November 7, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Since its founding in 2014, and the launch of its first fund known as VisVires New Protein in 2016, Clay Capital has invested in some of the most innovative and forward-thinking food tech and agtech startups to emerge in recent times including CollectiveFoods, a last-mile, digitally driven delivery model;  Toopi Organics, a leader in transforming human urine into microbial bio-inputs for agriculture; Mushlabs, a maker of sustainable meat alternatives using fermentation; InOvo, a gender scanning technology addressing the 6.8 billion male chicks that are culled per year; and Aleph Farms, a producer of cultured beef using 95 percent less land and producing 80 percent less emissions than conventionally raised cattle. 

Now rebranded from its former name VisVires New Protein to Clay Capital, the firm announced it is launching its second fund with $145 million in capital to invest globally to strengthen the link between human health and that of the planet through innovative technologies. 

But, why the re-branding? The new name represents renewal of the firm’s commitment to the food tech and agtech category where they’ve been an investor for nine years, and represents an alignment with the innovations and impacts it aims to foster, as clay soil is is not only fertile soil for growth, but clay is a moldable material from which new items are formed. This plays into the firm’s intention to mold and form a healthier food system by providing the capital and hands-on partnership to entrepreneurs who share a mission to improve human health by regenerative the food system. 

The firm explained that it takes both an “evolutionary and revolutionary approach to renewing the food system and restoring health”. As a multi-stage food tech and agtech investor, Clay Capital brings together the deep knowledge and experience in the food and ag sectors in two regions: Europe and Asia, scaling disruptive new tech companies with positive impacts at the core of their identities mixed with a belief that our food system has the power to regenerate the planet and be a mitigator of climate change. 

“As part of the larger climate tech market, food remains a major source of emissions and natural  capital destruction,” noted Matthieu Vermersch, co-founder and partner, Clay Capital. “What’s changed in the sector over the last nine years is that tailwinds have increased, the maturity of the technology ripened and, of late, a focus on business fundamentals returned.” 

Europe has become the firm’s focus due to its strong food culture, commitment to sustainability, and rich field of startups that are more adaptable and capable of rapidly expanding beyond their own borders. This profile, paired with the progressive approach to food system innovation and supportive regulation found in Singapore, facilitates the firm’s goal of supporting founders with their expansion into Asia through Singapore. 

“Operating between the two continents, and serving as a connector, is something we’ve envisioned from day one of the firm, long  before Singapore became known as an ‘AgriFood Tech Hub’,” said Gerard Chia, partner, Clay Capital.

“Clay Capital’s positioning, between Singapore and London, is intentional, with the firm serving as a  bridge between the growing Asian and European markets and offering startups support in finding and accessing growth opportunities in both regions. We have deep cultural know-how and local connections that give our portfolio an advantage as they scale in both markets. We can take this hands-on approach because of our  concentrated portfolio strategy.” 

Specifically, Clay Capital is focused on making investments ranging from $3 million – $8 million with the possibility of follow-on investments, in companies applying technology to remedy a fundamental challenge in the areas of plastic and packaging alternatives, fermentation, agriculture biologicals, crop disease resistance, soil health, and regenerative agriculture. 

The firm stated that by making larger bets on a smaller number of companies, it allows for the dedication of time and attention to its portfolio founders, creating close relationships that pay dividends as references and pipeline sources for future dealflow.

This capital is then deployed to forge the connections between healthy soil to a healthy environment to healthy humans, led by a thesis where research and the lived experience of the team, along with the firm’s network and advisors, identify problems and invest in viable solutions.

“It’s not about building novel tech for the tech’s sake, but really understanding the roots and interconnections across the food system and finding smart ways to carve out superior health and economics that will make the system more sustainable, nutritious, and circular (waste-less), as well as scalable,” stated the firm. “These breakthroughs are what Clay Capital backs.”

~ 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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