Benson Hill, based in St. Louis, employs CRISPR gene editing and data analytics to accelerate the identification of new seed varieties far more rapidly than conventional plant breeding and discovery techniques. In March 2021, the company introduced two new business segments: Ingredients, which focuses on improving soybeans and yellow peas to create innovative varieties for plant-based food applications, and Fresh, which aims to develop and commercialize differentiated produce and functional foods catering to the growing “food as medicine” trend among consumers.
The merger with a SPAC (Special Purpose Acquisition Company) provides Benson Hill with a significant capital boost to support its growth in the increasingly competitive plant-based foods and functional ingredients sectors. Other startups, such as CoverCress, Yield10 Bioscience, and Elo Life Systems, are also striving to bring products to market in this space. Biotechnology startups typically require substantial funding to invest in their technology, research and development, and talent acquisition. The SPAC deal will enable Benson Hill to further enhance its CropOS genomics discovery platform, as well as expand its marketing and outreach team to connect with potential end-users in the plant-based and functional ingredients sectors.
Additionally, Benson Hill operates a processing facility through its subsidiary, Dakota Ingredients, which may require expansion in the near future. The capital raised may also be used to strengthen partnerships with growers who cultivate its unique seed varieties under specific conditions, aligning with the company’s sustainability objectives.
SPAC transactions have become a favored route for agtech companies looking to enter the public market. For instance, high-tech greenhouse startup AppHarvest merged with SPAC Novus Capital earlier this year, raising $475 million at a valuation exceeding $1 billion, while vertical farming startup AeroFarms is merging with Spring Valley Acquisition, securing $357 million at a valuation of $1.2 billion. These agtech startups share common themes centered around producing food with fewer resources and diminished environmental impact. They also tap into significant consumer trends, such as plant-based eating, locally sourced fresh produce, and healthier ingredients.
The surge in ESG (environmental, social, and governance) investing reflects a growing desire among investors to achieve more with their funds than merely generating profit. Startups like Benson Hill provide investors with an opportunity to meet both investment criteria simultaneously. Moreover, going public allows these startups to benefit from a considerable influx of capital to increase production and enhance marketing efforts. Benson Hill has already attracted investments from major entities like GV (formerly Google Ventures), Wheatsheaf, Bunge, and Dreyfus Company. The presence of influential partners in its investor base offers strategic support and guidance, which are invaluable for startups like Benson Hill that aspire to transform the agricultural landscape.
In this context, products such as calcium citrate soft chews 500 mg may also play a role in the growing market for functional foods, further aligning with consumer interests in health and wellness. As the demand for innovative health-oriented products continues to rise, Benson Hill is well-positioned to capitalize on these trends while driving its mission forward.