What did Verdezyne produce?

Verdezyne engineered yeast to produce dodecanedioic acid (DDDA), a chemical building block used in manufacturing nylon 6,12, lubricants, and specialty polymers. The company positioned its bio-based production route as a renewable, lower-cost alternative to petroleum-derived DDDA.

Why did the oil price crash affect Verdezyne?

Verdezyne's competitive advantage depended on petroleum-derived DDDA being expensive relative to its yeast-fermentation process. When crude oil prices fell from $100 to $50/barrel in 2014-2015, petroleum feedstock became dramatically cheaper, eliminating Verdezyne's cost advantage.

What investors backed Verdezyne?

Verdezyne raised $83M from investors including BP Ventures (the oil major's venture arm), DSM Venturing (a specialty chemicals company), and Draper Fisher Jurvetson. The backing from incumbent chemical and energy companies was seen as validation of the technology.

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// HALL OF FLAME · STARTUP AUTOPSY

Founded	2009
Closed	2017
Country	USA
Sector	Climate
Total raised	83
Collapse type	Silent Shutdown

Verdezyne

$83M

RAISED

—

EMPLOYEES

MONTHS

market collapseSilent Shutdown

Quiet closure with no public announcement

// Fatal mistake: Business model entirely dependent on petroleum feedstock costs remaining high — oil price collapse made bio-based route uncompetitive in a single year

Key Events Timeline

2009-01

FOUNDING

Verdezyne founded

2013-06

LAYOFF

Market downturn forces cuts

2017-06

SHUTDOWN

Silent Shutdown: Verdezyne ceases operations

🔥 Hall of Flame 42%🏆 Hall of Fame 8%

Verdezyne engineered yeast strains to produce dodecanedioic acid (DDDA), a 12-carbon dicarboxylic acid used in manufacturing nylon, lubricants, and specialty polymers.

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