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The Spoon

Daily news and analysis about the food tech revolution

cellular aquaculture

BlueNalu Nets $20M Series A to Accelerate Development of Cell-based Seafood

BlueNalu, the startup focused on creating seafood directly from fish cells, today announced that it had closed a $20 million in Series A funding. The round was co-led by Stray Dog Capital, CPT Capital, Clear Current Capital, and New Crop Capital. Combined with previous funding raised in 2018, this Series A brings BlueNalu’s war chest up to $24.5 million.

Based in San Diego, BlueNalu was founded two years ago to create a platform to grow a wide variety of seafood — fish, crustaceans, and more — from cell samples in large bioreactors. Since then, the company has been quite busy. Bluenalu hosted a culinary demo of its cell-based yellowtail back in December. A month later, they partnered with Nutreco, one of the world’s largest fish feed companies, to accelerate the scaling of its cultured seafood in order to bring it to market more quickly.

When is that exactly? The company has stated that they hope to start selling their cultured seafood products (maybe starting with yellowtail?) in two to three years. In five years they hope to break ground on their first large-scale production facility. That’s part of what they’ll use their new funding for, according to a press release emailed to The Spoon. BlueNalu will also channel its fresh funds into expanding its team and accelerating its product’s path to market.

With its significant Series A complete, BlueNalu is in an advantageous spot to become a leader in cell-based seafood production. Compared to its competitors, like Wild Type, Finless Foods, and Avant Meats, BlueNalu is working across multiple fronts — legislation, R&D, and supply chain — at a very quick pace. BlueNalu has also unveiled plans to build a 150,000 square foot facility which could produce 18 million pounds of their cell-based seafood per year. If that comes to fruition, it’ll be hard to compete with.

Then again, cellular aquaculture isn’t a zero-sum game. Cultured seafood (or meat, for that matter) isn’t even to market yet, so there are plenty of opportunities for multiple companies to debut their own cell-based fish, shrimp, and more. Plus many startups are focusing on a particular species, so there’s space for everyone to stake their claim.

A rep from BlueNalu told The Spoon that they think this is “the largest A round to be secured in the cell-based food industry.” (Memphis Meats secured a hefty $161 million last month, but that was a Series B.) Twenty mill is nothing to sniff at, but it’s a metaphorical drop in the bucket compared to the ocean of funding that BlueNalu will need to make their goal — scalable, sustainable, affordable cultured seafood — a reality.

BlueNalu Unveils Plan for Facility to Grow Fish, Crustaceans and Mollusks, Starting with Mahi-Mahi

BlueNalu just revealed details about its plan to become the global leader in cellular aquaculture. Yesterday the San Diego-based startup, which grows seafood from cell cultures, dove deeper into its commercialization strategy for its cultured fish and also released schematics of its future large-scale food facilities.

According to a press release from the company, the new facility, which will be “a hybrid between a microbrewery and a conventional food production facility,” will be 150,000 square feet and produce a whopping 18 million pounds of seafood products per year. There, BlueNalu scientists will grow fish cells in large tanks then combine them into a variety of finished seafood products.

And when we say variety, we mean variety. “We’re creating a platform approach that will allow us to do freshwater and saltwater fin fish, and ultimately crustaceans and mollusks too,” Lou Cooperhouse, co-founder and CEO of BlueNalu, told me over the phone. They’ll initially focus on species that are overfished, difficult to farm, or contain high levels of pollutants. Finished products will be sold to restaurants, grocery stores and directly to consumers.

Their first product will be cultured mahi-mahi. According to Cooperhouse, they decided to enter the market with this fish since it’s versatile and especially difficult to farm raise. However, they’ve previously done taste tests with yellowtail amberjack, and Cooperhouse emphasized that they’re focusing more on creating a cellular aquaculture platform — not just one particular species.

It will be a while before we can sample cell-based mahi-mahi. BlueNalu’s roadmap, made up of five phases, is still in phase one: focusing on R&D for its cell-based seafood. They hope to start selling their products in two to three years, then break ground on their first facility (phase five) in five years.

The Holy Grail for any cultured animal tissue company — be it focused on beef or fish — is to make an agnostic platform to grow any type of tissue. But for now, other cellular aquaculture companies are much more heads-down on one type of seafood: shrimp for Shiok Meats, salmon for Wild Type, and tuna for Finless Foods. BlueNalu’s plan for the future is unusually broad — and ambitious.

