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The Spoon

Daily news and analysis about the food tech revolution

Funding

Prime Roots Raises $30M Series B for Deli Meat Made With Koji Mycelium

The average supermarket deli is a sad carnival of sulfites, nitrates, and preservatives that go bump in your belly. There have been a handful of upstarts in the plant-based food space attempting to create a healthy alternative to sliced cotto salami or chunks of smoked roast beef. One Berkeley-based company believes it has a healthy, tasty solution.

Prime Roots, producer of deli-style meat made from koji mycelium, announced $30 million in Series B funding this month from True Ventures, Pangaea Ventures, Prosus Ventures, Top Tier Capital, Diamond Edge Ventures, bringing their total funding to $50 million. The fresh funding will enable Prime Roots to scale and expand to deli counters and restaurants. The company’s alternative deli product currently is available primarily in the San Francisco Bay area.

Growing up with family in the food industry, Prime Roots founder and CEO Kimberlie Le knew that the focus had to be a multi-barreled approach: taste was a must; nutrition was also a consideration, and sustainability also was vital.

“Because I come from a food background, I really wanted to emphasize taste,” Le told The Spoon in a recent interview. “We wanted to make sure the products taste good first and foremost. When we started six years ago, we were also thinking about really the nutrition and the cleanliness of the products. At the time, legacy brands had long ingredient lists and a lot of unpronounceable ingredients. I really wanted to fix that because it wasn’t anything that my mom, who’s a chef, would want to serve in her restaurants or at home. And so really took it upon myself to find a solution that really met the consumer where they are and really solved a personal problem for conscience eaters.”

Prime Roots approaches the deli case with the identical microscopic texture of meat, along with its umami taste made from plants. Experienced chefs helped develop the most popular deli products-including cracked pepper turkey, black forest ham, hickory bacon, salami, and pepperoni to emulate the savory, meaty taste, and texture that consumers demand for meat substitutes. According to the company, Prime Roots’ turkey and ham have no nitrates, preservatives, cholesterol, soy, wheat and are lower in sodium than the leading brands.

Koji is a strain of a fungus used for various culinary purposes, including the production of alcoholic beverages like sake or invaluable condiments like miso and mirin. In the case of creating deli meats, koji ignites the fermentation process when added to other base ingredients. Other companies such as Meati and Aqua Culture Foods use koji in their production of alternative proteins.

Le said that as part of her due diligence, she toured a number of delis across the country including New York, the center for all things corned beef and pastrami. The goal was to see how receptive these landmark eateries would be to a new product.

“When we were working on the concept, the deli concept,” Le recalled, “The first thing we did when we had initial prototypes was go to New York, which is really deli mecca and had prototypes which we would take into some of the most iconic delis and say, ‘Hey, try this’ to see how open and receptive these deli folks were and how the deli culture would be receptive to a plant-based product.”

 “Surprisingly, we didn’t get kicked out of a single place, and everyone was super excited to put the meats on their slicer. They were wowed by the texture, the slicing capabilities, and were just very open and excited.”

Israel’s Profuse Technology Raises $2.5M for Technology That Lowers Cost of Cultured Meat

As the world awaits the arrival of cultured meat, manufacturers and their suppliers strategize to cope with the realities of this potentially mammoth market. Infrastructure and product scaling for growth remain a challenge from the supply side. Still, concerns over the pricing of lab-grown meat, poultry, and seafood might be the most significant roadblock to consumer acceptance.

Israeli-based Profuse Technology believes it has a solution to bring manufacturing costs down to a point where a pound of cultured beef could achieve price parity with meat from a live animal. A step forward, the company has announced the completion of a $2.5 million seed funding round (and a total of $3.75m since its establishment). The round is led by New York-based investment firm Green Circle and existing shareholders – OurCrowd, Tnuva, and Tempo. Other new investors include Siddhi Capital, a leader in investments in cultivated meat, and Kayma, the investment arm of De-Levie, a meat industry specialist.

According to the announcement, the company will use the funds to collaborate with cultivated meat producers, obtain FDA regulatory approval, and expand the research and development team and its laboratories. The funds will also position the company to source significant capital raising at the end of the second quarter of 2023 to commercialize its customer collaborations.

Profuse’s solution is based on what it calls “a cocktail” that is added during the period when a harvested animal stem cell begins its proliferation process. As founder and CTO Dr. Tamar Eigler-Hirsh told The Spoon: “You would start with a biopsy, and it could be directly from the muscle tissue or an embryonic stem cell harvested from an animal. The cultivated meat companies would take these cells, bank the most successful ones, and optimize them. They would grow them in bioreactors and expand and expand and proliferate these cells until they have hundreds of millions of cells per milliliter. And then, at some point, they have to differentiate the cells to become muscle tissue or muscle fibers. This is where our media supplement comes in.”

“What we’ve basically found a way was to target this natural biological mechanism of regeneration by understanding the biological pathway that that that’s responsible for that,” Dr. Eigler-Hirsh continues. “There’s one protocol to make muscle, and everybody follows it, and it’s very inefficient. Right now, we’re hearing numbers being reported about between 10% to 30% efficiency in converting stem cells into muscle. And using our technology, we can bump that number up from 30% well to over 90% efficiency in conversion of stem cell to muscle.”

Greater efficiency yields more muscle which in turn leads to cultured meat. The math is simple: a more significant and efficient supply can bring down manufacturing costs, which can be passed on to the consumer.

