Financing3 Despite significant technological progress, scaling bio-innovation from lab to market remains a long, capital-intensive process. Too often, promising biosolutions stall in the “valley of death”– failing to translate from proof of concept into scaled commercial success. Those that reach commercial scale require substantial investment, often far beyond what traditional funding models provide.The challenge lies in the empirical nature for programming biology; even with improved predictive tools, development timelines and associated costs remain challenging to forecast accurately (Box 5). As a result, traditional funding structures insufficiently sustain the prolonged, resource-heavy journey from bench to commercial scale. Addressing the funding gap for commercially scaling bio-innovation requires blended and creative financing. The long road to scale: lessons from bio-manufactured squalene BOX 5 Historically, private funding has played a pivotal role in advancing the tech-driven bioeconomy, with venture capitalists (VCs), industry leaders and private investors actively supporting early- stage companies. But as timeframes and costs increase, traditional financing structures struggle to adequately support the breadth of the scale-up journey. Significant capital needs, long development cycles and corresponding perceived risks deter investors – especially during the critical transition from pilot to commercial-scale production.While economies of scale are gradually improving the commercial competitiveness of the bioeconomy, achieving scale remains a race against time – a challenge not always reflected in traditional financing structures. The resulting funding gap poses formidable barriers to the progress and adoption of breakthrough technologies. To mitigate risk, attract corporate partnerships and unlock adequate commercialization capital, blended financing models that combine public investment with private capital are essential (Figure 5). These approaches have already shown success in helping bio-based ventures overcome barriers to scale.42,43 Even with the best-in-class chassis and state- of-the-art strain engineering capabilities, scaling disruptive bio-innovation takes time. Initial production of bio-manufactured squalene began in the early 2000s, but took over 10 years and considerable funding to reach significant scale. With the squalene market valued at $169.9 million as of 2024,38 increasing portions of the market are now relying on bioproduction. Amyris represents one example of the persistence and time required for commercial success in this space, from initial large-scale production of bio-manufactured squalane in 201139 to achieving 50% market share by 2022.40 Most recently, Amyris completed a successful product sale and long-term manufacturing agreement with Givaudan in 2023 for an estimated total value of $500 million.41 20 From Policy to Practice: Actionable Recommendations for a Commercial Bioeconomy

From Policy to Practice Actionable Recommendations for a Commercial Bioeconomy 2025