InsectiGen, a biotechnology company based in Athens, Georgia, today announced that it closed on a round of venture funding totaling $1.16 million, allowing it to hire additional researchers and continue developing its bio-pesticide products.

This is the second big announcement for the young company this year.  In July, InsectiGen licensed its patented BtBooster(TM) technology for cotton to Pioneer Hi-Bred International, Inc., a subsidiary of DuPont, for use in making better pest-resistant crops.

"This round of funding will allow us to develop our bio-pesticides business and hire a director of research and development," said InsectiGen CEO Cliff Baile, who is also a Georgia Research Alliance Eminent Scholar in
Agricultural Biotechnology and Distinguished Professor of Animal Science and Foods and Nutrition at the University of Georgia. "With the support of the University, the GRA, and the State of Georgia, we continue to move our
technology and business forward."

Funds came from the Georgia Venture Partners Seed Fund and the Georgia Biosciences Seed Capital Fund, which both invest in promising early-stage companies.  These two institutional investments amounted to approximately
$550,000, with the remainder coming from individual angel investors.

"One of the best ways for Georgia to compete in the global economy is for the state to grow its own innovation-based businesses," said Georgia Governor Sonny Perdue. "This is a great example of how Georgia's model has worked."

The investment was one of the first for the $3 million Georgia Biosciences Seed Capital Fund, which was raised to help accelerate the formation and growth of bioscience companies in Georgia.  The fund invests only as part of a
larger deal involving private investors; each state dollar from the fund must be leveraged to bring in at least three dollars in private investment.

"The availability of seed capital in Georgia is essential to building the state's community of life sciences companies," said Wayne Hodges, Georgia Tech's vice provost for Economic Development and Technology Ventures.  "We are pleased that the Georgia Biosciences Seed Capital Fund is helping grow companies like InsectiGen."

Developed by Michael Adang, UGA Professor of Entomology, Biochemistry and Molecular Biology, InsectiGen's licensed BtBooster(TM) technology has the potential to help increase worldwide crop yields and farm level productivity. The BtBooster(TM) product can be effective against pests in both biotech crops and plant surface applications.  Adang also serves as the company's chief scientific officer.

InsectiGen has been supported in its early stages by the GRA through its Venture Lab and Innovation Fund programs.

"This is an exciting outcome for InsectiGen that will help Georgia growers and citizens," said GRA President and CEO Mike Cassidy.  "Recruiting the right talent and using a strong network of support to transform a discovery into a commercial product is what GRA is all about."

Both UGA and GRA provided laboratory equipment, a willing supply of researchers and graduate students, grant funding and facilities for the company during the development of the BtBooster(TM) technology.

"InsectiGen is an exciting new Georgia agbio company, with superb scientific leadership from Cliff Baile and Mike Adang," said John Richard, managing director of Georgia Venture Partners.  "Biotechnology solutions for
crop protection are making extraordinary contributions to the agricultural industry, and we believe InsectiGen can be a leader in bringing next generation technology to the marketplace."

Harmful insects produce over $30 billion in crop losses and cause $3 billion in forest damage each year.  They also transmit diseases that kill more than 2.8 million people annually, according to the International Service for the Acquisition of Agri-biotech Applications and the Centers for Disease Control and Prevention. InsectiGen has developed biological control technologies that suppress these insects, and is developing and commercializing a pipeline of products that will offer environmentally friendly alternatives to chemical and other natural pesticides.  InsectiGen's business foundation is the commercialization of its expertise and ability to produce economically valuable technology. It is focusing on two core areas:

• BT Transgenic Crop Protection:  This line of business will offer Bt performance improvement technologies to the genetically modified crop protection trait markets. The total available market for this line of business is $3 billion.
• BT Bio-pesticides Crop Protection: This line of business will offer engineered Bt proteins and performance enhancement proteins for use by the row crop and high-value crop industries, the forest pest control market and public health agencies. The total available market for this class of bio-pesticides is now $160 million.