In recent times, an unexpectedly large number of investments have closed in biotech startups offering sustainable meat alternatives. Why are investors flocking to this field amid a raging pandemic?
Traditional agriculture is a major polluter, especially in the case of meat production. The highest estimations place its share of global greenhouse gas emissions at up to 20%. In an effort to meet the growing demand for sustainability, many biotech companies are developing less energy-intensive sources of protein via fermentation and plant products.
In spite of the financial chaos resulting from the Covid-19 pandemic this year, big money has gone to biotech startups producing meat alternatives. In the US, the prime example is Impossible Foods, which genetically engineers yeast to give plant-based meat alternatives a realistic meat flavor. Last month, Impossible Foods raised a Series G round of 169M ($200M) to accelerate the commercialization of its technology globally.
In Europe, a similar pattern is emerging. The Finnish startup Solar Foods raised a total of 18.5M in a Series A last week. By late 2022, the company plans to launch a protein food ingredient grown from bacteria using electricity, carbon dioxide, water, and nitrogen.
Add to the mix an 8.5M Series A round raised by the German startup Mushlabs, which grows protein-rich mushroom roots via fermentation, and a 19.5M fundraise by Lever VC, a venture firm financing companies developing protein alternatives. Within just a few months, the field has started to blossom.
According to Albrecht Wolfmeyer, International & National Head of the food startup incubator ProVeg, these rounds are just the tip of the iceberg.
Think of precision fermentation and companies like Legendairy in Germany, Remilk in Israel, or Perfect Day in the US, which just raised 254.3M ($300M) in its Series C, Wolfmeyer said. In Europe, the investment rounds are still way smaller but they are growing along with the enthusiasm.
There are several reasons behind this funding surge, said Nick Cooney, founder and Managing Partner of Lever VC. For example, more startups in the field are emerging than ever. And as the first wave of products establish themselves in the market, investors get encouraged to join the party.
In my freezer, I have pints of ice cream from the grocery store that have real whey in them produced via fermentation, without the need for live animals the whey comes from US-based Perfect Day, noted Cooney.
Pasi Vainikka, co-founder and CEO of Solar Foods, likened the situation to the rise of the digital tech sector at the turn of the 21st century. The development of the first mobile devices was basically laying the foundations for a new industrial sector in the global economy, Vainikka explained. I can see the same with food now.
What is most remarkable is that all of this progress comes in spite of the fact that the pandemic threatens economic recessions around the world.
Covid-19 didnt turn out to be as destructive to the food innovation and investment ecosystem as we first thought, said Wolfmeyer. Investors were not as reluctant as expected but mostly rather bullish.
As food companies, they are all deemed essential businesses so never had to pause operations or stop going into the lab, added Cooney.
In fact, dramatic rises were seen in the sales of vegan and plant-based alternatives to meat and dairy products during the pandemic, and they remain high. This surge in demand even outweighed increasing sales of traditional meat and dairy products seen during the hamster shopping season in Spring, said Cooney.
While the field in general seemed robust in the face of pandemic uncertainty, Wolfmeyer and Cooney saw some food biotech startups falling through the gaps, especially those that depended on providing food services. The ProVeg Incubator, for example, advised early-stage startups on how to tighten their belts and apply for governmental support.
What has also become clear this year is that startups making meat alternatives could also strengthen protein supplies during the uncertain times of the pandemic.
Weve seen significant disruptions in the conventional meat supply chain, said Caroline Bushnell, Associate Director of Corporate Engagement at the Good Food Institute in a July article by Fast Company. Companies using fermentation- and cell-based production methods could better automate the meat production process and make it more resilient to Covid-19 shutdowns.
Politicians seem to be thinking along similar lines. Theyre opening up new ways to maintain a steady protein supply in the face of future disruption.
Weve also seen in the past six months governments working to move forward with further establishing the regulatory pathway for biotech-based alternative protein products, as a way to diversify the protein supply chain, said Cooney.
The EU has also recently allocated a 550B recovery fund with a focus on green initiatives such as making agriculture more sustainable. These funds could trickle down to biotechs working in the food and cellular agriculture space, though some worry about the lack of precise guidelines on how to spend this funding.
One of the limitations of this growing movement is the strict stance of the European Commission on products containing genetically modified (GM) ingredients. Impossible Foods is currently awaiting an EU decision on whether it will be able to commercialize its products on European soil. Some believe the company might substitute its meat flavoring for a non-GM alternative to speed up the approval.
For many food biotech startups in Europe, though, this anti-GM environment is no hindrance. For example, Solar Foods doesnt require the use of genetically modified organisms, since it uses a natural strain of bacteria found in soil. Similarly, Mushlabs grows mushroom roots in a fermentation system with no need for genetic engineering.
In general, the main obstacles standing in the way of getting lab-grown food into the mainstream are pricing, quality, and public image. Affordable pricing will take time while the startups scale up their technology. Food quality and public image could still have an uphill struggle given the historically mixed reception of fake meat.