Profuse founder and CEO Guy Nevo Michrowski goes into further detail on the issue of price parity. . First, you won’t need as many cells to start with because your efficiency of using the cells will be 95%. So instead of going for 30 days, you’re going for only 25 days. And most important, the most expensive days are being saved. So, in the last ten days, where over 85% to 90% of the median cost is consumed, those days are cut by half because you don’t need as many cells. And then also, the differentiation and fusion maturation phase of creating them is now reduced to two days instead of ten. Your overall process is only 27 days versus 40 days, which means your factory can produce 33% more yearly.”

Using technology developed at the Weitzman Institute, the company started in 2021. In 2022 it began collaborating with cultivated meat companies and others who potentially would be our distribution partners. Michrowski said that Profuse is working with the major players in the cultured meat and poultry space” And I would say that of the ten leading companies worldwide, we are working with the vast majority together “to demonstrate and quantify the effects of our cocktail on their specific production environment. We operate with different customers to demonstrate our value in different viable development environments and methods.”

FloWaste Raises a $1.1M Pre-Seed Round To Reduce Food Waste With Machine Learning

According to the Environmental Protection Agency, more than 85% of greenhouse gas emissions from landfilled food waste can be attributed to missteps that occur before the food ever reaches a consumer’s plate—from production to processing to distribution. FloWaste, an Indiana-based startup, is addressing food system inefficiency at the processing stage using a proprietary machine learning system.

FloWaste announced today that it has raised a $1.1 pre-seed funding round, which it will use to scale up and improve its technology. Last week, The Spoon got on Zoom with company founder and CEO Rian Mc Donnell to find out how FloWaste can help food producers send less food to landfills.

Mc Donnell had the idea for FloWaste while studying mechanical and manufacturing engineering at Trinity College Dublin. “I gravitated toward the topic of food waste because by that point, I knew that whatever I did, my life was going to be sustainability-focused,” says Mc Donnell.

Here’s how FloWaste works: Customers identify 20 foods that they’d like the system to track, and the team trains their machine learning system to recognize those foods. Then the team installs cameras above customers’ workstations, production lines, and trash cans. The cameras monitor the food production process, automatically classifying food items and quantifying how much gets thrown away.

Flowaste Animation

Video: FloWaste food identification and qualification. Source: FloWaste

“We gather a ton of data,” says Mc Donnell. “And we can chop and change that data based on ingredient usage, yield, shift performance, or daily performance. We present those insights to the management, and then they can make procedural changes.”

The technology can be used in both the industrial and the commercial food sectors. One of FloWaste’s current customers, a European protein producer, is using the system to monitor waste on a beef production line. “There’s this huge financial return because proteins are expensive,” says Mc Donnell, “but also this huge environmental return because any increase in yield means that you’re effectively killing less cows in the long term.”

According to Mc Donnell, the task of training the machine learning system to recognize different foods has been time-consuming. But he hopes that as the system builds knowledge, it’ll become easier and easier to expand its use. “If we go in with someone and they’re doing fries, it means the next time we go and search for fries, we’ve already got a head start,” he says. “We’re slowly getting more and more robots to the point where eventually we’ll be able to just do a general use case of food as a whole.”

This pre-seed funding round will help FloWaste to build up scale with its technology: The company has signed agreements to launch the system at over 100 locations with its pilot customers in the next nine months. The funding will also help the team contend with the challenges of creating a hardware system from scratch using off-the-shelf cameras. In the near future, Mc Donnell is planning to bring on a full-time IoT engineer to make the system simpler and more reliable.

FloWaste is participating in the current cohort of Europe’s Rockstart accelerator-VC. The company has also received funding from U.S. venture funds, including Underdog Labs and Flywheel Fund.

In the longer term, the team hopes to expand through new partnerships. “We’re working on installing in cafeteria kitchens and doing post-consumer analytics for customers who want that,” says Mc Donnell. “And we’re looking at quick-service restaurants because they have such an emphasis on optimizing their processes and their yield of food in the kitchen.”

Ultimately, the company is on a mission to help food producers discover how more environmentally friendly processes can also boost margins. “The best way to see a sustainability benefit is to tie it to the financials of business,” says Mc Donnell, “and actually teach businesses how they can be making more money by being more sustainable.”

Alt. Protein Round-Up: Smoked Salmon, Funding Rounds, and Brave Robot’s Cake Mix

Alternative protein news has been dropping in faster than fall leaves, and so we’ve gathered some of this week’s top stories, including Revo Foods’ product launch, Aquacultured and Daring Foods’ funding rounds, and Brave Robot’s new cake mix.

Revo Foods launches plant-based salmon in Austrian grocery stores

This week, plant-based seafood startup Revo Foods launched its alternative salmon product in the Austrian supermarket chain Billa Plus. The product now available on retailer shelves is Revo’s plant-based smoked salmon, made from a base of pea protein and algae oil. Additionally, Revo Foods recently appeared on the Austrian show “2 Minuten 2 Millionen” (similar to Shark Tank), where the company garnered interest from potential investors. In 2022, the company has plans to launch plant-based tuna, smoked salmon spread, and sashimi products.

Aquacultured raises $2.1 million in oversubscribed seed round

Alt-seafood startup Aqua Cultured has raised $2.1 million in pre-seed funding. Unlike many other alt-seafood startups using a straight plant-based or cell-cultured approach, Aqua Cultured uses microbial fermentation techniques to create whole-muscle cut seafood alternatives. The company has developed formulas for tuna, whitefish, squid, and shrimp that leverage its novel fungi as the primary ingredient. Investors include Supply Change Capital, Aera VC, Sustainable Food Ventures, Hanfield Venture Partners, Lifely VC, Conscience VC, Kingfisher Capital, Big Idea Ventures. $2.1 million, a nice pre-seed raise, is even more impressive considering the company only started last month.

