Cell-based food maker New Age Meats raises $2.7M in funding

Dive Brief:

  • Cell-based meat firm New Age Meats stated it raised $2.7 million in seed funding in a spherical led by ff Venture Capital.
  • The funding will probably be used to develop the startup’s staff in addition to to extend its entry to automation tools wanted to hurry up R&D and manufacturing.
  • New Age Meats was based in 2018 and was a graduate of IndieBio’s accelerator program. It has already produced a pattern of cell-based pork that underwent a style take a look at. 

Dive Insight:

As customers search for meat and meat-like merchandise produced from nontraditional sources, lab-grown merchandise have grabbed the eye of buyers wanting to revenue from their development. According to a report from The Good Food Institute launched final May, buyers have put greater than $16 billion into U.S. plant-based and cell-based meat corporations throughout a 10 12 months interval — with $13 billion of it coming in 2017 and 2018 alone.

This inflow in money coincides with elevated curiosity from customers for “clean meat.” A survey carried out in early 2018 from Surveygoo discovered 40% of Americans are prepared to attempt lab-grown meat. Months later, a research carried out by Kadence International confirmed 66% of customers can be prepared to attempt lab-grown protein. 

While customers look like prepared to embrace lab-grown meat, its future is much from sure. Much like GMO merchandise didn’t concern customers till they proliferated by {the marketplace}, cell-based meat stays a largely unfamiliar idea for many individuals. A current ballot discovered 4 in 10 customers assume lab-grown food is “scary” and so they don’t have any curiosity in attempting it. This might be an issue for New Age Meats and different corporations in the house. 

Already, the FDA has held hearings to go off this rising stress surrounding a product that’s nonetheless largely unavailable for widespread consumption. A massive barrier to commercialization stays value. To make cell-cultured meat reasonably priced to the common shopper, a handful of corporations are racing to be first to market with reasonably priced beef, rooster, fish or crustacean merchandise.

Israeli startup Aleph Farms lately introduced it had developed a cell-grown minute steak. Memphis Meats, which has obtained investments from Tyson Foods and Cargill, is engaged on lab-cultured meat and poultry, whereas Finless Foods is producing algae-based shrimp. Just is also creating lab-grown rooster nuggets and has partnered with Japanese meat producer Toriyama to provide lab-grown wagyu beef. 

According to Crunchbase, New Age Meats has raised a complete of $5.7 million in three funding rounds. Even although it hasn’t raised as a lot capital as different cultivated meat corporations, New Age Meats has produced a cell-cultured pork sausage final 12 months that obtained constructive opinions, in line with The Spoon. The newest funding might assist it develop the product for market. 

However, it might require both a partnership with an even bigger firm that has entry to distribution or a bigger inflow in capital to make it extra aggressive with established cell-cultured purveyors. New Age Meats’ main investor this spherical, ff Venture Capital, has funded different know-how and AI corporations that goal to streamline and automate manufacturing, however this seems to be the primary cell-based producer it has invested in.

Many VC corporations are making investments in the cell-cultured meat house. The Good Food Institute discovered that international cell-cultured meat corporations noticed a flurry of exercise in 2018 with 12 corporations elevating $50 million in 14 offers. This inflow is probably going in response to the prediction that different meat gross sales — which incorporates cell-cultured meat — might hit $140 billion through the subsequent 10 years.

Although there’s pleasure in the house, the cell-based meat trade goes to should put a considerable quantity of funding to develop the product and broadly produce it at a value engaging to customers — together with hundreds of thousands extra to coach and promote it to consumers to get them to purchase in. If these corporations can persuade those who the product is tasty and secure, there’s a good probability the futuristic promise of lab-grown meat will put modern-day strain on the normal meat trade.

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