Alt-Protein Companies Secure New Funding

Future Farm Raises $58 Million to Launch in U.S. Retail

Latin American plant-based food company Future Farm last week announced it has closed a $58 million Series C funding round as it makes a push into the U.S. market and gears up for new product launches.

This latest funding round, led by BTG Pactual and Rage Capital, values the company at $400 million and brings its total capital raised to date to $89 million.

Founded in 2019 by Macros Leta and Alfredo Strechinsky, Future Farm offers legume and soy-based beef, chicken and sausage alternatives sold at 10,000 points of retail distribution across Europe, Latin America and Asia Pacific.

This summer, the company added Alexandre Ruberti, former U.S. president of Red Bull Distribution and EVP of sales for Red Bull North America, as its new CEO in tandem with the announcement of its U.S. debut on ecommerce platforms like GTFO, It’s Vegan, Vejii, and Hungry Harvest, as well in foodservice. The company plans to debut in brick and mortar U.S. retailers next year. Launching online helped Future Farm “learn a little bit more about the U.S. market,” Ruberti said, with the company’s “number one objective” in its first year in the U.S. being raising consumer awareness.

“At the end of the day, we want to reach the meat lovers, we want to give an option for those consumers to substitute once or twice a week, animal protein to plant-based protein,” Ruberti said. “In order to do that we have to run in parallel and through the conventional and natural [channels].

Ruberti said the new funding will be deployed to increase marketing and expand the company’s production facility in Brazil, progressing its “True Texture Technology” to improve the look, texture and flavor of its products. The capital will also support new innovations, including plant-based chicken and tuna products along with sustainable sugarcane-based packaging set to debut in the second quarter of 2022, and a line of oatmilk coming in Q4 2022. With its wide-reaching portfolio, Future Farm hopes to be consumers’ “go-to solution” for plant-based food, Ruberti said.

While investment in the alt-meat space continues, some larger players like Beyond Meat and Maple Leaf, the parent company of Field Roast and Lightlife, have reported softening sales. The challenges in the space, however, present an opportunity for adjustment and evolution, Ruberti noted, particularly in making prices more accessible to a wider group of consumers.

“I think that we as a company, we as a category, have to start to make some adjustments,” he said. “In the beginning, you’re always going to explore your growth, but afterwards, we have to do some kind of adjustment. I think this is the phase right now. I think this bump is normal to have, but still the opportunity is huge in plant-based meat.”

AKUA Closes $3.2 Million Round to Support Kelp Burger Launch

Kelp-based food brand AKUA has brought in $3.2 million in new funding to support the retail expansion of its recently launched Kelp Burger and development of new alt-meat innovations.

The round was led by Vibrant Ventures, with participation from Pegasus Sustainable Finance, Halogen Ventures, Fifth Down Capital, Alumni Ventures Group, New England Patriots coach Jerod Mayo, Philosophy founder Cristina Carlino, SmartyPants CEO Courtney Nichols Gould and Sir Kensington’s co-founder Brandon Child. The funding brings its total capital raised to $5.4 million since its founding in 2017, following an equity crowdfunding campaign on Republic earlier this year.

AKUA was founded by CEO Courtney Boyd Myers, initially launching with a line of ocean-farmed Kelp Jerky before expanding to kelp-based pasta and most recently meat alternatives.

The company will use the funding to scale research and development of future alt-meat innovations, with Kelp Burger Ground Meat and Kelp Crab Cakes slated as the next products in its pipeline. AKUA will also grow its team and scale its sales and marketing efforts as it launches the Kelp Burger in retail, beginning in 30 locations in New York City before expanding to Los Angeles and San Francisco. The brand will focus on “coastal, ocean-loving markets,” Myers said.

“We are certainly riding the wave for the overall demand for more climate-friendly, plant-based foods,” she said. “We’ve had Beyond and Impossible for a while now, and in response, consumers are seeking cleaner and healthier options without sacrificing on deliciousness.”

Shiru Secures $17 Million

Shiru, a biotech company that uses precision biofermentation to create novel plant-based ingredients, late last month closed a $17 million Series A funding round. The company aims to launch its first plant-based ingredients in 2022, with plans to double its 22-person team and move into a new headquarters in Alameda, California next year.

S2G Ventures led the round, joined by Lux Capital, CPT Capital, Y Combinator and Emles Venture Partners, bringing the California-based company’s total funding raised to $20 million in the two years since its launch. S2G Ventures managing director Chuck Templeton has joined Shiru’s board as part of the deal.

Shiru, founded in 2019, reverse-engineers popular ingredients to replicate animal protein qualities like taste, texture and binding abilities. Its ingredients can be used in products like burgers, yogurt, sauces and baked goods, according to the company.

“The global food industry is well aware of the voracious demand among consumers for sustainable food, as well as the sector’s immense power to help solve our climate crisis,” Shiru CEO and founder Dr. Jasmin Hume said in a press release. “Shiru’s goal is to make it simple and cost-effective for every food company, from multinational conglomerates to innovative startups, to do the right thing for people and the planet.”

Aqua Cultured Nets $2.1 Million

Cell-cultured seafood company Aqua Cultured late last month landed $2.1 million in pre-seed funding as it looks to accelerate its research and development to commercialize its suite of alt- seafood products.

Investors in the round included Supply Change Capital, Aera VC, Sustainable Food Ventures, Hanfield Venture Partners, Lifely VC, Conscience VC, Kingfisher Capital and Big Idea Ventures. Gonzalo Ramirez Martiarena, former CEO of Louis Dreyfus Company and founder and CEO of Swiss Pampa, also participated.

The funding will support the launch of its alt-seafood products including tuna, whitefish, popcorn shrimp, calamari and scallops, produced through novel protein fermentation, in grocery and foodservice, pending regulatory approval for the sale of cell-based protein in the U.S. The company has also expanded its team, recently adding Bob Schultz as lead scientist, joining from NUGGS maker Simulate, where he was lead food engineer and product lead.

“Interest at this stage has frankly exceeded our capacity to bring in partners, leading to an oversubscribed round, but it’s left us in a good position for future investment and very optimistic about our approach to delivering more sustainable protein,” Aqua Cultured CEO Anne Palermo said in a press release.