Nature’s Fynd, which makes protein from microbes that originated in geothermal springs of Yellowstone National Park, announced today that it has raised a $350 million Series C round of funding. The round was led by SoftBank’s Vision Fund 2, with participcation from new investors including Blackstone Strategic Partners, Balyasny Asset Management, Hillhouse Investment, EDBI, SK Inc. and Hongkou, as well as other existing investors. This brings the total amount raised by Nature’s Fynd to more than $500 million.
The company’s protein is called Fy, and it’s a fermented fungi protein derived from the Fusarium strain flavolapis microbe. Because Fy is grown through fermentation, the cultivation of the protein requires less land, water and energy than traditional agriculture. Fy is a complete protein with 9 essential amino acids, and it can be used to make alternative meat and dairy products. In February of this year, Nature’s Fynd announced its first two Fy-based products: a dairy-free cream cheese and a meatless breakfast patty. The company also makes a dairy-free yogurt that was eaten on camera by Bill Gates (a Nature’s Fynd investor) and Anderson Cooper during a segment on 60 Minutes earlier this year.
Fermentation has been dubbed the third pillar of alternative protein, alongside cell-based and plant-based protein. We have seen a wave of startups using fermentation technology to bring variety of animal-free products to market. Perfect Day and Remilk use fermentation to create dairy proteins. Nourish Ingredients ferments yeast to make plant-based fats. SuperBrewed ferments microbes to create a vegan protein powder than can be used in plant-based cheese and milks. And Better Meat Co. recently launched its own fermentation production facility to create its mycoprotein-based Rhiza ingredient.
All of this activity has also helped attract plenty of funding over the past year and a half. According to data from the Good Food Institute and Pitchbook, fermentation startups received $590 million in funding in 2020. In addition to Nature’s Fynd’s haul announced today, last month Motif Foodworks, which uses microbial engineering and precision fermentation to create novel food ingredients, raised $226 million.
Nature’s Fynd said it will use its new funding to expand its production capacity, add new products to its lineup, and set the stage for its international growth.
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