June 24, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Israel-based plant-based nutrition company Equinom announced it has closed on a $20 million Series C led by The Phoenix, and including Fortissimo, BASF Venture Capital, Trendlines, and Maverick.

Indeed, in February of last year, Trendlines chose Equinom as its first investment, committing $1.6 million of a $10 million Series B led by BASF.  Fortissimo and Roquette are also returning investors, having previously participated in last year’s Series B.

Founded in Givat Brenner, Israel, in 2012, Equinom is a computational non-GMO breeding company in the process of shaping the future of plant protein through its development of smarter seeds that are more nutritious and offer higher protein and oil content compared to current commercial varieties.

By using fast-track, AI-driven breeding methodology that harnesses the natural genetic variety in plants, Equinom is able to develop seeds with highly-valued characteristics and organoleptic properties by leveraging traditional crossbreeding with computational genetic algorithms.

The results being the maximization of the genetic potential of exotic and ancient crops to mend the unsatisfying results of yield-focused breeding and low quality ingredients.

“Equinom is uniquely positioned in the agtech space as a major player who can impact the future of food,” said Elad Givoni, head of private equity, The Phoenix. “Through its proprietary technology, distinct methodology and unique genomic database, Equinom is able to create a wide range of products for a broad spectrum of commercial food applications, while ensuring that the products can be quickly adapted to rapidly changing market needs.”

As the first company to design seeds exclusively for the food industry, the success of Equinom’s business is reflected in the fact that it has become the preferred global supplier of sesame seeds, by creating varieties that can be mechanically harvested.

Today, the company has grown into a major source of plant protein, making it more affordable and accessible for the production of nutritious foods. With more than 100,000 acres grown across five continents, Equinom has secured millions of dollars in contracts with market-leading brands.

“Seven years ago we started exploring the industry and have quickly become a global pioneer in the agtech space,” said Gil Shalev, PhD., founder and CEO, Equinom. “Through our collaborations with leading food brands like Pepsico-owned Sabra, we are the first non-GMO/non gene edited breeding company that developed ingredients with multiple traits that  are already available in the market.”

Euromonitor has concluded that since 2015, global clean label food sales have grown by $15 billion, and the Market Research Future (MRFR) has determined that the global plant-based food market will carry a value of $30 billion by 2027. 

Furthermore, global protein consumption is expected to climb at a CAGR of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Over this same time period, alternative plant-based protein sources are forecast to command up to one-third of the protein market.

Positioning itself to capitalize upon these trends, Equinom has partnered with some of the world’s most innovative in the food space such as the afore-mentioned PepsiCo-owned Sabra, as well as Roquette, and Dipasa.

And with the capital from this round, the company plans to continue to expand its operations in sales, marketing, research, and development on a global scale.

“With this capital vote of trust from investors, we now have the ability to unleash our products in the market and become a global leader in the agtech space,” said Shalev. “Leveraging our cutting-edge seed-to-plate food-application technology to create source ingredients, Equinom helps market-leading food brands turn regular food into super food.”

“Similar to how consumers use Google,” Shalev continued, “we anticipate they will use Equinom’s AI database to match their needs with non-GMO ingredients that have never been explored before. In Q4 we will be releasing our first batch of Smarter Pea Protein concentrate to the market which will be the highest pea protein concentrate available in the world.”

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@globalaginvesting.com.