Maybe its for companies like ourselves now to prove new products are good enough so that they dont taste like in the past, Vainikka said.
So it must taste good and be equal, or better than, what we have today. Then people will naturally go for it.
Images from Elena Resko and Solar Foods
Read more:
Investor Interest in Meat Alternative Biotechs... - Labiotech.eu
- First cow to produce human insulin in its milk created in Brazil - Cosmos - March 18th, 2024
- Engineering the Microbiome: CRISPR Leads the Way - The Scientist - March 18th, 2024
- The de-extinction process to bring woolly mammoths back to life - The Week - March 18th, 2024
- CRISPR gene editing applications are expanding dramatically in agriculture. Here are the latest advances - Genetic Literacy Project - March 18th, 2024
- Polymerase Chain Reaction (PCR) - National Human Genome Research Institute - March 18th, 2024
- Colossal Genetic Breakthrough Could Be the Key to Reviving Wooly Mammoths - Syfy - March 18th, 2024
- Breaking: Crop gene editing greenlighted by European Parliament. Fight over labeling looms as measure moves to the ... - Genetic Literacy Project - February 10th, 2024
- GMOs on the spotlight in East Africa again - The Citizen - February 10th, 2024
- Blog: Let's Not Ignore the Science in the Fight Against Malaria - chimpreports.com - February 10th, 2024
- Genetic engineering techniques - Wikipedia - January 9th, 2024
- 20.3: Genetic Engineering - Biology LibreTexts - January 9th, 2024
- Genetic Modification Techniques and Applications - Technology Networks - January 9th, 2024
- Transformation-associated recombination (TAR) cloning and its applications - EurekAlert - January 9th, 2024
- Are GMOs Safe? The Benefits of Science-Enhanced Foods | TIME - TIME - January 9th, 2024
- Here's the skinny on fast-emerging genetic engineering tools that are rapidly improving global farming - Genetic Literacy Project - January 9th, 2024
- What Fruit Looked Like 100 Years Ago, Before Genetic Modification - Green Matters - January 9th, 2024
- APHIS Reopens Comment Period on Proposed Additional Exemptions for Plants Modified or Produced Through Genetic Engineering - The National Law Review - January 9th, 2024
- Restriction Enzyme Market is set to Reach US$ 647.41 million at a CAGR of 5.7% from the forecast period 2023 to ... - GlobeNewswire - January 9th, 2024
- Genetic engineering - DNA Modification, Cloning, Gene Splicing - December 13th, 2023
- Star Trek: Julian Bashir's Tale of Genetic Engineering and the Complexity of Parental Acceptance - GameRant - December 13th, 2023
- How to Improve Livestock Health, and Cut - Breakthrough Institute - December 13th, 2023
- Opinion | The Genetically-Engineered Tree That Never Was - Common Dreams - December 13th, 2023
- Genome Editing Market Size and Share to Surpass USD 14.5 billion by 2035 | Roots Analysis - Yahoo Finance - December 13th, 2023
- Dallas-Based Colossal Biosciences Aims to De-Extinct the Woolly Mammoth - The Texan - December 13th, 2023
- Revolutionizing probiotic therapy: The emergence of CRISPR-Cas engineered strains - Medical Xpress - December 13th, 2023
- Genetically engineered cell therapies with mRNA lipid nanoparticles for transferrable platelets - Phys.org - December 13th, 2023
- 'Perhaps GMOs are closer to natural processes than we think': How genetic modification mimics natural evolution of ... - Genetic Literacy Project - December 13th, 2023
- Advancements in Genome Editing and CRISPR-Cas9 Technology - Medriva - December 13th, 2023
- Gene Therapy: Unlocking Innovations in Cancer Treatment, Detection, and Drug Development - Securities.io - December 13th, 2023
- Mayo Clinic Research on Genetically Engineered Virus and CAR-T Cell Therapy for Liver Cancer - Medriva - December 13th, 2023
- Global Gene Editing Market Poised for Significant Growth, Projected to Reach $14.28 Billion by 2027 - EIN News - December 13th, 2023
- Principles of Genetic Engineering - PMC - National Center for ... - May 17th, 2023
- Quitting: A Life Strategy: The Myth of Perseveranceand How the New Science of Giving Up Can Set You Free - Next Big Idea Club Magazine - May 17th, 2023
- 18 Human Genetic Engineering - Clemson University - March 29th, 2023
- Pros and Cons of Genetic Engineering - Benefits and Risks - March 29th, 2023
- How artificial skin is made and its uses, from treating burns to skin cancer - South China Morning Post - March 29th, 2023
- Genetic Engineering - Meaning, Applications, Advantages and Challenges ... - March 13th, 2023
- Revolutionary Specialty Enzymes Transform Industries, Projected to Reach $2.2 Billion by 2031 - Billion-Dollar - EIN News - March 5th, 2023
- Explained: What is genome editing technology and how is it different from GM technology? - The Indian Express - April 2nd, 2022
