Unlocking the $4T Bioeconomy - with Edward Shenderovich, CEO of Synonym
On building the biomanufacturing cloud, separating ownership from usage in infrastructure, and advice for climate-tech and infrastructure entrepreneurs.
Welcome to Down to Zero where we (Florian & Shaneez) speak with climate tech leaders about how to build a successful climate-tech company. Follow along to learn their playbooks and how you can apply them to further your career in climate-tech.
In today's episode, we sat down with Edward Shenderovich, co-founder and CEO of Synonym. Synonym is revolutionizing the bioeconomy by creating both digital and physical infrastructure to scale biomanufacturing.
Read on for highlights from our conversation, including:
How Synonym is building the "AWS for biomanufacturing"
The company's journey from software to physical infrastructure
Strategies for convincing large companies and infrastructure funds to invest
Key steps and challenges in developing biotech infrastructure
Advice for entrepreneurs entering the bioeconomy space
The Promise of the Bioeconomy
Edward's journey into the bioeconomy started with a realization: biology is already all around us, from the food we eat to the medicines we take. Yet, the term "bioeconomy" itself is relatively new. Edward sees the bioeconomy as a major driver of economic growth in the coming decades, with the potential to revolutionize industries from agriculture to pharmaceuticals.
"The bioeconomy is an important driver of planetary health. And I say planetary health, not only climate change, but planetary health broadly, because it's something that can help us solve […] problems and make the planet better."
Synonym's Two-Pronged Approach
Synonym is tackling the bioeconomy challenge from two angles:
Software: Making biomanufacturing markets more transparent and efficient with tools like Capacitor (a directory of biomanufacturing capacity) and Scaler (an automated technoeconomic analysis tool).
Physical Infrastructure: Building biomanufacturing facilities by partnering with companies and investors.
This dual approach allows Synonym to generate revenue through software while working towards the longer-term goal of building physical infrastructure.
Synonym focuses on three main customer types:
Early-stage or developed synthetic biology companies looking to scale production
Large corporations aiming to integrate bioproducts into their supply chains
Private equity and infrastructure investors seeking new asset classes
Unlocking Infrastructure Fund Capital for Physical Infrastructure
Edward sees the first market in commercial operation and production:
"We need specialized industrial and food-related bio-manufacturing facilities, which are modular, reusable, and ultimately scalable, so that as technology changes and as technology progresses, that steel in the ground retains value."
A major goal for Synonym is to make biomanufacturing facilities attractive to infrastructure funds, which typically invest in more traditional assets like bridges and airports. Edward sees the derisking of novel technologies through infrastructure financing as a crucial step in scaling the bioeconomy and other climate technologies at a similar stage of nascency:
"Over the last couple of decades, we have seen that happen with novel asset classes. Data centers are a good example. First data centers were on the balance sheets of companies. Then they started attracting higher yielding capital, primarily private equity. And then ultimately now a lot of that infrastructure is owned by REITs."
Challenges and Strategies in Infrastructure Development
Developing biotech infrastructure is complex, involving multiple steps from site selection to facility commissioning. Edward breaks down some key processes and considerations:
Project Planning and Feasibility:
• Front-End Loading (FEL): Conducting thorough analysis before making major investments.
• Conceptual and Basic Design: Developing initial plans and specifications.
• Detailed Engineering: Creating comprehensive blueprints for construction.
Site Selection:
• Energy Profile: Ensuring access to reliable, preferably renewable energy sources.
• Water Access: Considering water availability and quality for operations.
• Labor Pool: Evaluating the local workforce for skilled operators and engineers.
• Feedstock Availability: Assessing proximity to necessary raw materials.
Brownfield vs. Greenfield Development:
• Brownfield Advantages: Lower costs, existing infrastructure, potentially faster timelines.
• Greenfield Benefits: Custom-built facilities, room for expansion, no legacy issues.
Engineering Complexity:
• Mass Energy Balance: Ensuring efficient flow of materials and energy through the system.
• Pressure Management: Designing for safe operation of high-pressure equipment.
• Scalability: Planning for future expansion and technology upgrades.
Financing and Partnerships:
• Offtake Agreements: Securing commitments from large companies to make projects bankable.
• Strategic Partnerships: Collaborating with established players in the industry.
• Government Support: Leveraging public funding and incentives for climate-tech projects.
Regulatory Compliance:
• Environmental Impact Assessments: Ensuring projects meet local and national standards.
• Safety Regulations: Designing facilities to meet or exceed safety requirements.
Commissioning and Operations:
• Testing and Verification: Ensuring all systems function as designed before full operation.
• Training: Preparing the workforce to operate new technologies efficiently.
• Continuous Improvement: Implementing systems for ongoing optimization and upgrades.
Edward emphasizes the importance of making this complex process seem simple to customers:
"Our job as Synonym is to make sure we make it simple for our customers. We need to hide the complexity of building that infrastructure, of doing all the feasibility work and doing all the engineering and the construction work and the site selection. We want to make sure that for our customers, it's a simple process."
Advice for Climate-Tech Entrepreneurs
Edward offers encouragement to those looking to enter the climate-tech space:
Play to your strengths: Focus on what you're good at and where you're confident.
Think of early ways to catalyze revenue: For example, through software sales that serve as a wedge to future hardware or infrastructure sales.
Persevere: The field may seem impenetrable at first, but with time and effort, challenges become opportunities.
"If you play to your strengths, you start that impenetrable wall of information turns into like a climbing wall of execution, and you start seeing holes and you ultimately maybe don't need to go through the wall, maybe you can actually climb over it."