THURSDAY JUNE 2, 2016

Auckland start-up Engender Technologies has completed a $4.5 million capital raise to propel its livestock sex selection technology to commercialisation.

The company won the agricultural tech category in the World Cup Tech Challenge, held in California’s Silicon Valley, it was announced this afternoon.

Engender, founded in 2012 by University of Auckland associate professor Cather Simpson, uses lasers to sort sperm by sex for the trillion-dollar livestock market.

“Not all calves are equally valuable. So smart farmers would love to be able to determine the sex of each calf for every heifer in the herd,” Prof Simpson says.

“By doing that they could accelerate genetic gain by breeding the top half of the herd with top dairy bulls. They could also get rid of all that waste that happens every year when millions of bobby calves are slaughtered.”

She says the bottom half of the herd could then be bred with top beef bulls, to add value in another market.

There is already a company that does this, but its technology is expensive and “does it really badly as it damages the sperm when it’s sorted,” she says. Engender, using gentler microfluidic and photonic technology, does not do this.

The company recently closed a $4.5 million funding round, after initially seeking $2.5 million. Companies Office records show investors include Hamilton-based artificial insemination company CRV, Pacific Channel, government-backed NZVIF, and a number of angel investor groups.

Pacific Channel’s Brent Ogilvie is Engender’s interim managing director.

Funds will be used to develop a laboratory prototype instrument to use in trials and a commercial prototype chip, as well as securing further commercial intellectual property rights. It expects commercialisation to happen late next year.

Prof Simpson says the microfluidic and photonic chips can be made for a couple of dollars, but sold for up to $500. “The money will vault us to the last stage. If this technology succeeds, it could mean nine-figure revenue for Engender.”

The company estimates if its technology succeeds, New Zealand’s GDP could increase by 0.2%. The global artificial insemination market for agriculture is worth $US2.4 billion.

Prof Simpson is the head of the university’s Photon Factory, which has attracted more than $2 million in commercial contracts since it was founded six years ago.

NBR