It’s easy for companies to talk a big talk about what will happen five years down the road. And honestly, BlueNalu’s plans might be a little too aggressive to bring into action in that timeline, especially since cell-based meat and seafood have yet to hit the market. Then again, the company raised a significant $4.5 million only two months after launching publicly. Plus, as seafood prices rise and our waterways become more contaminated, I’m betting the market opportunity for cellular aquaculture products will grow. We’ll see if BlueNalu will be there to feed it.

Avant Meats Develops Cultured Seafood (Fish Maw, Sea Cucumber) for a Chinese Audience

Last week we wrote a think piece about how cultured meat — that is, meat grown outside the animal in a lab setting — will likely debut in Asia. Part of the reasoning behind this is because of all the innovative cellular agriculture startups popping up in the area, targeting local cultural demands and restrictions.

One of said innovative startups is Avant Meats, a new cell-based meat company operating out of Hong Kong. Avant Meats isn’t developing cultured burgers, sausages, steaks, or tuna — but fish maw.

Many Westerners (the author included) have never come across fish maw, or dried swim bladder. Upon first glance it might seem like an odd choice. But there are a few very good reasons why Avant Meats is starting with this particular food item:

First and foremost, it’s easy(er) to make. Unlike a cut of meat like steak, which requires muscle cells, fat cells, and connective tissue, fish maw is made up of only one cell type. That simplicity allows Avant Meats to grow a fish maw from scratch in as little as one and a half months. “The route to scaling up is much simpler,” Avant Meats CEO and co-founder Carrie Chan told me over the phone.

The choice of fish maw was also a strategic nod to Avant Meats’ target demographic: consumers in China and Hong Kong. “Our food culture is very different from the West,” said Chan. Dried fish swim bladder is considered a delicacy in traditional Chinese cuisine, prized for its texture and purported health benefits.

There’s also an environmental aspect at play. Fish maw is in such high demand in China that the two main fish species that are hunted for it — Bahaba and Totoba — are on the brink of extinction. There are even black markets dedicated to the bladders, which can fetch up to HK$1 million ($~127,000) per kilogram. “It’s similar to shark fin,” explained Chan.

Finally, there’s a health and safety consideration. China struggles with food traceability issues. In fact, last year a study from Food Control found that more than half of the fish fillets sold under commercial brands were mislabeled. By growing food in a lab — especially products as rare and coveted as fish maw — consumers can know exactly what they’re getting and where it came from.

Photo: Photo by Duangphorn Wiriya on Unsplash.

As noted in the intro, Avant Meats isn’t the only cell-based meat company targeting Asia as their launch pad. JUST, who is aiming to be the first to bring cultured meat to market, announced recently that the product will likely debut in Asia. In Singapore, Shiok Meats is developing cell-based crustaceans. Part of the reason so many cultured meat companies are looking to Asia is because it has relatively looser regulatory standards, especially in Hong Kong.

Chan was hesitant to speak too much about the regulatory framework in Hong Kong, where Avant Meats is headquartered, but did admit that it’s an ideal place to launch a new food product. “It has a very robust market and lots of disposable income,” she told me.

Though they have a very developed strategy, Avant Meats is a very new startup — even in a field that’s quite new itself. Chan started the company in July of last year, and was recently joined by Dr. Mario Chin, her co-founder and the company’s CSO (and only other employee).

Considering their late start and lean team, Avant Meats likely won’t be part of the first wave of companies selling clean meat. Chan said that they expect to have a commercial product out in three to four years, though they’ll be doing taste tests of their fish maw in Q3 or Q4 of this year. But she believes their strategy to start with a simple, unique product will help them stand out. “We’re starting behind the other guys, so we better find something that’s commercially more pragmatic,” she explained.

Fish maw is just the first stepping stone for the company. Down the road, Avant Meats will expand their lineup, developing more complex seafood products. Chan told me that next they’ll look into making sea cucumber. Their end goal is to make an entire fish filet, likely using some scaffolding to help emulate the texture.

Chan didn’t specify what type of fish they would be tackling. There are a couple cellular aquaculture companies further along in the development process. Finless Foods is developing cell-based bluefin tuna, and Wild Type is growing salmon.

However, both these companies are based in the U.S. Avant Meats’ Hong Kong HQ and strategic product choice could help them stand out in a field that’s getting more exciting — and more crowded — by the day.