Investors are pouring $11 million into Sydney-based AgTech startup, Number 8 Bio, betting that it has cracked one of the industry's most expensive and persistent problems: making methane reduction profitable for farmers.

The Series A round was led by New Zealand's Icehouse Ventures, with follow-on support from Main Sequence and new participation from Japan's ONE Innovators. The capital is earmarked for Number 8 Bio's product, "BetterFeed," a livestock feed supplement that claims to significantly cut methane emissions while simultaneously improving farm productivity.

The company's co-founder and CEO, Dr Tom Williams, framed the problem as a simple inefficiency. "Enteric methane is one of agriculture's most stubborn challenges," he said. "Every burp represents lost nutrition. Up to 12 per cent of what farmers feed their animals is literally disappearing into the air. That's inefficiency, and inefficiency is exactly where innovation should start."

Unlike competitors using seaweed or bromoform-based solutions, Number 8 Bio is using a "proprietary organic small molecule." The company says this active ingredient can be manufactured scalably in Australia using green chemistry, making it more cost-effective for commercial agriculture.

The startup claims its R&D process is its key advantage. "What sets us apart is our platform technology that models the rumen and allows us to rapidly find and screen products," Dr Williams said. "Our scientists move from lab to animal trials and back again in weeks, not years."

Independent trials have already shown up to 90 per cent methane reduction. The product line is being developed as both a feed additive and a slow-release capsule designed to last up to six months, targeting the massive grazing market.

Investors were blunt about the commercial challenge. "Methane reduction is the holy grail problem to solve as a startup, but most efforts fail at the first hurdle: making a business model that works," said Mason Bleakley, Principal at Icehouse Ventures. "When I met Tom, it was clear that Number 8 Bio was a startup with the economics figured out."

Bleakley added, "By both increasing yields for farmers at the front end, and reducing emissions on the back end, Number 8 Bio proves that profit and the planet can co-exist."

Main Sequence Partner Gabrielle Munzer, who led the startup's Seed round, echoed the sentiment. "Following on in the Series A was an easy decision," she said. "The company has proven it can deliver a methane reduction solution that's not only scalable and economically sound, but ready for commercialisation now."

The new capital will fund large-scale animal trials and the pursuit of regulatory approvals for key international markets, including New Zealand, Europe, and the United States.

A significant part of the strategy involves launching a carbon-insetting program. This would allow farmers and their supply chains to claim verified emissions reductions, creating a new layer of value.

The investment from Japan's ONE Innovators highlights a clear trade-based opportunity. Japan is Australia's second-largest beef export market, and reducing emissions in that supply chain is a major target.

"The opportunity is not only in importing lower-emission beef from Australia... but also in applying BetterFeed within Japan to reduce domestic emissions in the future," said Murakami Teruyoshi, General Partner at One Innovators.

Number 8 Bio is finalising its patents and aiming for an Australian market launch in 2026.