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Daily news and analysis about the food tech revolution

Temasek

Singaporean Alternative Meat Co. Growthwell Group Raises $8M, Will Develop Chickpea Protein Products

The Growthwell Group, a plant-based protein company based in Singapore, announced today that it had raised $8 million (h/t Deal Street Asia). The investment was led by Singaporean sovereign fund Temasek with participation from DSG Consumer Partners, Insignia Ventures, Genesis Ventures, and others. Growthwell also announced it had made its own investment in ChickP, an Israel-based startup developing chickpea protein.

Founded in 1989, The Growthwell Group 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). As of today, that lineup will also include ChickP, maker of super high protein chickpea powder for use in meat and dairy alternatives. It sells products to roughly 1500 retailers and 3000 foodservice establishments.

Growthwell plans to use ChickP’s proprietary protein isolate to develop new products for the Asia-Pacific market. According to AgFunder, the new chickpea-powered foods will include plant-based shrimp and squid meat, as well as a vegan crab burger. Next up, it’ll develop chickpea milk and ice cream.

In addition to bringing ChickP’s protein to Asia, Growthwell will also use its new funding to open a new R&D center in Singapore with fully automated production lines. The facility is slated to open in 2021. The company is also working to bring its suite of plant-based foods to new markets, specifically China and Australia.

For its part, Temasek is all over the alternative protein space. This year alone they’ve already made investments in cultured meat startup Memphis Meats, Impossible Foods, and Califia Farms. In 2019 they put some major capital into Perfect Day’s flora-based dairy technology.

Asia is a burgeoning market for alternative protein, especially as the African Swine Fever decimated pork production and COVID-19 has thrown a wrench into meat manufacturing. Singapore in particular, with its goal to produce 30 percent of its food within its borders by 2030, has invested quite heavily in the plant-based food space.

At the same time, U.S. players are making their own play for the alternative protein market in Asia. Beyond Meat began selling at Starbucks in China last week and Cargill has a limited-time launch of plant-based chicken at KFC China. Impossible Foods isn’t far behind.

These three are peddling vegan beef, chicken, and pork, so Growthwell is focusing on less crowded markets like seafood and dairy. We’ll have to see if their new funding can help the company push through the challenges of COVID-19 and become a plant-based powerhouse on the other wise.

Hybrid VC Firm Big Idea Ventures Wants to Scale the Alternative Protein Revolution

We hear a lot about plant-based startups raking in big funding dollars — cough, Impossible Foods, cough — but not a lot about the companies investing in them.

One such company working to fund the alternative protein revolution is Big Idea Ventures (BIV). Helmed by Andrew Ive, formerly of food innovation accelerator Food-X, Big Idea Ventures is a hybrid venture firm with a VC arm and accelerator program.

It tore onto the scene a few weeks ago when it closed its first fund: the New Protein Fund, which now stands at roughly $50 million. “It’s the first and largest plant-based accelerator fund,” Ive told me over the phone last week.

The fund is backed by giants like Tyson Foods and Temasek, the Singaporean government’s VC arm. It will focusing heavily on plant-based protein startups, Ive said they’re are allocating 5 to 10 percent of their money for cell-based endeavors.

That makes it all the more interesting that they chose to make their first investment cultured shrimp company Shiok Meats. Ive told me that they were drawn in by the Singaporean startup’s product focus: crustaceans. He believes that the flavor and texture of cultured shrimp will be easier to commercialize than, say, beef or chicken. I’m not sure if that’s true, but it is impressive that Shiok Meats, which is less than a year old, has already done an (apparently successful) taste test of its minced “shrimp” in dumpling form.

BIV is also launching physical accelerator programs in two locations: New York City (to launch in Q3) and Singapore (to launch in Q4). Mike Lightman, Managing Partner of BIV, told me that they plan to accept 8 to 10 companies per cohort and do two cohorts per year. All accepted startups will receive $250,000 in funding, a space to work, and mentorship from their entrepreneurs in residence in exchange for a convertible note. Once the program is over, BIV will allocate $1 to $3 million among the top-performing companies. Over the next four years, Ive said that BIV is hoping to back around 100 companies.

In a lot of ways, this accelerator follows the typical script: young startups get funding and advice in exchange for a portion of their company. But BIV’s program diverges in a few ways. Firstly, it’s five months long as opposed to the more traditional three-month programs like Y Combinator and Food-X, which Ive found was too short to really help a company grow. BIV also has a full kitchen in their accelerator space, so startups can actually work on developing/scaling their products in-house. Finally, with their dual presence in Asia and the U.S. (with plans to expand into Europe sometime in the future), Lightman also noted that they can help reduce opportunity costs for entrepreneurs by giving them ready access to multiple markets.

BIV is entering the scene at a time when every major company and their mother seems to be launching a new accelerator. For mega CPG companies, like General Mills, Danone, and Kraft-Heinz, they’re a relatively easy way to discover new companies for acquisition and keep a finger on the pulse of what’s new and “hip.”

With this in mind, it’s not hard to see why Tyson and Temasek want to get in on an alternative protein accelerator.

Tyson has set out to become the number one provider of protein, no matter the source. It has invested widely in both plant-based and cell-based meat companies, including Memphis Meats, FutureMeat, and, up until recently, Beyond Meat. They’re also developing their own line of plant-based proteins set to launch this summer. Through their involvement in the BIV accelerator, Tyson will have access to a wide range of innovative new alternative protein companies, which they can try to acquire or just use to gain inspiration.

For Temasek’s part, Singapore has been quite progressive in pushing for innovation the alt-protein space. Through its new RIE2020 plan, the city-state will invest over $100 million in foodtech endeavors like cultured meat and microbial protein production. Temasek can use BIV’s cohorts to attract promising new alt-protein startups to Asia; which we’ve already predicted will be a hotbed for cell-based meat.

TL;DR: If you’re curious about what new companies are shaking up the alternative protein space, keep an eye on what Big Idea Ventures is up to. Another good way to stay up to date is to subscribe to our Future Food newsletter! You’ll get a weekly dose of in-depth analysis on the plant-based and cultured protein landscape.

If you’ve got a plant- or cell-based startup of your own, you can apply for BIV’s inaugural accelerator program here.