Brave Robot releases cake mix

Brave Robot, the first consumer products spinout of precision fermentation platform company Perfect Day, unveiled a new product this week, the “Climate Hero Super Cake.” The yellow cake mix uses the same animal-free milk protein found in the company’s ice cream and replaces the equivalent of three eggs. The mix – which is packaged in a compostable bag – contains other standard ingredients like wheat flour and sugar and requires added oil and water to prepare. One bag of the mix makes two 8-inch round cakes and costs $18.

Daring raises $65 million, launches in Walmart

Daring Foods, a plant-based chicken brand, announced this week that it has closed a Series C round totaling $65 million, and that it will launch its products in Walmart. The round was led by Founders Fund, with D1 Capital Group, and celebrities such as Naomi Osaka, Cameron Newton, Steve Aoki and Chase Coleman participating. This brings the company’s total funding to $120 million. Daring’s plant-based chicken will be available in 3,000 Walmart locations nationwide.

Dawn of the Robocorn? Micro-Fulfillment Robot Specialist Fabric Raises $200M on $1 Billion Valuation

Fabric, a maker of robotic micro-fulfillment solutions for grocery and e-commerce retailers, announced today they have raised $200 million in a Series C funding round. The new funding puts the company’s valuation at $1 billion.

Formerly called Common Sense Robotics, Fabric works with large online grocers and retailers such as Walmart, Instacart, and FreshDirect to build automated micro-fulfillment centers via a mix of fulfillment-as-a-service and hybrid ownership models. The company’s solution involves an intricate blend of robotics, vertically stacked storage of products, and human operators and packers that help package up the final delivery and handoff to delivery drivers.

You can see what a Fabric micro-fulfillment center (MFC) in Tel Aviv looks like in action as it processes an order below:

The World's First 1-hour Delivery Fulfilled by Robots

The funding, which vaults the company into what it describes as a ‘robocorn’ status, is not a surprise given the fast growth of the company and the broader micro-fulfillment market. Interact Analysis forecasts MFC automation and robotics market to grow from $136 million in 2020 to $5.3 billion in 2025. Revenue growth will be fueled by a rapidly growing number of MFC installations in various formats throughout the forecast; Interact expects the the total number of MFCs installed annual to grow from 29 in 2020 to over 2100 new MFCs installed in 2025.

The company plans to use the funds to grow its fulfillment solution in the general merchandise market and build a network of micro-fulfillment centers in cities across the United States. The company’s model relies heavily on building warehouse fulfillment centers that allow grocery retailers to outsource micro-fulfillment to Fabric. Fabric also co-invests and builds distributed fulfillment centers in partnership with larger players such as Instacart and FreshDirect.

That strategy makes Fabric part of a new kind of third-party logistics (3PL) player built around robotics and automation as an enabling platform for their distributed fulfillment networks. While large 3PL companies like XPO Logistics and C.H. Robinson been adopting automation in their warehouses for some time, companies like Fabric, Exotec and Attabotics are building hybrid networks of dark and retail/integrated grocery MFCs architected from the get-go with robotics in mind (rather than a bolt-on or forced integration). As more retailers invest in distribution networks tailored towards a grocery industry with 50%+ e-commerce penetration, next-gen MFC platform companies like these are well-situated to benefit.

“While we use the term ‘robocorn’ a bit tongue in cheek, we see this milestone as a real turning point in the industry, from what was once trepid exploration of micro-fulfillment to total market validation and now rapid expansion,’ said Fabric CEO Elram Goren in the release sent to The Spoon. “We’re thankful to our partners for trusting us to serve them and to our incredible team who will continue moving mountains to make our vision a reality. This is still ‘day one’ for us, and we’re extremely excited about the road ahead as we expand our offering into new markets, drive more efficiencies across the supply chain, and focus on scaling.”

Cometeer’s Flash Frozen Coffee is the Best Thing in My Freezer

Despite my few years of working as a barista in the past, I definitely don’t consider myself a coffee expert of any sort. In fact, I am someone who loves the flavor of a generic-tasting dark roast. What is important to me, however, is the quality of the coffee I’m drinking. I am willing to spend a few extra bucks on coffee from a local roaster, organic coffee beans, or just a quality cup of coffee made with care.

So when I caught wind of a company called Cometeer that not only works with some of the best roasters in the country, but also delivers the brewed end product using flash-frozen pucks, I was more than a little intrigued.

The company’s frozen coffee pucks contain 26 grams of coffee, and are brewed with Cometeer’s proprietary extraction process. To preserve the flavor and aroma, the coffee extract is flash-frozen at negative 321 degrees. The pucks, which are individually packed in aluminum capsules, can be stored in a freezer for up to 18 months.

Cometeer is strict with its verbiage when it comes to describing its product, and for good reason. Its coffee pucks are neither instant coffee nor coffee concentrate, but just flash-frozen, coffee extract. Instant coffees can have that old, and even burnt, flavor. Coffee concentrates, in my opinion, can be too acidic and make me feel jittery. 

