Nalu Bio Raises $12 Million in Series A Funding Round to Scale Production of Synthetic Cannabinoids

SAN FRANCISCO– A based producer of synthetic cannabinoids, Nalu Bio, announced on Tuesday that it had raised $12 million in a Series A funding round, led by Intrinsic Capital Partners, a Pennsylvania-based investment firm focused on life science and technology businesses in the legal cannabis and hemp industries. Other backers include Flybridge Capital Partners, Portfolia Active Aging & Longevity Fund, Bonaventure Equity, L37 Ventures, Golden Seeds, Sacramento Angels, Brown Angel Group and Axial Venture.

The funds will be used to accelerate growth and scale production of cannabinoids for consumer products and therapeutics after its “cost-effective” synthesis of the nonpsychoactive, minor cannabinoid THCV. Unlike other synthesized cannabinoid makers, Nalu Bio said it created a production technique utilizing organic, non-hemp compounds that are converted into the desired cannabinoid ingredient, generating “molecularly identical versions of naturally occurring cannabinoids” free from contaminants sometimes found in hemp-extracted cannabinoids.

Nalu Bio plans to launch a full suite of cannabinoid-like products mimicking CBD, THCV, CBN, CBC, CBG and others while expanding its scientific and commercial teams to meet global demand. The investment comes amid a tough stretch of raising capital in the cannabis and hemp sectors, where deals are in short supply and terms costly. Regulators in Connecticut, Virginia, and Utah are also taking a much more stringent view on cannabinoids, with some states cracking down on the production and sale of delta-8 products and their derivatives. Lawmakers in West Virginia are proposing a ban on products containing delta-8 THC.