January 20, 2021

Photo credit: BlueNalu

By Lynda Kiernan, Global AgInvesting Media

San Diego-based cellular seafood startup BlueNalu has raised the largest funding round to-date in the global cellular seafood space, closing on a $60 million Series A led by Rage Capital. 

The round (which included a wide range of existing and new investors) also listed additional notable backers including Lewis & Clark AgriFood, Agronomics, McWin, Radicle Growth (via the Radicle Protein Challenge by Syngenta), Rich Products Corporation, and Thai Union – along with AiiM Partners, Clear Current Capital, CPT Capital, Flat World Partners, KBW Ventures, Losa Group, OurCrowd, Silicon Valley Community Foundation, and Stray Dog Ventures, among others.

As part of the funding round BlueNalu has also expanded its cadre of Observers to its Board from six to 10, adding Steven Fin of Siddhi Capital, Jim Mellon of Agronomics, Larry Page of Lewis & Clark AgriFood, and Alex Ruimy of Rage Capital.

Founded by company President and CEO Lou Cooperhouse and Chief Technology Officer Chris Dammann, the name BlueNalu incorporates “Nalu”, a Hawaiian word that when used as a noun refers to the waves of the ocean, and when used as a verb means to meditate, ponder, or contemplate.

Recognizing the range of challenges being faced by the wild catch seafood industry, including fraud, overfishing, environmental impact, pollution, illegal labor issues, and heavy metal toxicity, the founding team brought together expertise in cell biology, IP, food tech, tissue engineering, commercialization, and marketing to sustainably create cell-cultured finned fish, crustaceans, and molluscs in a laboratory setting.

“The team at BlueNalu is driven to produce cell-based seafood products that are healthy for consumers, humane for animals, sustainable for our planet, and provide increased food security to each nation in which we go to market,” said Lou Cooperhouse, president and CEO, BlueNalu.

The capital from this round will enable the company to achieve multiple strategic goals over the course of the coming year including securing FDA approval for its initial products, and the launch of a 40,000 square-foot headquarters and production facility in San Diego, California, with the capacity to scale up sufficient output of cell-based mahi mahi to reach the foodservice market. Following the ramp-up of mahi mahi production, BlueNalu then anticipates the launch of a premium bluefin tuna product.

“This recent financing will allow us to continue advancing our mission and the next phase of our commercialization plans, while we continue to develop strategic partnerships that we expect will provide us with global market reach during the coming years,” noted Cooperhouse.

In preparation for reaching market, BlueNalu is currently forging joint venture partnerships within its targeted geographies that it expects will be of aid in navigating regulatory channels, lowering the cost of goods, introducing new species and product ideations, and helping direct the startup’s global market strategy.

These five include: Nutreco, a global leader in animal nutrition and aquafeed; Griffith Foods, a global product development partner in the food industry; Pulmuone, a leader in  healthy lifestyle and sustainable food products with distribution in Asia and North America; Japan’s Sumitomo Corporation, a global investor and supplier of goods and services including foods; and Rich Product Corporation – a leading multinational supplier of icings, cakes, pizza, desserts, appetizers, and bakery products, and which has a growing line of value-added seafood products. 

“The global market for seafood is highly vulnerable today and is valued at an estimated $200 billion,” said Amir Feder, CFO, BlueNalu. “With strong investor support, our innovative and visionary management team demonstrates a clear value proposition, technology, IP, and a comprehensive regulatory strategy, all of which provide a solid foundation as we move closer to our in-market launch.”

Another key factor to the success of cell-based meats and seafoods on the consumer market is perception, and the ability for these startups to gain the goodwill of not only consumers but regulators as well.

Toward this end, BlueNalu is one of five cellular meat companies to have formed the Alliance for Meat, Poultry, & Seafood Innovation (AMPS). Together with Memphis Meats, JUST, Finless Foods, and Fork & Goode, the coalition works as a united front to represent the interests of pioneering companies, working with government officials to determine the labeling and  regulatory frameworks that will be in place once cellular meats, poultry, and seafood products reach market shelves. 

And with its new headquarters and production facility — which is nearly seven times larger than its current location and includes a product development and demonstration kitchen, an R&D and quality assurance space, and a production floor certified by Good Manufacturing Practices with a weekly capacity to produce 500 pounds of cellular seafood — getting to market is in reach, and regulatory issues are paramount.

Although there is no current U.S. regulatory framework overseeing cellular meats, the company has been working with the FDA for more than a year and expects approvals to come through within about six months.

“Our goal is to launch into commerce by the end of this year, and everything we’re doing is to accomplish that objective,” Cooperhouse told Food Dive. 

 – 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.