Local maker of organic oils rakes in $9.5M in venture funding

Indianapolis-based Biosynthetic Technologies has received $9.5 million in venture capital as it develops lubricants and other oils made from the organic fatty acids in plants and prepares for its first product launch.

The round of financing was led by Indianapolis-based HG Ventures, which is the corporate venture arm of a major shareholder in Biosynthetic Technologies’ parent company.

Formerly based in California, BT was acquired in 2018 by Biosyn Holdings, whose shareholders are The Heritage Group and Calumet Specialty Product Partners LP. Both companies are based in Indianapolis.

The Heritage Group is a family-run business holding company, and in 2018 it launched HG Ventures to invest in early- and growth-stage firms.

The company said at the time that the venture arm would have "the capacity to make game-changing investments that will position THG for future growth and business line expansion.” HG Ventures is expected to invest $50 million in companies annually.

Founded in 2006, BT now is headquartered at The Center, a research and development facility for Heritage Group companies located in Intech Park on Indianapolis’ west side. The company has 10 employees.

BT is focused on developing, manufacturing and selling “biosynthetic” oils, which have numerous uses in the lubricant, chemical, and cosmetics industries. Such oils are biodegradable and nontoxic, the firm says, giving them an advantage over petroleum-based counterparts.

The firm expects to launch its first commercial products next month, according to CEO Mark Miller.

"Biosynthetic Technologies' sustainable-hydrocarbon product line is well-timed as the industry is demanding environmentally safer alternatives while also demanding higher performance," said John Glushik, managing director of HG Ventures, in a media release.

"We believe the market will continue to grow both in terms of synthetic performance and sustainability. We are confident we have the right team and the right product at the right time. That's a recipe for success,” said Glushik, who will join BT’s board of directors.

According to a media release from the company, BT recently expanded its research and development team and continues to grow its sales and marketing efforts.