutral, using renewable feedstocks like glucose

• Aiming to scale from milligrams to industrial quantities

• Plans to target luxury fashion brands initially before expanding to industrial applications

baCta's approach is refreshingly innovative: use synthetic biology to recreate a complex natural polymer that's notoriously difficult to synthesize. It's like brewing beer, but instead of alcohol, you're fermenting rubber.

"We're testing acetate [as a feedstock] and also trying to fix carbon directly inside the cell to increase yield, decrease cost and carbon impact," says Mathieu Nohet, baCta's CEO and founder. "We could actually remove hundreds of millions of tons of CO2 from the atmosphere if we [are] successful."

The startup's potential impact is enormous. By offering a sustainable alternative to both petroleum-based synthetic rubber and deforestation-linked natural rubber, baCta could help manufacturers significantly reduce their carbon footprints. Plus, their ability to remove allergy-triggering proteins opens up new possibilities for hypoallergenic rubber products.

But baCta's ambitions don't stop at rubber. The company sees its technology as a platform for producing other valuable chemical compounds, potentially revolutionizing industrial and pharmaceutical production.

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Vocabulary

💡Each edition we’ll bring you a new “Startup word” to help bolster your vocabulary and understanding of the subject!

Mixotrophic: adjective /ˌmiksəˈtrōfik/

Definition: Capable of using multiple sources of energy or carbon for growth.

Why It Matters: In the biotech and synthetic biology space, mixotrophic approaches can lead to more efficient and flexible production processes. This can translate to lower costs, higher yields, and potentially more sustainable operations.

In Action: BaCta is exploring a mixotrophic approach by diversifying its feedstock options beyond glucose to include acetate and direct carbon fixation. This strategy could improve the efficiency and sustainability of their rubber production process, potentially giving them a competitive edge in the market.

Startup Shutdown Of The Day :(

Eaze: When the Cannabis Delivery Bubble Bursts

California's largest cannabis delivery service, Eaze, is facing foreclosure after defaulting on a major loan, marking a dramatic fall for a company once valued at over $700 million.

Key Points:

• Founded in 2014, Eaze was once the largest pot delivery company in the U.S.

• Defaulted on a $36.9 million loan issued by tech investor Jim Clark

• Clark is now foreclosing on the company and demanding all collateral

• Part of a broader struggle in California's cannabis economy

Eaze's financial troubles highlight the challenges facing the cannabis industry, particularly in California. Despite initial hype and high valuations, many cannabis companies are struggling to achieve profitability in a heavily regulated and competitive market.

The startup's journey serves as a cautionary tale about the risks of rapid expansion in emerging markets, especially those with complex regulatory landscapes. It underscores the importance of sustainable growth strategies and robust financial planning, even for well-funded startups in high-growth sectors.

As we reflect on Eaze's struggles, it's worth considering: How can cannabis startups navigate the complex regulatory environment while building sustainable business models? Is there a way to balance rapid growth with financial stability in an industry still grappling with legal and operational challenges?

The fallout from Eaze's financial troubles, including potential impacts on its 600+ drivers and the broader cannabis supply chain, serves as a stark reminder of the ripple effects when high-profile startups falter. It raises important questions about the long-term viability of current cannabis business models and the need for more stable approaches to growth in this evolving industry.