By Nathan Rubbelke, St. Louis Business Journal | May 10, 2021
Since its launch, St. Louis-based agtech firm Benson Hill has been backed by some big names.
It’s raised more than $280 million in venture capital from investors such as GV, the venture capital arm of Google, as well global agriculture giants such as Chesterfield-based Bunge Ltd. and Netherlands-based Louis Dreyfus Co.
But also key to its growth has been several St. Louis-based venture investors, which have played a significant role in funding the company since its earliest days.
Benson Hill said Monday it plans to go public through a merger with a publicly traded special purpose acquisition company (SPAC) in a $2 billion deal. Benson Hill, which has developed crop design technology, will merge with Evanston, Illinois-based Star Peak Corp II (NYSE: STPC). After the deal closes, Benson Hill will have an enterprise value of about $1.35 billion. The SPAC deal, if it closes, could mean big exits for Benson Hill’s St. Louis-based shareholders.
Founded in 2012, Benson Hill has developed technology aimed at improving crop varieties with better accuracy, nutritional value and sustainability than traditional breeding methods. It was initially based out of Research Triangle Park in North Carolina, but moved operations to St. Louis and has its headquarters located in a new building that opened in 2020 on the campus of the Donald Danforth Plant Science Center. Several local venture investors have backed the company since its early days, a time in which CEO Matt Crisp says Benson Hill was a “fledgling little startup,” and remain as shareholders in the fast-growing startup. Benson Hill's St. Louis investors have included:
“That’s what we’re trying to do — stand up these companies that can compete for venture capital, be successful economically, return value to shareholders, employ people and build buildings. It’s sort of the best of everything,” he said.
All told, BioGenerator has invested around $775,000 in Benson Hill and remains a shareholder in the startup. Bolten said the addition of a new St. Louis unicorn — a startup valued over $1 billion — provides a milestone for the region’s startup sector. But perhaps more important, he said, Benson Hill's ability to go public would also provide dry powder for local venture firms.
“When that capital goes back into the system, everybody’s happy and so much of it gets put back to work. Our money immediately is going to get put back to work,” he said.
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