Colossal Biosciences, renowned for its mission to revive the woolly mammoth along with two other extinct species, has successfully secured a $200 million Series C funding round, achieving a remarkable valuation of $10.2 billion. This investment comes from TWG Global, the firm owned by Guggenheim Partners co-founder Mark Walter, in addition to billionaire Thomas Tull. Notably, this funding arrives two years after the company concluded its previous funding round at a reported valuation of $1.5 billion.
There is interest in understanding why investors have injected such substantial capital into a company that has yet to report any revenue and whose key projects, namely the revival of the mammoth and the Tasmanian tiger, are anticipated to reach fruition no earlier than 2028.
Colossal Biosciences’ co-founder and CEO mentioned that the investor base has expressed significant admiration for the rapid development of new technologies by the company.
The firm asserts it has achieved remarkable advancements in its three key initiatives: the mammoth, the Tasmanian tiger (thylacine), and the dodo bird. Colossal is reportedly on track to meet or exceed its timeline for resurrecting these species.
Colossal’s methodology for reviving extinct species involves thoroughly mapping the genome of each species and contrasting it with that of its nearest living relative. For the mammoth, this relative is the Asian elephant. According to the CEO, the genomic mapping phase has been successfully finalised for both the mammoth and the thylacine. Subsequently, the company’s scientists are now utilising the gene-editing tool CRISPR to modify the cells of the Asian elephant. In the concluding phase, these altered cells will be injected into an egg cell, and the resulting embryo will be implanted into an elephant, leading to the birth of a baby mammoth.
To realise its objectives, Colossal has been developing various innovative technologies, including artificial wombs, which are expected to play a pivotal role in birthing future generations of “de-extinct” animals.
The CEO stated that some of these technologies could have transformative implications for healthcare, agricultural technology, and various other sectors.
While Colossal Biosciences aims to rejuvenate extinct species and improve biodiversity, the primary appeal for investors likely resides in the vast potential of its technologies.
Over the next two years, Colossal plans to spin off three businesses, one of which will focus on its artificial womb technology, potentially benefiting fertility treatments.
The company has already established two spinoff ventures: One of these, named Breaking, is dedicated to developing solutions for plastic degradation and successfully acquired $10.5 million in seed funding. The other is Form Bio, a computational biology platform, which raised $30 million in funding.
Collaborations with government entities represent another potential revenue stream. While Colossal provides its conservation technologies to governments free of charge, some nations have requested assistance from Colossal in efforts to conserve endangered species. Additionally, certain governments are exploring de-extinction initiatives for animals of cultural and, at times, spiritual significance to their populations.
Should Colossal succeed in reviving and reintroducing any of the species back into their natural habitats, the company expects to earn revenue through biodiversity credits, akin to carbon credits in market value.
The CEO asserted that the company’s three projected revenue streams—technology, government collaboration, and biodiversity credits—have the potential to generate billions in annual recurring revenue, showcasing the economic prospects in the short, mid, and long term for the company.