Arthur C. Clarke's third law states that any sufficiently advanced technology is indistinguishable from magic.
BioLumic increases crop yields by applying ultraviolet (UV) light to seeds, seedlings, and plants in very specific “recipes” to control their growth patterns. Stressing plants by shining UV light in the right quantity, at the right time in their development provokes a response that makes the plants hardier – bigger stems, bigger leaves, and better overall resilience.
When I first heard about BioLumic a couple of years ago, I thought, yeah, nah, that's crackpot pseudo-science. But this technology is based on hard scientific research, and it appears to work. It looks likely to revolutionise commercial agriculture by increasing crop yields without genetic modification or chemicals – just add light.
BioLumic's founder and Chief Science Officer is Massey University's Dr Jason Wargent, a world-renowned expert on plant photomorphogenesis – the effects of light on plant growth and development. He's published a Ph.D thesis on the topic and numerous papers, and is now working with CEO Warren Bebb and a team of 7 to commercialise his research. They have filed three patents which are currently going through local and international examination.
And it's generating some stunning results. BioLumic are currently running trials with lettuce growers in Salinas, California – the USA's major lettuce growing area. For head lettuce, they're getting a 10% increase in the number of heads of lettuce per unit land area, resulting in a 25% EBIT uplift for the grower. For processed lettuce, they can achieve a 26% increase in tonnes per hectare – all without genetic modification or additional chemicals. Trials with corn are underway in NZ, with the first harvest expected in April.
The numbers tell a big story too. In 2016, they'll be treating 35 million seedlings. The lettuce market alone in the USA is a $2b market, and fresh cut vegetables is an $82b market globally. If you add in seeds and cereals, that takes it up to $650b. And this market is growing – it's estimated that the world will need to grow 50% more food by 2050, despite a best-case scenario of bringing an additional 10% of arable land online by then. Something big is going to be needed to fill that gap, and BioLumic could be the answer.
They have a recurring revenue model based on installing equipment onsite, and then charge a per-plant treatment fee. They plan to set up operations and distribution in each territory that they'll be operating in. They're currently scoring key customers in the USA, and will branch out from there.
To date, BioLumic have run a seed round, a top-up round, an two angel rounds with participation from Manawatu Investment Group (MIG), NZVIF, ICE Angels, Enterprise Angels, K1W1, Massey Ventures, Sparkbox, and others. They have runway through mid-2017, and the next round is likely to be a mix of VC plus strategic investment.
BioLumic is a great example of breakthrough Kiwi agricultural ingenuity contributing to the solution of a serious world problem, and potentially creating massive value along the way.