July 27, 2018

True Ventures and Collaborative Fund have co-led a $4.25 million seed round for Terramino Foods, an alternative protein startup making meat and seafood products from fungi that have the same texture, taste, and nutrition as animal-based meats.

Terramino co-founders Kimberlie Le and Joshua Nixon were part of Indie Bio, a leading biotech accelerator that helps scientists commercialize their innovations. Through the accelerator, the pair secured initial funding and product development support. Terramino developed its first product – a sustainable salmon burger that looks, smells, and tastes like salmon, but also contains omega-3 fatty acids and is high in digestible protein, unlike many plant-based meats – out of the Alternative Meat Lab at UC Berkeley’s Sutardja Center for Entrepreneurship and Technology.

The product line will be completely animal-free and non-GMO, being made from koji,  the same fungus used to make miso, sake, and soy sauce. Once brewed in liquid and made into strands, the kohi is mixed with algae to match salmon’s flavor and nutrition.

“Terramino has identified a protein platform that has massive potential because of its unique texture and ability to substitute for many different animal proteins,” said Lauren Loktev, partner at Collaborative Fund. “As avid investors in meat alternatives, we were blown away by the taste and texture of Terramino’s salmon burgers and we’re excited to support Kim and Josh as they build a world-class team to create a new category in food.”

Multiple Channels

Growth in global demand for seafood has increased at 3.2 percent per year since 1960, outpacing the 1 percent annual growth in global population, according to Philippe de Lapérouse, co-head and managing director with HighQuest Consulting. Over the same time period, per capita consumption of seafood has more than doubled from 10 kilograms per person to more than 20 kilograms per person today, driven by demand from Asian markets where seafood has historically been a cornerstone of the regional diet, and by consumers in developed markets who are looking to include healthier protein in their diets.

Due to overfishing and the depletion of wild-caught fish stocks, as well as concern over the ecological ramifications of wild catch fishing, and health concerns surrounding mercury and heavy metal levels found in some seafood, consumers are looking for seafood that leaves a lighter footprint.

Enter plant-based seafood. Vegan seafood options not only satisfy these concerns, but eliminate questions regarding animal welfare, and give the seven million Americans with often deadly allergies to seafood and shellfish a safe option.

Plant-based beef and poultry products have been gaining market traction in recent years, becoming more mainstream, while plant-based seafood options have been slower to reach market. However, given that four out of every 10 pounds of consumed animals are fish, early innovators and their investors have the opportunity to corner a lucrative market category.

This apparent gap in the market is leading to an increasing number of startups dedicated to commercializing plant-based seafoods in one form or another. Other startups in the space include:

~ New Wave Foods, an alum of the Silicon Valley-based  IndiBio tech accelerator, launched two products: an algae-based popcorn shrimp, and un-breaded, cooked shrimp ahead of schedule  in April 2017 due to high demand.

~  Wild Type, a company growing cultured meat in a laboratory, recently raised $3.5 million through a Seed Round in March of this year led by Spark Capital and including Root Ventures and Mission Bay Capital, along with other unnamed investors, to further the production of lab-grown salmon.

~ Similarly, another startup, Finless Foods  (another alum of IndiBio), is also engaged in tissue engineering to develop lab-grown bluefin tuna after raising a $3 million Seed Round last year.

Terramino’s production method using koji, however, allows for the company to develop products for multiple category channels.

“We plan to expand into multiple seafood and meat products using our flexible and efficient protein platform,” said Le, who will be serving as Terramino’s CEO.

-Lynda Kiernan