The company shipped me five boxes, with each 8-puck box offering a different roast:

  • Bird Rock Coffee Roasters, Timor (decaf)
  • Counter Culture Coffee, Indido (light)
  • Equator, Mocha Java (dark)
  • George Howell Coffee, Alchemy (dark)
  • GGET, Chelbesa (light)

In total, I received 40 coffee pucks, which were kept frozen in the shipping process with dry ice. The instructions had me run hot water over the capsules for 10 seconds, peel the lid back, and plop the frozen coffee puck into a glass mug. I then poured 8 oz of boiling water over the puck and, just like that, I had a fresh cup of hot coffee.

As a dark coffee lover, my favorite roasts were the Mocha Java (dark roast) and Alchemy (medium roast). I loved how convenient and consistent the coffee was. I’ve never figured out the perfect ratio for making french press or pour-over coffee, and I enjoyed not having to measure anything except for the water when making Cometeer’s coffee.

I’ve avoided using a Keurig due to its plastic pods, but appreciated that Comeeter’s 100 percent aluminum capsules are fully recyclable. Keurig pods must be separated apart to be recycled, but the aluminum pods have no plastic and can just be dropped in the recycling bin.

When it comes to price, each puck costs $2, which ends up being cheaper than a coffee from a coffeeshop. However, using the pucks ends up being more expensive than making coffee from grounds. In my opinion, the taste and convenience make it worth the price, and see this product as something handy to keep in the freezer.

Although we have officially entered hot coffee season, the pucks would also be a great way to make a quick iced coffee or iced latte. Once the pucks are melted, they can simply be poured over ice and water, or ice and milk.

My boyfriend, the coffee snob between us, thoroughly enjoyed the light roasts and was soon making two cups of the Cometeer a day. A friend who I offered the Alchemy dark roast thought the flash-frozen coffee was freshly brewed in my kitchen. 

This week, Cometeer raised $35 million in a Series B round of funding, and plans to use the new capital will be used to increase manufacturing capabilities and expand its relationship with roasters. They’ve also dropped the waitlist from its website so now anyone can order a box of coffee pucks, so if you want to try Cometeer, the first box purchased costs $48 ($64 after your first order) for four boxes containing eight capsules and free shipping.

The Week in Food Tech Funding: Culture Biosciences & Tufts Nab Funding as Interest in Scaling Cell Ag Grows

Over the past 12 months, money has poured into cultivated meat startups as venture investors, celebrities, and governments look to get in on what many believe is the next big thing in alternative protein.

However, as the excitement grows, some are taking a harder look at how to scale the production of lab-grown meat to make a dent in the larger animal-based meat market. According to one estimate, the industry will need up to $30 billion invested in cell-based/fermentation production capacity if the alternative protein market hits just 11% of total meat consumption by 2035 and significantly more if consumer adoption exceeds expectations.

Much of that $30 billion will be directed to capital investment in building out long-term production capacity. However, before we get there, the industry first needs to invest in organizations building the necessary technology and production platforms to enable scale-up. This week saw two significant investments intended for just that: Culture Biosciences ($80 million) and Tufts University & partners ($10 million).

Culture Biosciences helps companies developing future food products with its bioreactor-as-a-service platform. The company introduced its first product a couple of years ago, a cloud-connected benchtop bioreactor service for cell-culture and bioprocess development. With their new round of funding, Culture looks to move beyond the bench with cloud-connected 5L and 250L bioreactors-as-a-service that will help firms optimize for pilot scale bio-manufacturing.

The second investment isn’t a traditional venture investment, but the $10 million USDA funding award to Tufts University for a cultured protein center of excellence is a vital investment nonetheless. In partnership with others, Tufts will lead an Institute for Cellular Agriculture to develop foundational technologies and processes to enable the cultivated meat industry to progress towards scaled production. The foundational work done by this organization will include everything from research on next-generation cell-culture medium to the development of education and leadership programs for the cultivated meat industry.

As companies try to take cultivated meat from the lab to the manufacturing plant, some question if cellular agriculture will ever be able to scale upwards cost-effectively and safely enough to justify all the investment. While we won’t know the answer to this question for a few years, it’s an encouraging sign that investments are being made to address the next big challenge in cellular agriculture.

And now, the rest of this week’s funding news:

Food Supply Chain

TrusTrace – $6 Million: TrusTrace, a Sweden-based startup building food supply chain traceability software solutions, has raised a $6 million Series A funding round. TrusTrace uses blockchain, AI, and bots to track products as they navigate their way through the supply chain. The company claims to have 8 thousand suppliers and 250 thousand products on the platform. My guess is TrusTrace and other traceability platform players are getting lots of inbound inquiries as everyone from ingredient and component suppliers, manufacturers, and retailers are trying to figure out how to work through the great 2021 supply chain disequilibrium.

Plant-Based Food

Grounded Foods – $2.5 Million: Plant-based cheese maker Grounded Foods has announced a $2.5 million raise. The company, founded by the husband and wife team of Shaun Quade and Veronica Fil, makes cheese products with hemp seeds and cauliflower. Grounded is already in 160 different retail locations today and plans to use the funds to expand further in the US and to set up for expansion into Europe.

Ag Tech

Kuva Space – €4.2M ($4.9M): Kuva Space, a provider of realtime agricultural data using space-borne hyperspectral camera technology, has raised $4.9 million. The company plans on using the funding to launch a constellation of six-unit nano-satellites to gather imagery in the 400 to 1,100 nanometer band. The company provides data that helps farmers optimize fertilizer and irrigation needs, optimal harvesting times, and early-stage pest or plant disease detection. With its second generation satellites, the company plans to expand its carbon monitoring capabilities.

