January 19, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

China’s Starfield Food Science & Technology (Starfield) has raised the largest plant-based protein funding round to-date, bringing in $100 million through a Series B led by Beijing-based Primavera Capital Group, and including Alibaba’s CSO Ming Zeng, and existing investors Joy Capital, Lightspeed China Partners, Sky9 Capital, and Matrix Partners China. 

Concurrent to this funding round, Starfield also announced that it intends to establish a production base by building its first factory in the city of Xiaogan in Hubei Province.

Headquartered in Shenzhen, a city of 13 million people bordering on Hong Kong, Starfield is a next-generation alternative meat venture with its own R&D and manufacturing capabilities targeting the county’s 400 million millennials.

This round is the fifth one for the company since its formation in 2019 (in fact, Starfield was New Crop Capital’s first investment in China in March 2020) reflecting not only how rapidly growing the industry is, but a shift in focus for Chinese consumers and market toward plant-based proteins.

Based on the study of public records, The Good Food Institute (GFI) APAC, a non-profit working to advance alternative proteins, found a surge in funding from China to drive product development and to scale up its alternative protein industry. This activity is reminiscent of funding surges within the country for solar panel technologies and electric vehicles prior to market booms. 

By giving its domestic companies access to investment as consumer interest in alternative proteins gains steam, China appears to be positioning itself to dominate the plant-based and alternative protein sectors in anticipation of global growth. 

This trajectory has also been noted by Matilda Ho, founder and managing director of Bits x Bites, the first food-focused VC fund and accelerator established in China, and launcher of the China Food Tech Hub in 2019.

“Over the past decade, China has had its foot on the gas pedal to accelerate science and technology development,” said Ho in 2020. “Just this April China became the world’s biggest source of applications for international patents. In food and agriculture, Chinese scientists are also some of the most prolific producers of scientific research patents and papers.”

“Converting research into commercial successes will take time and a supportive network in the background,” continued Ho. “As an agrifood investor focused on the China market, we are thrilled to be working here on the ground with a growing community of corporations to support quality founders as they drive toward commercialization and scale.”

A New Plant for Plant-Based Growth

This round makes Starfield the fastest growing plant-based brand in China. As such, the company, through its novel B2B2C (business-to-business-to-consumer) model, has partnered with more than 100 domestic and offshore food suppliers and is present in more than 14,000 retail locations in China, including fast food chains, convenience stores, supermarkets, and cafes.

Through its collaborations, the company has forged co-branding partnerships with HeyTea, the most popular chain of tea shops in China; Dicos, the biggest chain of fast food cafes in China; Ole’ supermarkets, Alibaba’s chain markets; the FamilyMart chain of convenience stores; and Tim Hortons. 

Even through the global pandemic, Starfield’s growth was not slowed, launching new products in collaboration with the biggest food brands in China, including Luckin Coffee – China’s equivalent of Starbucks – to launch a series of Plant-Based Sandwich Combos in 5,200 shops nationwide.

Kiki Wu, Starfield founder and CEO, commented, “After financing, we will continue to introduce more delicious plant-based green foods with reasonable prices based on food science technology, create better eating experiences for Generation-Z consumers, and deliver a sustainable lifestyle culture.”

To reach this point, Starfield has relentlessly pursued its R&D through collaboration with teams from around the world, including the Beijing University of Technology and Industry, Jiangnan University, and Wageningen University in the Netherlands. It also has applied for approximately 30 patents for products developed through proprietary “enzymatic cross-linking” techniques that can replicate textures and support whole-cuts.

However, despite its meteoric growth, the company stated that there are not many plant-based protein technology companies in China that have built their own production plants. And once completed, Starfield plans to launch new products including braised beef, chicken thigh steaks, and pork chops. 

– 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 Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com. 

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