April 20, 2016

Israeli seed breeding startup, EQUInom, which focused on computational seed breeding technologies, hasclosed on an early-stage funding round of $1.25 million led by Hazera Ltd, a seed a field crops specialist.

EQUInom’s specialized breeding process involves the integration of DNA sequencing data and phenotype data with algorithms developed by the company that are designed to identify the parts of the seed’s DNA with particular breeding value. This process forms the foundation of a breeding process that allows the company to breed non-GMO seeds with a higher level of precision and speed than through traditional methods.

“EQUInom’s proprietary developments make it possible to improve the probability of success of challenging plant breeding programs 10-fold, without changing the budget and while halving the program’s schedule compared with regular methods. Our algorithms enable us to identify and select genes with the objective of breeding varieties with maximum market value,” said EQUInom CEO, Dr. Gil Shalev, reports Seed Today.

Using its proprietary methods, the company has already bred quinoa and sesame varieties with improved nutritional profiles that have a lower cost of production, according to Bakery and Snacks, and is working toward breeding seeds for the eventual production of plant protein-based products that could be “improved and cheaper alternatives” to soy-based products.

Founded in 2012, EQUInom’s technology enables the custom breeding of specialized crops for the production of specific foods, and its initial products including a pepper variety developed for the Arava market in Israel, are currently in their pre-commercial phases and are expected to launch on the market within the next two years.

“EQUInom envisions a new supply chain model for the global food industry. Food companies may imagine and specify new, healthier and more profitable varieties of plant-based nutrition, that have previously not existed,” says Shalev according to Globes.

In addition, EQUInom has signed an agreement with Obela – a joint venture created between PepsiCo Inc. and Strauss Group Ltd that will use EQUInom’s proprietary seed breeding technology.

“The only way you can change is invest back in innovation,” Mehmood Khan, PepsiCo’s vice chairman and chief scientific officer of global research and development, said in his keynote address at AACC International’s centenary meeting last year, reports Food Dive. “You cannot grow yourself out (of the challenges the food industry faces) by efficiency alone. Yes, this grows the bottom line, but cannot grow the top line without innovation.”

This round of funding brings EQUInom’s total funding to $2.25 million to date, and will be used to support the acceleration of the company’s seed breeding program. Such acceleration comes at an opportune time, as the plant protein market is projected by Mordor Intelligence to increase in value from $7.7 billion in 2015 to $10 billion in 2020.