Food Waste

Orbisk – €2.4M: Orbisk, which provides professional kitchens with automated analysis of food usage and associated waste flow using machine vision and AI, has received a €2.4 million grant from the European Commission’s European Innovation Council (EIC). The data from Orbisk’s analysis allows customers to adapt processes and purchasing to better manage and reduce food waste. Orbisk won the EIC funding with a pitch for its ‘Binspector’ project, under which the company will invest in dynamic AI models to increase accuracy and rapid adaptation in international menus, as well as further development of its food management algorithms.

Fish Tech

OptoScale – $4.1m (£3m): Optoscale, which makes machine vision and sensor technologies real-time monitoring of fish farm stock, has raised £3 million led by SWEN Capital Partners. The Norway-based company says it can analyze up to 200,000 fish per day using its technology, which compares with 50 to 100 fish using traditional analysis methods. Optoscale, which currently operates in Norway, Canada, and Scotland, plans to use the money to expand operations to Australia, Chile, and Iceland.

Restaurant Tech

ResQ – $39 Million: Well that was fast. After raising $7.5 million in a June seed funding round, ResQ, which provides a software platform for managing restaurant repair and maintenance tasks, has raised a $39 million Series A. Through their platform, restaurants can request, manage, and pay for a service, as well as manage the documents for these things. ResQ also connects restaurants with a network of contractors able to perform those services. The company’s list of available services includes HVAC, refrigeration, electrical, janitorial, plumbing, pest control, grease trap cleaning, preventative maintenance, and most anything else needed to keep a restaurant kitchen up and running. Since its seed round, the company has said its customer base has grown from seven states to 36 in the US. They plan to use the funding to grow their team by 400%.

C3 – $10 Million: Virtual restaurant/host kitchen platform company C3 has raised another $10 million in strategic funding from Swiss private capital firm, Lurra Capital, just a few months after it had raised a $80 million Series B. C3 (short for Creating Culinary Communities), works with kitchen operators (host kitchens) to fulfill orders for virtual restaurant brands. As of mid-year, the company operated about 40 virtual restaurant brands. The company plans to open 1,000 virtual brand locations by year’s end and has plans to open 12,000 globally by 2023.

Food Robots

Future Acres – $1.7 Million: Farm robotics startup Future Acres has raised $1.7 million via equity crowdfunding on Seedinvest. The company makes a self-driving robot called Carry that utilizes GPS and computer vision to navigate around the field and haul up to 500 pounds of produce. The company, which has raised a little over $400 thousand in pre-seed funding, plans to use the funds for product development, payroll, marketing and operations.

Supplant is Expanding its Fiber-Based Sugar Throughout the US Following $18M Raise

Americans have a problem: we consume way too much sugar (about 57 pounds a year on average) and not nearly enough fiber (only about 5 percent of the population ingests enough). The Supplant Company aims to offer a solution to this issue with its sugar made from the fibers of agricultural side streams like corn, wheat, and rice.

At the start of this week, The Supplant Company announced that it has raised a $18 million Series A funding round. Celebrity investors like Ayesha Curry (actress) and Chris Paul (Basketball player) joined this round, along with Manta Ray, EQT, Khosla, Felicis, Coatue, Y Combinator, Agfunder, and more. This brings the company’s total funding to $27 million.

I spoke with Dr. Tom Simmons, the CEO and founder of The Supplant Company, earlier this week to discuss the latest funding round and what the next steps will be for the company. When asked what the next year will look like for the company, Simmons said the “…we’re really sort of focused on driving further rollouts of the product, so more products, and more places more consumers having them. And of course the scale-up size. There’s a whole load of technical work going on behind the scenes by all the scientists to ramp up production and use different feedstocks as well.”

The Supplant Company launched in the U.S. in June 2021 in partnership with Chef Thomas Keller and his restaurants in California and New York. The company’s sugar is currently still being used in the dessert dishes at these restaurant locations. Now, Supplant’s sugar is being used at You’re a Cookie (Illinois), Cookie Fix (Alabama), Sweet Republic (Arizona), Bakeology (California), and RiverSea (Virginia).

The Supplant Company is both business-to-business (B2B) and business-to-consumer (B2C), although it has primarily focused on business partnerships since its launch. I asked Simmons when I could buy a bag of Supplant’s sugar in say, my local Whole Foods, and he said, “We’re not planning to sell sugar anytime soon directly to consumers, maybe at some point in the future. We don’t think it’s where the big business opportunity nor the big social opportunity is.” Americans consume a shocking average of 71 grams of sugar per day, and Simmons sees most of this sugar consumption mostly stemming from foods, like cookies, cake, ice cream, and other sweets, that the consumers purchase outside of the home.

A few other companies in the food tech space are attempting to tackle the issue of individuals consuming too much added sugars. DouxMatok uses sugar reduction technology for its Incredo Sugar product, and launched its sugar-reduced products in April of this year. Better Juice uses enzymatic technology to reduce the amount of sugar in natural juices. Siggi’s, a company known for its Icelandic skyr cultured dairy products, released what it called a “Palate Training Kit” to help consumers reduce their sugar intake.

As The Supplant Company continues to rollout its sugar in the U.S., it will also work on developing new products. Simmons mentioned that the company will release new products in the not-so-distant future, including some that are not sugar.

Update: This article previously stated that The Supplant Company had raised $25 million USD in its most recent funding round, but the correct amount it has been updated to reflect is $18 million.

