Ceres, a California biotechnology company focused on creating genetically modified switchgrass, sorghum and other plants that can be more easily converted into biofuels, will on Thursday announce $75m in late-stage venture funding.

The deal, one of the largest of its kind in the burgeoning "cellulosic ethanol" industry, was led by Warburg Pincus, the private equity group. It is the latest sign of growing interest in startups working on alternatives to corn-based ethanol and other "first-generation" biofuels.