March 8, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Approximately half of New Zealand’s total greenhouse gas emissions are attributed to animal agriculture. Of these emissions, three quarters are due to methane from the livestock sector, followed by nitrogen soil amendments, and then manure. 

One of the newest and most intriguing ways that science has developed to counter the ecological fallout from animal ag is the production of identical proteins through precision fermentation. 

With the potential to revolutionize the food industry and mitigate food insecurity, New Zealand-based and woman-led Daisy Lab is pioneering this precision technology to develop novel ways of producing high-quality, dairy-identical proteins.

Reflecting this potential and the strength of the Daisy Lab team, the startup announced it has successfully closed an oversubscribed Seed round of funding co-led by Latesha Randall, founding trustee of The Values Trust, an investor in climate change solutions; Icehouse Ventures, an early-stage investor in New Zealand high potential, high growth startups; and early-stage, deep-tech fund Outset Ventures; and with participation from Even Capital. 

“Animal agriculture is currently our largest contributor to greenhouse gas emissions here in Aotearoa New Zealand. This needs to change. Daisy Lab’s technology has the potential to produce the foods we know and love without the high emissions and water use,” said Latesha Randall, founder, The Values Trust. “We are here to support their mission of creating high quality proteins using precision fermentation and drive the solutions we urgently need to tackle climate change.”

Previous investors in the startup include Outset Ventures, K1W1, and Sustainable Food Ventures. 

“We are thrilled to have closed our seed funding round and are grateful for the support of The Values Trust, Icehouse Ventures, Outset Ventures, Even Capital, and our other investors, among whom are a number of experienced angel investors like Paul Davidson, Serge van Dam and Adam Clark,” said Irina Miller, co-founder and CEO, Daisy Lab.

With this funding, Daisy Lab stated that it intends to scale up production of their microbial whey protein while continuing their research into caseins, another protein found in mammalian milk, with the goal of having its first product prototype by the end of this year. 

“New Zealand has a long history of dairy innovation, and we are excited to drive this technology forward right here, in Aotearoa,” said Emily McIsaac, co-founder and operations manager, Daisy Lab. “We are looking forward to strengthening our collaboration with the food industry and contributing to the transformation of our global food system.”

Indeed, New Zealand’s openness to innovation and technology has recently been highlighted as the country was singled out as leading the world in regenerative agriculture. It is the first country in the world to propose a tax on agricultural emissions, and representative bodies such as Beef + Lamb New Zealand are leaning into advocacy and research to gain consumer confidence in these shifts. 

Sarah Park, co-founder and managing partner with Even Capital, explained what was the impetus for their participation in support of Daisy Lab, saying, “Daisy Lab’s all-female founder team has the enviable combination of domain-expertise, scientific pedigree, and grit to capture our attention.”

“Their infographic depicting 80 dairy cows being replaced by one precision fermentation tank to produce dairy-identical proteins was a hugely impactful and enlightening moment. As investors, we are looking for solutions that can meet global demands as well as having a positive environmental impact. The United Nations is forecasting a 74 percent increase in demand for protein by 2050 driven by population growth, so the innovation shown by Daisy Lab has the potential to be a global game-changer.“

In anticipation of rapid growth, Daisy Lab has also announced the appointment of Leon Clement as the Board Chair. With more than 20 years of experience in the traditional dairy industry holding senior leadership roles in CPG and dairy manufacturing, Clement will work closely with Daisy Lab’s team providing strategic guidance as the company grows and innovates. 

“We have an ambitious vision for the future of food production, and this funding will help us get there faster,” said Dr Nikki Freed, co-founder and chief science officer, Daisy Lab. “We are excited to continue developing our technology and bringing our innovative products to market.”

~ Lynda Kiernan-Stone is editor in chief 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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