The Week in Food Tech Funding: Perfect Day’s Big Raise & Gorillas Quits Monkeying Around

The week’s big news is a $350 million Series D raise by precision fermentation unicorn Perfect Day. There’s a whole lot packed into this announcement, so let’s get right to it:

First, the funding raises Perfect Day’s total to $750 million and sets the company on track for a possible IPO. The timing couldn’t be better, as tech startups continue to see rising valuations and the market is hungry for more food tech (see Oatly). And while Ginkgo Bioworks was the first company with significant precision fermentation (PF) capabilities to IPO, Perfect Day will be the first true future food PF pure-play to go public.

As part of the news, the company announced an expansion of its consumer products company, the Urgent Company (TUC). TUC, Perfect Day’s wholly-owned CPG company behind the Brave Robot ice cream brand, will add new “household staples” to its portfolio with Modern Kitchen, the second consumer brand under the TUC umbrella. Modern Kitchen’s first product will be dairy-free cream cheese, which the company will make with its animal-identical whey. As part of the announcement, TUC revealed Brave Robot is now in 5 thousand stores and that they’ve moved a million pints of ice cream.

Speaking of Brave Robot, it always struck me as a risky choice for a product name. Sure it stands out, but Brave Robot also doesn’t exactly make one think of tasty ice cream, which I think is the biggest challenge for a product that also wants to somehow communicate to the consumer it is made differently from traditional ice cream. With Modern Kitchen, I have to wonder if Perfect Day went purposefully conservative, choosing a brand this time around that doesn’t create extra work for itself.

Perfect Day also announced their third line of business (the other two being ingredient innovation and consumer products) in enterprise biology scale-up services. This move is a formalization of its enterprise biology efforts that started with the company’s 2020 acquisition of bioprocess scale-up facility SBF. With its new business line, Perfect Day hopes to help other food companies with technology transfer and scale-up consulting services.

“We first got into the ingredient business because food companies, big and small, were eager to work with the ingredients we had successfully scaled,” said Perumal Gandhi, Perfect Day co-founder, in the news release. “Today, something analogous is happening on the technology side. There are innovators all over the world with ideas and ambitions similar to our animal-free milk protein, but need help getting there. We’re standing up business models to be able to share our demonstrated capabilities in a way that maximizes upsides for all, yet ensures that Perfect Day remains at the forefront of our new industry.”

What struck me about the series of announcements is they illustrate how Perfect Day has matured in both its business and how it talks about itself. The addition of business services not only adds a new revenue line to the company, but it is a strategically savvy move that will set Perfect Day up with a pipeline of long-term IP licensing and ingredient supplier opportunities.

On the company messaging front, it wasn’t all that long ago that Perfect Day struggled to describe its technology and the animal-free dairy products that resulted from it. That’s changed, however, as this announcement brims with confidence. The company has clearly figured out how to communicate the benefits of its product while also giving just the right touch of details around the technology behind it all.

And now, the rest of this week’s funding news:

Cultured Meat

New Age Meats – $25 Million: California-based New Age Meats has raised a $25 million series A to help fund product development and ramp up production of its pork sausage products. Founded in 2018, the company hopes to bring its products to market next year as it uses the funds to double its workforce and build a first pilot production plant.

Ghost Kitchens/Virtual Restaurants

All Day Kitchens – $65 Million: Ghost kitchen startup All Day Kitchens announced this last week they’ve raised a $65 million series D to expand its distributed network of satellite kitchens. The company, which launched in 2018, focuses on helping small independent restaurants expand their reach via a unique model; Unlike traditional ghost kitchens with often treat restaurants like a landlord, All Day Kitchens helps to launch its new restaurant partners across its entire network of kitchens in a given metro area.

Plant-Based

Ripple – $60 Million: Pea-protein alt-dairy specialist Ripple has raised a $60 million Series E. Ripple, which basically is to pea milk what Oatly is to oat dairy products, has continued to grow its products ever since its 2015 debut and plans to use the funding to expand into even more new products and markets. While not all pea-protein products from Ripple have succeeded – see our review of the pretty-bad and now discontinued Ripple yogurt here – I’m intrigued to see what new products they bring to market (well, of course, except maybe yogurt).

Food Delivery

Avo – $45 Million: Israel-based food delivery startup has raised a $45 million Series B. Avo, which offers white-label food and consumer products delivery to landlords and employers, says it plans to use the funding to expand into 10 new metro markets over the next year. From the release: Avo’s mission is to deliver everything from groceries and alcohol to electronics and personal care items to millions of people daily. The company’s customizable amenity platform enables residential and commercial customers to obtain everyday items, the same day, without any minimum order size or incurring any delivery fees of any kind. The platform also excludes a tipping fee, as Avo has a full-time salaried team. Stemming from the COVID-19 pandemic, Avo is currently adding a new major market every month – a dramatic increase in growth that has helped drive revenue 1000% over the past two years.

HUNGRY – $21 Million: Chef-powered catering delivery company HUNGRY has raised a $21 million Series C from a mix of athletes, reality TV talent show singers, and the usual mix of corporate venture capital funds. The company, which lets companies cater food from chefs, works with a variety of high-profile chefs such as Tom Colicchi and has claimed it allows chefs to earn up to half a million per year on the HUNGRY platform.

Swiggy – Half a $Bil?: Indian food delivery startup Swiggy is reportedly in talks to raise a $500-$600 million funding round that would value the company at one Oatly ($10 billion). Invesco will likely lead, while others like Softbank will also throw in capital.

