May 25, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Synthesis Capital already has more than $300 million in-pocket to invest in the next wave of innovative food tech startups and alternative protein platforms, making this new vehicle the largest fund ever raised in its class. 

Synthesis Capital Fund I is oversubscribed, anchored by private equity pioneer Jeremy Coller, through CPT Capital, and with a cornerstone investment from Société Familiale d’Investissements.

Significant capital commitments were also received from Nuveen, Credit Suisse Climate Innovation Fund, Sir Ronald Cohen through Dynamic Loop Capital, ADQ’s venture platform DisruptAD, The Nest, Heyi Holdings, and trusts associated with the Sainsbury family, Interogo Holding, WTT Investment Ltd. (Tsai Family office), and CIFF, among others.

“I am very excited by the level of interest we have received from investor partners in our fund, by their strong belief in our thesis, and by the sheer growth potential of the alternative protein space in the coming decades,” said Costa Yiannoulis, managing partner and co-founder, Synthesis Capital. “We already have investments in a number of game-changing companies under our belt and are well positioned, relatively early on in our deployment of the Synthesis Fund, to take advantage of the recent tech-wide market price correction, to back the food system unicorns of tomorrow.”

Founded in 2014 and with operations in the UK, the U.S., and Guernsey, Synthesis Capital is a leading global investor in the food technology and alternative platform spaces with a portfolio that includes investments in Upside Foods, which is April of this year raised a $400 million Series C – the largest funding round in the cultivated meat space to-date; Perfect Day, the first company to commercialize animal-free dairy ice cream produced through fermentation, and which closed on $350 million in October 2021; Redefine Meat, a plant-based innovators that has developed proprietary and scalable 3D printing technology to create whole cuts of meat; Culture Biosciences, a “biomanufacturing-as-a-service” platform through which customers can outsource the R&D and scale up using Biosceinces’ bioreactor farms; and Arkeon Biotechnologies, that has developed technology that uses CO2 to convert inorganic gasses into organic food.

These companies are examples of how Synthesis’ team has a track record of backing and growing some of the most cutting-edge, successful, and well-known startups and scale-ups in the food tech space. Together with a deep understanding of the industry, Synthesis is well positioned to identify and invest  in companies that have the highest potential to drive the future of food.

 “At Synthesis we back founders and companies with strong technical foundations and scaling potential,” said Yiannoulis. “ In order to transform our food system to feed 10 billion people by 2050, within planetary boundaries, these new food technologies and platforms are imperative.”

The official launch of this fund coincides with a looming global scale food and energy crisis. Climate change, the instability and unsustainable nature of the animal-based protein industry, a global pandemic, and the rising cost of living have all coalesced into a challenging situation that is supremely challenging.

Compounding this reality is the war in Ukraine that has resulted in massive disruptions to crop production, global trade, and soaring food insecurity. All together, Synthesis Capital states that these conditions indicate that the need for food system transformations is more critical than ever. Adding that the food system is at an inflection point – a place where there exists the potential to redefine our food system to sustainably feed the world. 

Rosie Wardle, partner and co-founder, Synthesis Capital commented, “We are now at an inflection point in the industry where real innovation is coming to bear in the food system, driven by a confluence of factors including capital markets readiness, prioritization of sustainability and climate goals by governments and corporates, and consumer choice shifting towards healthier and animal-free foods.”

“With deep experience in this sector, we are ready to take advantage of this significant investment opportunity, and are confident that alternative proteins will no longer be considered “alternative” in the near future,” Wardle continued. “We are incredibly grateful for the support of our investor partners who share our belief in the significant potential of harnessing alternative protein technologies and platforms to transform our ailing and antiquated food system.”

David Welch, chief scientific officer and co-founder, Synthesis Capital also noted how traditional food technology alone doesn’t have the power to create better versions of meat, eggs, and dairy products that consumers want to eat. 

“The paradigm shift we are now witnessing lies with companies combining the best from food technology and modern biotechnology in new, innovative ways,” said Welch. “This convergence of synthetic biology, tissue engineering, 3D printing, food chemistry, and other enabling technologies will allow us to transform plants, microorganisms, and animal cells into nutritious, scalable, sustainable food that tastes great, is priced competitively, and is accessible to all.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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