February 16, 2021

By Lynda Kiernan, Global AgInvesting Media

Protix, a Dutch startup breeding larvae from Black Soldier Flies (BSF) for sustainable animal feed production, announced it has closed on €15.5 million (US$18.6 million) in new funding.

Participating in the round was Invest-NL, a new investor for the company, that committed €7.5 million (US$9 million) to the round, along with existing investors Aqua-Spark, Rabo Corporate Investments, and the BOM-Brabant Development Company. 

This new investment for Invest-NL not only aligns with the National Protein Strategy, but also with the firm’s investment strategy of supporting innovative, rapidly-growing companies whose work advances the shift toward CO2 neutrality, and is its first direct contribution to protein transition in the agrifood sector.

Founded in 2009 by former McKinsey & Company colleagues Kees Aarts and Tarique Arsiwala, Protix uses low-grade organic waste as feedstock to produce insects for the production of high-quality proteins, lipids, and micro-nutrients for use in animal feed rations. Through this process, the company is able to supply a low-impact protein alternative that can serve to help meet growing demand for fish, meat, and eggs from a growing global population, while also preventing the overfishing and deforestation stemming from the sourcing of fishmeal and soy for rations.

Wouter Bos, CEO of Invest-NL, said, “I am pleased that we can support Protix in strengthening its international top position in the fast-growing market for insect-based ingredients. I also think it is favorable that we establish this transaction together with the European Investment Fund (EIF). With the ‘InnovFin SME guarantee’ that we recently agreed with the EIF, innovative, fast-growing companies can scale up even faster with the help of European investment funds.”

Working the Bugs Out

Although still far from being mainstream in Western cultures, the numerous benefits of sourcing protein from insects – and the EU Commission’s approval of insect-derived protein for inclusion in aquaculture feed rations on December 13, 2016 – has prompted growing acceptance by investors, entrepreneurs, and consumers. 

Along with Protix, Irish insect protein startup Hexafly, and French startups NextProtein and Ynsect have all been raising capital since 2016. More recently, the industry has been gaining traction, with larger investments from more high-profile investors.

In June 2018, AgriProtein Holdings UK set a new high in investor commitment to the sector when it raised $105 million. Less than a year later, in January 2019, AgriProtein went on to acquire Millibeter N.V., a Belgian insect feed company, for an undisclosed amount.

In August of that same year, ADM Capital’s Cibus Fund, which closed at  $452 million in funding, led a significant funding round for Enterra Feed Corporation, a top developer and producer of sustainable insect-based feed ingredients for the aquaculture, pet food, and poultry feed industries.

And in October 2019, Thai Union, the world’s largest producer of shelf-stable tuna products, launched a $30 million food tech venture fund, making its first investment in Flying SpArk, an Israeli insect-based alternative protein startup.

More recently, May 2020 saw two more funding rounds in the category when the Trendlines AgriFood Fund made its second investment in Singapore-based startup Insectta, and an investor consortium led by Blue Oceans Partners led a US$11.2 million Series A in Paris and Tunisia-based nextProtein. 

With the capital from this round, Protix stated that it will further optimize its production capacity at its new plant opened in the summer of 2019 in Bergen Op Zoom, in the Netherlands, and accelerate its international expansion. 

“Protix was born from innovation with a focus on positive environmental impact,” said Kees Aarts, founder and CEO, Protix. “We are the founder of a whole new category of proteins and other nutrients and the brilliant colleagues at Protix work on this day and night. This is another great step in the expansion of our leadership and many more will follow in the coming period.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.