10 Minutes Grocery Delivery

Gorillas – $950 Million: Gorillas, the fast-growing, fast-grocery delivery business has raised an eye-popping $950 billion in funding. The news comes even as the company has reportedly decided to stop monkeying around with a US expansion, at least for the time being. According to Business Insider Germany, Gorillas has decided to scale back its US expansion plans outside of New York City and is laying off employees beyond the Big Apple. This funding comes in large part from Delivery Hero as Gorillas continues expansion in as Germany, the United Kingdom, Spain, and France.

Plant-Based Fish

Hooked – €3.8 Million: Sweden’s Hooked has raised €3.8 Million for its plant-based fish products. Like many new alt-protein funding rounds nowadays, Hooked’s with news of a celebrity backer, Swedish music star Danny Saucedo. The company launched its plant-based tuna brand Toonish into retail last month in the Swedish market.

Food Robots

Piestro – $4.7 Million: Piestro, a maker of robotic pizza-making kiosks, has raised just under $4.7 million via equity crowdfunding. The campaign, which the Wavemaker Labs portfolio company ran using StartEngine, will be used to fund the second-generation Piestro, which will be the first pizza robot from the company to be deployed in consumer-facing locations and take payments. The company hopes to have its new prototype deployed by December of this year. Wavemaker Labs, which describes itself as a “robotics and automation corporate innovation studio”, has shown a preference for using platforms such as StartEngine and SeedInvest to raise funds with its portfolio companies like Piestro, Miso Robotics, Future Acres and Bobacino.

The Week in Food Tech Funding: Double (Alt) Cheese Funding & Big Money for Misfits

Fall is upon us in the Pacific Northwest, and alongside autumn colors and windy weather is lots and lots of food tech venture capital. This week’s funding news includes not one but two alt-mozzarella startups, a monster round for ugly produce online retailer Misfits Market, and three pieces of food robot funding news.

On to it:

Plant-Based Food

Sophie’s Kitchen – $5.6 Million: Sophie’s Kitchen has raised $5.6 million to fund the growth of its plant-based seafood lineup of products. The company, founded in 2010, offers a line of alt-seafood products, including crab cakes, shrimp, salmon, and tuna. Billy Goat Brands led the round, a Canadian venture fund focused on sustainability. Sophie’s Kitchen products can currently be found at Walmart, Sprouts, and Wegmans. The funding continues the momentum for the plant-based seafood category, which saw $116 million in funding in the first half of 2021 (compared to $26 million for the whole of 2020).

Growthwell – $22 Million: Singapore-based plant-based seafood and chicken maker Growthwell has raised a $22 million Series A led by Creadev. The company, which raised $8 million last year, “owns a portfolio of alternative protein companies aimed at Southeast Asian consumers, including OKK (plant-based meat), Su Xian Zi (vegan mutton), and gomama (ready to eat dishes made from plants).” They also sell a chickpea protein powder called ChickP for use in meat and dairy alternatives.

NUMU Food Group: Plant-based cheese startup NUMU has raised early in September. The amount of the funding was undisclosed. The company makes plant-based mozzarella from potato starch, soybeans, and coconut oil. Started a former DJ named Gunars Elmuts, NUMU sells its cheese to food service providers in shreds and blocks.

Precision Fermentation

Formo – $50 Million: Berlin-based Formo announced it had raised $50 million in Series A funding. The investment in the maker of animal-free cheese was led by EQT Ventures, with Elevat3 Capital and Lowercarbon Capital. Formo uses a precision fermentation process to make animal-free dairy cheese with animal identical proteins. The company plans to use the funding to “With the resulting increase in R&D capacity, Formo intends to expand its product portfolio to represent a wide variety of European dairy specialties such as mozzarella and ricotta, with techniques designed in collaboration with artisan cheesemakers.“

Food Robots

Pudu Robotics – $78 Million: China-based Pudu Robotics announced this week it had raised a $78 million C2 found of financing, matching the same dollar amount for its May C1 funding round. In total, the company has raised $156 million in Series C financing. The company makes a few different types of bots, including a front-of-house bot called the Bellabot, a cleaning bot, and two models of delivery bots.

Keenon Robotics – $200 Million: Another China-based robotics startup Keenon Robotics has raised an impressive round with its $200 million Series D. Its round was led by Softbank. Like Pudu Robotics, Keenon also makes food delivery and front-of-house food service bots and robots for hospitals.

Daxbot – $211 Thousand Crowdfunding: This week, Daxbot, a maker of sidewalk food delivery robots, launched its equity crowdfunding raise. Like many food robot startups, Daxbot is using StartEngine for its raise, and the company has already (as of this writing) raised $211 thousand from 136 investors. Today the company’s robots are being used for food delivery in Philomath, Oregon.

Online Grocery

Misfits Market – $225M Series C-1: Online grocer Misfits Market announced it had raised almost a quarter billion in new funding via a Series C-1 round. It’s a quick turnaround for more capital for the sustainability-focused online grocer that works with farmers and food producers to save ugly produce and food that otherwise would go into the compost bin; the company raised a $200 million Series C in April. Misfits Market joins fellow ugly food retailer Imperfect Foods as one of the companies that have tapped investor interest in the food waste space.

Smart Vending

Foodles – €31 million: Smart corporate food vending/catering startup Foodles has raised a €31 million Series B round from InfraVia Growth and Bpifrance via its Large Venture fund, and follow on rounds from existing investors, Creadev, DN Capital, and Adelie. The French company offers connected fridges, which it calls canteens that it supplies with food. According to the company, each fridge can provide food to up to 59 employees. The company hopes to disrupt a European contract catering market worth 240 billion euros.