- Scribe Therapeutics to Participate in Upcoming Goldman Sachs The New Guard: Privates Leading the Disruption in Healthcare Investor Conference - Yahoo... - April 2nd, 2022
- San Antonio Zoo In Discussions on Woolly Mammoth Project - iHeart - April 2nd, 2022
- Xenotransplantation trials will require adjusting expectations, experts say - STAT - April 2nd, 2022
- 5 Interesting Startup Deals You May Have Missed In March: Restoring The Woolly Mammoth, Faux Seafood And Lots Of Bees - Crunchbase News - April 2nd, 2022
- Synlogic to Present Data on Phenylketonuria and Homocystinuria Programs at the Society for ... - KULR-TV - April 2nd, 2022
- The Bay Area food tech industry is creating more than vegan burgers. Heres whats next - San Francisco Chronicle - April 2nd, 2022
- Student Startup Teams to Compete For $110000 Cash Prize Pool in U of A's Heartland Challenge - University of Arkansas Newswire - April 2nd, 2022
- Should we test for differences in allergen content between varieties of crops and animal species? - Open Access Government - April 2nd, 2022
- Genetic Engineering - Courses, Subjects, Eligibility ... - December 22nd, 2021
- Scientists Used CRISPR Gene Editing to Choose the Sex of Mouse Pups - Singularity Hub - December 22nd, 2021
- Report calls for broad public deliberation on releasing gene-edited species in the wild - EurekAlert - December 22nd, 2021
- RNA and DNA Extraction Kit Market Study | Know the Post-Pandemic Scenario of the Industry - BioSpace - December 22nd, 2021
- Opinion: Allow Golden Rice to save lives - pnas.org - December 22nd, 2021
- It's time for an alliance of democracies | TheHill - The Hill - December 22nd, 2021
- Aridis Pharmaceuticals Announces a Pan-Coronavirus Monoclonal Antibody Cocktail That Retains Effectiveness Against the Omicron variant, other COVID-19... - December 22nd, 2021
- 2021: when the link between the climate and biodiversity crises became clear - The Guardian - December 22nd, 2021
- Wuhan lab leak now the most likely cause of Covid pandemic and the truth WILL come out, experts tell MPs... - The US Sun - December 22nd, 2021
- Biotech ETFs That Outperformed Last Week - Yahoo Finance - December 22nd, 2021
- Human genetic enhancement - Wikipedia - October 5th, 2021
- Viewpoint: Part 1 Opposition stirred by anti-GMO advocacy group propaganda fading in the developing world, as more countries embrace crop... - October 5th, 2021
- Amyris Partners with Inscripta to Enhance Development of Sustainable Ingredients Using the Onyx Genome Engineering Platform - WWNY - October 5th, 2021
- Kingdom Supercultures raises $25m to expand Non GMO suite of microbes to unlock new flavors, textures, and functionalities in food & beverage -... - October 5th, 2021
- Fact check: Genetically engineering your salad with the COVID-19 vaccines? We're not there yet. - USA TODAY - October 5th, 2021
- Making the Transition from an Academic to a Biobusiness Entrepreneur - Genetic Engineering & Biotechnology News - October 5th, 2021
- Is The New York Times Finally 'Learning To Love GMOS'? - American Council on Science and Health - October 5th, 2021
- Gene editing, joke theft and manifesting - The Week UK - October 5th, 2021
- Opinion: Saving lives through real social justice - Agri-Pulse - October 5th, 2021
- What is biohacking? - News Anyway - October 5th, 2021
- Science, business and the humanities: CP Snow's 'Two Cultures' sixty years on - TheArticle - October 5th, 2021
- Probiotic Yeast Engineered To Produce Beta-Carotene - Technology Networks - April 17th, 2021
- In the US, Imminent Release of Genetically Modified Mosquitoes To Fight Dengue - The Wire Science - April 17th, 2021
- CRISPRoff: A New Addition to the CRISPR Toolbox - Technology Networks - April 17th, 2021
- A Massive New Gene Editing Project Is Out to Crush Alzheimer's - Singularity Hub - April 17th, 2021
- Grammar of the Genome: Reading the Influence of DNA on Disease - Baylor University - April 17th, 2021
- We cannot let China set the standards for 21st century technologies | TheHill - The Hill - April 17th, 2021
- First GMO Mosquitoes to Be Released in the Florida Keys - Singularity Hub - April 17th, 2021
- Novavax to Participate in University of Oxford Com-COV2 Study Comparing Mixed COVID-19 Vaccine Combinations - BioSpace - April 17th, 2021
- AmunBio and NorthShore University to Advance Cancer Immunotherapy with Engineered Oncolytic Viruses - OncoZine - April 17th, 2021
- StrideBio Announces a Multi-technology License and Master SRA with Duke University to Advance Next-generation Gene Therapies - BioSpace - April 17th, 2021
- ThermoGenesis : The History of Cell and Gene Therapy - marketscreener.com - April 17th, 2021
- EU's refusal to permit GMO crops led to millions of tonnes of additional CO2, scientists reveal - Alliance for Science - Alliance for Science - February 14th, 2021