May 15, 2019

Israel-based cellular meat startup Aleph Farms announced it has secured funding totaling $12 million through a Series A led by VisVires New Protein. 

Notably, animal protein giant Cargill also participated in the round, along with M-Industry, the industrial group of Migros, Switzerland, and existing investors Strauss Group, Peregrine Ventures, CPT Capital, Jesselson Investments, New Crop Capital, and Technion Investment Opportunity Fund.

Co-founded in 2017 by Israeli food tech incubator The Kitchen and Technion, Aleph Farms uses a unique 3D, non-GMO tissue engineering technology developed with Professor Shulamit Levenberg of the Technion – Israel Institute of Technology based on the natural ability in cows to regenerate and build muscle tissue.

Through this natural process, the company discovered a method to isolate cells responsible for this regeneration, which it then grows outside of the animal, creating steaks without harming animals or the environment.

And although in direct contrast to its animal protein business, Cargill states that it views its investment in Aleph Farms as being complementary in nature to its existing portfolio.

“Consumer demand for protein continues to be very strong. That means there’s an opportunity for plant and cultured protein growth to complement our traditional animal protein portfolio,” said Sonya Roberts, managing director of growth ventures and strategic pricing for Cargill Protein North America.

Indeed, Aleph Farms is not Cargill’s first investment in alternative protein development. Having participated in a $17 million Series A for Memphis Meats, a San Francisco-based cellular meat startup, in 2017.

“We are committed to being the leading protein provider that nourishes people, animals, and the planet in a safe, responsible and sustainable way while exceeding the expectations of our customers,” said John Keating, president of Cargill’s Wichita-based protein business operations and supply chain at the time. “We have great positive growth momentum and are confident it will continue to accelerate as we continue to help our customers’ and suppliers’ businesses, communities and colleagues thrive.”

Cargill has also made investments in other alternative protein companies including a strategic partnership with Delacon – a pioneering global leader in phytogenic (plant-based) feed additives – through an unspecified minority equity investment, and PURIS Proteins, a cultivator of organic, non-GMO, U.S.-sourced plant-based ingredients and foods, and the largest pea protein producer in North America,

“Companies like Cargill recognize the immense investment opportunity to diversify their portfolios and reap the profits as this nascent industry takes form,” said Bruce Friedrich, executive director of the Good Food Institute, reports Food Dive. “As the cell-based meat industry matures into a revenue-generating industry, there will be room for investment on a much larger scale than what has been injected thus far.”

Bio-Farms

Consumers are more closely engaged with their food supply chains and retail choices than ever. In recent years, concerns associated with animal protein production have increasingly come to the fore, including antibiotic resistance, sustainability, animal welfare, food-borne illnesses, and environmental impact – all challenges that Aleph Farms is looking to address.

The capital raised through this round will support the company in the acceleration for the product development of its slaughter-free meat, and for the commercialization of its prototype released in December 2018 through the production of its cultured meat in large, clean bio-farm facilities (similar to dairy facilities) within three to five years.

“We will be part of the long-term solution,” said Didier Toubia, co-founder and CEO of Aleph Farms. “We intend to lead an open dialog with farmers and food and feed producers. In addition, we continue to work closely with the regulators to ensure our products will be completely safe, healthy and properly labelled. We welcome the collaboration with the USDA and FDA as an opportunity to promote transparency and build trust with all stakeholders.”

-Lynda Kiernan