Food Supply Chain Software

Grubmarket – $120 Million: Grubmarket, a provider of software and services to enable food producers, has raised a $120 million Series E round. The company’s software enables food producers and distributors to manage inventory, pricing, customer relations, and other company-related operations. The company’s announced hinted in the announcement that they will likely expand from just software into robotics in the future: “GrubMarket will likely also start to explore connected hardware to help those customers, too: robotics for picking and moving items” related to those activities managed by its supply chain oriented software.

Restaurant Tech

SpotOn – $300 Million: Payments software startup SpotOn announced this week it has raised a $300 million Series E to help finance the acquisition of Appetize, a mobile and digital payments startup focused on sports and entertainment venues, amusement parks, and zoos. Mega-VC Andreessen Horowitz led the deal (as they did SpotOn’s last round). A16z’s eagerness to inject more capital into SpotOn probably has a lot to do with the company’s tripling of revenue over the past 18 months. SpotOn, which has traditionally focused on SMBs (the segment of the restaurant space that has been the most aggressive in modernizing its tech stack during the pandemic), will now be able to sell into the enterprise market with the newly acquired Appetize.

Wild Earth Launches Cell-Based Pet Food As It Raises a Fresh $23 Million

Plant-based pet food brand Wild Earth has announced plans to expand its product line into pet food made with cell-based meat. The announcement comes on the heels of a new $23 million funding round from a group of investors that includes Mark Cuban and the star of Vampire Diaries, Paul Wesley.

Led by alternative protein entrepreneur and investor Ryan Bethencourt, Wild Earth has been one of the early leaders in creating pet food from plant-based ingredients. With products like Clean Protein dog food (which uses pea and potato protein) and Superfood Dog Treats With Koji (Koji is a fungi protein used in fermented food in Asia), company sales have grown more than 700% year over year, according to a release sent to The Spoon.

And now, the company plans to use cell-based meat in a new line of products. From the release:

(Wild Earth) has its sights set on adding new products and launching a new initiative into cell-based meat pet food to deepen their market share and gain new customers. Cell-based meat is a lab-grown meat; a sustainable alternative to traditional meat. Cell-based meat is cruelty-free to produce. Cell-based meat is the future of meat, and pet food is leading the revolution!

The company got a boost in 2019 when Bethencourt appeared on Shark Tank and secured a $550 thousand investment from Cuban. Bethencourt, already well-known in the alternative protein space as one of the earliest employees at seminal biotech accelerator IndieBio, became an influential alt-protein evangelist and helped increase Wild Earth’s profile in the market.

Wild Earth is just one of a number of pet food companies eyeing cell-based meat as an ingredient. Startup Because Animals is working on cat food with meat made from mice cells which it plans to have in the market by 2022. Boulder-based Bond Pet Foods has sourced chicken cells from a heritage hen named Inga and plans to roll out pet food using cultured chicken meat in 2023.

And now, we can add cell-based beef and seafood to the list of ingredients coming to the cell-based pet food market. According to the release, Wild Earth plans to have its new lineup of pet food with beef, chicken, and seafood cell-based meat inputs on the market in 2022.

You can see highlights from Bethencourt’s appearance on Shark Tank in the video below:

Mark Cuban Invests In Vegan Dog Food Company Wild Earth

Smoothie Robot Blendid Joins The Equity Crowdfunding Crowd With $2 Million Raise

Blendid, the maker of smoothie-making robots, announced today it had raised $2 million via crowdfunding platform StartEngine. According to the announcement sent to The Spoon, the raise brings the company’s total funding to $20 million raised through venture capital, strategic funding, and crowdfunding. The company raised funds over a four month period from over 1475 individual investors.

From the release:

Blendid is currently focused on growing its location footprint to increase its reach across the United States and perfect its food automation platform. Recently announcing its expansion plans to two new geographic areas, Blendid will use the additional funds to accelerate its expansion into the Southern California and Georgia markets with openings in a variety of venues such as malls, airports, hospitals, universities and retail stores.

The company counts Walmart and Jamba as its customers and, according to company sources, has served over 50 thousand customer orders.

Blendid isn’t the only robotics company to use crowdfunding in recent years. In fact, it seems like food robotics equity crowdfunding space has become downright crowded .

So why the interest in equity crowdfunding? There are a few reasons:

The first reason is the shine of traditional rewards-based crowdfunding has dimmed in recent years after several high-profile failures like the Coolest Cooler. By offering equity in the company, smaller investors feel they have a stake in the company and may be more forgiving than those who came to see rewards-based crowdfunding platforms as merchandise marketplaces.

Second, equity crowdfunding also gives small companies a way to sidestep traditional venture and strategic investors who a) might have higher oversight requirements or b) ask for too much of a stake than a founder(s) is willing to give up. It also opens up an entirely new pool of funding from small investors who have been shut out of the more traditional venture funding ecosystem.

Finally, robotics is a category that resonates with smaller investors. It’s an easy-to-understand space, and the investment thesis undergirding many of the proposals is largely correct: the food space is ripe for more automation and robotics, so why shouldn’t I put some skin in the game.

Long term, I expect the food robotics equity crowdfunding momentum to continue as smaller investors look for places to put their money outside of traditional investment vehicles. How these investments pay off for these investors is another story worth watching.