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$850B market: programmable biology revolution moves to Wall Street

June 8, 2021 BOOK CONSULTATION

Biology is now programmable. This has enormous implications not just for the scientists, but for investors as well. Advances in biotechnology over the next 10 years are estimated to have a direct economic impact of up to $4 trillion per year. And the global biotechnology market is expected to reach the value of over $850B by 2027.

Scientists’ ability to read and write DNA has until now been constrained by their relative ignorance about what genetic data drives which physical outcomes. AI is finally giving them the ability to understand it. The potential for AI to provide insights from large biological data sets is transforming the field of biology. Essentially, AI will help humans make better sense of how biology works.

Combined with synthetic biology techniques, AI will enable the production of exotic materials, from more sustainable and animal-free meat, to cleaner fuels, to synthetic organs. Given these trends, the National Security Commission on Artificial Intelligence identified biotechnology as one of seven emerging technologies that will be critical to future national competitiveness

And now investors are signaling their belief in the field’s massive growth opportunity as well. Ginkgo Bioworks, a Boston-based company that aims to create a platform where cells for all industries could be manufactured, recently landed a blank-check deal that valued the company at $15 billion, more than triple what it was worth last year, and more than 100 times the company’s 2020 revenue.

Synthetic biology companies have enjoyed rapidly falling costs and growing demand from clients in emerging tech fields, which sparked venture capital interest. Ginkgo’s innovations have reduced the cost to produce a cell strain by 50% annually since 2015. At this point, there are relatively few actual products on the market, but experts say the financial rewards will be great in this field very soon.

“We bought Ginkgo Bioworks just a few months ago when its valuation was under $5 billion. We are already seeing 3x minimum return, and we believe this will be a 100-billion-dollar company ,” says Kris Bort, founding partner of Sakal Ventures, a fund that focuses on late-stage private investing. “This is an incredible company that is developing a single method for making just about any product in the world. And this method is faster, cheaper and more sustainable than conventional manufacturing. It sounds like science fiction. But the amazing thing is – it’s not! We are witnessing the dawn of synthetic biology. It is going to transform everything. The innovators working in this sector have to get creative – they have to grow the industry as a whole, not just their businesses. And Ginkgo Bioworks is doing a remarkable job in this area.”

However, the science and technology at the heart of synthetic biology companies are so complex that investors without a specific technical background may face significant challenges.

“To be successful investing in the private space you need top professionals to help you navigate, if you want a long-term winning strategy. Biotech is one of the sectors we focus on at Sakal Ventures as we create avenues into the private market for individual investors,” explains Bort. “Our approach is to buy best-in-breed companies in disruptive sectors. We purchase every security for cash and employ zero leverage.”

Right now, you have a chance to connect with the founder or head of capital development at this venture capital fund. Take this opportunity to talk to some of the brightest minds and best investors in the late-stage private space: visionaries, MIT and NYU Stern School of Business graduates. Book a FREE CONSULTATION with Sakal Ventures.