Top Sources for a Circular Food Economy
Chart of the Week – Top Sources for a Circular Food Economy
Agri-food technology has a big role to play in a global transition to a circular economy, by substituting some traditional food and feed as well as non-renewable plastics and chemicals, with renewable or upcycled products, from food, agricultural and other waste.
The bioeconomy refers to the conversion of biological resources into goods and services such as food, energy and materials, which at present accounts for significant nature destruction and greenhouse gas emissions.
Our Chart of the Week highlights company-level fund-raisings in a few selected waste sources. While these selected technologies are a small theme to date ($150m cumulative fund-raising), they are growing rapidly.
At New Food Finance, we aim to define and drive a global green transition in food production, by increasing transparency around fund-raisings, technologies and companies. Using our platform, we identify five categories of technology and company presently driving an agri-food, circular bioeconomy.
Upcycling waste directly
One food waste valorisation theme is the use of spent yeast and / or spent grain from beer producers. Rich in protein and fibre, this waste is traditionally used for animal feed or thrown away. Startups such as Agrain, Yeasty, Yeap, reyve and Protein Distillery are upcycling spent yeast or grain into flours.
Fermentation
Some companies are using fermentation to extract additional value. One manufacturer going an extra step in circularity is Funki Foods, a mycoprotein-based fermentation company looking to leverage co-located food processing side streams. By locating in situ, the company aims to increase its commercial case, by supplying ingredients back to the food processor directly. Meanwhile a hot precision fermentation theme is to feed genetically engineered yeast with waste streams, to produce specific target proteins, for example at Xylome and Future Cow.
Using insects
Many insect protein producers use food and agricultural waste to feed black soldier flies and other insects, processing these into multiple products such as animal feed and oils. Examples are legion, and include Entocycle, FreezeM and Goterra.
Producing bio-fertilisers
Circularity also applies to agricultural inputs, where non-renewable chemical fertilisers are carbon-intensive and can lead to downstream greenhouse gas emissions and water pollution. Companies are aiming to close a nutrient loop, by converting food, agricultural and other waste or pollution such as sludge into bio-fertilisers. Examples include Plant Response (food scraps), Kaffe Bueno (coffee waste), Lombris (municipal waste), Terraforming LIFE (livestock waste), Gross-Wen Technologies (waste water) and California Safe Soil (supermarket waste).
Aquaponics
Aquaponics uses the waste streams from fish to feed plants, saving water and nutrients. For example, Fusion Farms says it is creating closed-loop aquaponics systems in Puerto Rico, eliminating the need for chemical fertilizers, and powered using renewable energy.
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“Green Transition” Deals of the Week
At New Food Finance, our mission is to highlight a global “Green Transition” in food production. Every day, we track new deals and companies, by trawling through tens of news websites, and through direct outreach.
In our “Green Transition” space last week, we saw deals worth more than $175million:
United States, November 22 – Shuttered Gro Intelligence provided machine learning-based crop forecasts and climate insights. The closed company was acquired by Almanac for an undisclosed amount.
Canada, November 22 – Cascadia Seaweed grows kelp, and processes and produces seaweed-based products for regenerative agriculture, including biostimulants and agrifeeds. The company raised $2.9 million from WWF Impact and Vere Ventures.
United States, November 21 – Oishii, a producer of vertically farmed strawberries, raised $150 million in Venture Capital from Climate Tech Fund, Miyako Capital, NTT, McWin Capital Partners, and others.
Belgium, November 21 – BiocSol, a developer of microbial biopesticides targeting mildew and other challenges, raised $5.44 million in Pre-Venture Capital funding from the Agri Investment Fund and VIVES Inter-University Fund.
United States, November 21 – Four Growers Inc., developer of the GR-100 autonomous tomato harvesting robot, raised $9 million in Venture Capital from Ospraie Ag Science, Y Combinator, and Bassett Capital.
United States, November 20 – EarthOptics, a soil data mapping company using vehicle-mounted sensors for real-time insights, raised $24 million from Leaps by Bayer, The Production Board, Conti Ventures, and others.
Netherlands, November 19 – Dutch cultivated meat producer Meatable raised an undisclosed amount in Venture Capital from Betagro Ventures.
Japan, November 18 – IntegriCulture raised $13.1 million in funding from the Future Food Fund for its cultivated meat systems that naturally induce cell growth factors.
Argentina, November 18 – Unibaio raised $1 million in funding from Empire State Development for its chitosan-based microparticles, improving pesticide and fertilizer efficiency while enhancing plant growth.
New Food Finance Resources
Our Monthly Market Report aims to increase transparency around market news and prices in our “green transition” space:
November 6: Monthly Market Report – October
Our Deep-Dive Briefings each give the low-down on an emerging technology up-ending food production:
November 27: Cultivated Meat Optimisation and Innovation
November 13: Bacteriophages in green agriculture
October 30: Sustainable Animal Feed Additives
October 15: Proteins as Biological pesticides