AliBio (Alianza con la Biosfera)

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AliBio creates biotechnology solutions for agriculture, aquaculture, and water treatment that help reduce the use of synthetic chemicals, energy, and wastewater and increase the sustainability of these sectors.

Market Opportunity:

• Approximately $500 million is spent on agrochemicals in Mexico each year, contributing to soil degradation, biodiversity loss, and groundwater, land, and air contamination.

• AliBio estimates the agriculture market size to be over $56 million and the aquaculture market size to be over $17 million in Mexico alone, with US figures exceeding those of Mexico.

Unique Business Solution:

• Business Model: AliBio, which is short for Alianza con la Biosfera (Alliance with the Biosphere) researches, develops, and sells biotechnology products for agriculture, aquaculture, and water treatment. AliBio works with customers to create solutions that have been tailored to meet customer needs. The products are developed from microorganisms. Different microbial strains are carefully combined to create products for agriculture that restore the microbial balance of soils and reduce the need for fertilizer. When used in aquaculture, the microbial products degrade organic compounds and toxic bacteria to improve water quality. Improved water quality lessens the need for water pumping, which reduces energy use and water exchange costs. Microbes also maintain disease control in farmed fish, and increase the quality of harvested aquaculture produce. AliBio biotechnology can also be applied to waste water treatment. The modular equipment takes up less space than conventional equipment and meets national water standards, and the recycled water can be used in toilets and gardening, reducing waste water.

• Competitive Advantage:

  • All AliBio products are protected by trade secrets and patents, and while many competitors have only 6 strains of bacteria with which to design their products, AliBio has over 2,000 strains.

  • AliBio has low production costs and creates high-quality products that consistently deliver results.

• AliBio clients include private agriculture, aquaculture, and housing developers that, under new Mexican regulations, must properly manage waste water.

Environmental & Social Impacts:

• The use of AliBio products in agriculture can reduce the need for fertilizer by 10-25%.

• The microbes in the AliBio aquaculture products help maintain water quality, thereby reducing water pumping and energy consumption.

• All products are non-toxic, non-carcinogenic, not genetically modified, all natural, and safe to use.

Successes:

• AliBio’s founder was named “Entrepreneur of the Year in Biotechnology” in 2010 by Ernst & Young Mexico, and AliBio was a finalist for the American Express award for innovative and sustainable companies in 2010. AliBio has also received awards from CONACYT, the national council of science and technology.

• AliBio has received certification from the Organic Materials Review Institute, which provides independent review of the products intended for organic production, in 2006 and 2010.

Future Plans & Challenges:

• AliBio aims to expand internationally, and efforts are underway with the establishment of a US office. The AliBio business model can easily be replicated anywhere in the world.

• Although AliBio faces industry resistance to new alternatives, there is growing support for sustainable products and an increasing demand for natural products

Partnering with New Ventures:

• New Ventures Mexico helped AliBio improve their business model and plan. Specifically, New Ventures Mexico helped AliBio indentify the opportunity and benefits of focusing on water treatment for real estate and housing development rather than industrial water treatment.

• New Ventures Mexico helped AliBio gain exposure. After working with New Ventures Mexico, AliBio’s founder was selected as one of ten entrepreneurs of the year by Expansión magazine in Mexico.

• Through partnership with New Ventures, AliBio became one of the first SMEs to complete a sustainability report following the Global Reporting Initiative framework. The 2006 Sustainability Report is available here.

Financial information on this company has not been included for confidentiality reasons. Please click here to learn how you can receive more information about this company.

Profile Updated: March 2011

AliBio attended the New Ventures Global Investor Forum: Green Opportunities in Tomorrow’s Markets in New York City on April 6, 2011 along with five other innovative New Ventures environmental enterprises. Click here to read about the Global Investor Forum and to learn more about upcoming regional investor forums.