A Fargo-based agricultural biotech company has closed an oversubscribed seed round to commercialize what its founders say is a long-overlooked weakness in how farmers inoculate pulse crops.
Lilac Agriculture announced it raised $2.3 million on September 22, 2026, exceeding its $1.5 million target by more than 50 percent. Innova, an early-stage agricultural technology fund with offices in Austin and Memphis, led the round. The investor roster included 701 Fund, Ag Ventures Alliance, Evergreen Climate Innovations, North Dakota Development Fund, Pathway Ventures and Tall Grass Ventures.
For Innova, the bet represents its first investment in agricultural biologicals, a category the firm has studied but largely avoided until now. "We didn't make it lightly," said partner Dean Didato. "We've looked hard at this category."
The nodule problem
Lilac is trying to solve a problem that has frustrated legume growers for decades: even when farmers apply premium bacterial inoculants to their pea and lentil seeds, native soil bacteria often crowd out the commercial strains before they can colonize root nodules. The result is uneven nitrogen fixation and yields that fall short of what the product label promised.
The company licenses exclusive rhizobial strains from North Dakota State University and subjects them to what CEO Dr. Natalie DiNicola calls "guided adaptation." The platform screens bacterial candidates for two characteristics at once — nitrogen-fixing efficiency and the ability to dominate nodules in actual field conditions, not just laboratory flasks.
"A better strain doesn't help a grower if it can't win the nodule in their own soil," DiNicola said. "That's the gap we built Lilac to close."
The startup selected its lead product, PL11, from roughly 1,000 candidates and tested it across a dozen soil types, according to company materials.
NDSU roots, Benson Hill experience
DiNicola spent more than two decades in agriculture and food, including senior strategy roles at Monsanto and Benson Hill, before co-founding Lilac. Chief Science Officer Dr. Barney Geddes runs NDSU's rhizobium research lab as an assistant professor. The other co-founders bring a mix of startup and industry experience: Matt Crisp led Benson Hill as CEO until stepping down in 2023, Tom Snipes previously ran Plant Response, and Wyatt Warkenthien handles operations after graduating from NDSU with a biotechnology degree.
The company currently employs between two and 10 people, based on recent LinkedIn data.
Geddes said his farming background shaped his skepticism of the inoculant market. "The black-box claims in this category always frustrated me," he said. "You put an inoculant in the ground and just have to trust that it works."
Early field data
Multi-site trials showed an aggregate 11 percent yield increase in yellow peas compared to no inoculant and 6 percent versus an existing commercial product, according to company reports. Lilac's own product data lists the average improvement at 3.3 bushels per acre over commercial inoculants and 5.9 bushels per acre versus untreated seed. The startup sold PL11 on a limited number of acres and generated initial revenue, though it did not disclose figures.
Northern Plains expansion, Canada in sight
The new capital will fund expanded field trials, broader PL11 distribution across the Northern Plains, and preparation for entry into the Canadian market. Lilac is pursuing Canadian regulatory registration for its lead product. The company also received a $55,000 grant from North Dakota's Agricultural Products Utilization Commission in June to develop an inoculant for dry beans.
Canada represents a sizable market for pulse crops, producing millions of tonnes of dry peas and lentils annually.
North Dakota state programs have provided earlier support, including a $250,000 Angel Match Program award, a $25,000 Innovate ND voucher, and a $15,000 Operation Intern grant, according to state commerce department records.
Competitive landscape
Lilac will compete with established players including Novonesis, whose TagTeam BioniQ line targets peas and lentils in Canada through distributor Nexus BioAg. BASF offers Nodulator pea and lentil inoculants, and Lallemand Plant Care sells LALFIX products in the region.
DiNicola told AgFunderNews the startup aims to reach profitability with roughly $5 million in total capital, suggesting the current round could be its last major fundraise before breaking even. Whether that timeline holds will depend on how quickly farmers in the Northern Plains and Canada adopt a product promising more reliable nodulation than what they've used before.
Innova typically writes $100,000 to $250,000 seed checks and $1 million to $2.5 million Series A investments, according to the firm's stated investment parameters. The fund's willingness to lead a round above its typical seed range signals confidence in Lilac's approach to a market crowded with legacy brands.
