July 29, 2020

Cover photo courtesy of Geltor.

By Lynda Kiernan, Global AgInvesting Media

British protein investor CPT Capital has led an impressive $91.3 million Series B round for Geltor, a biodesigner of animal-free, sustainable cultured proteins.

Taiwan-based WTT Investment Ltd. was also a significant contributor to the round, which also included Cultivian Sandbox, SOSV, Blue Horizon Ventures, RIT Capital Partners, Humboldt Fund, Pegasus Tech Ventures, and the investment arms of global ingredient tech company GELITA and Archer Daniels Midland (ADM).

Founded in 2015 by Alexander Lorestani and Nick Ouzounov in San Leandro, California, Geltor is a biodesigner of cultured animal-free proteins (such as collagen)  that it produces through a microbial fermentation process similar to that used to make beer.

Global demand for collagen has grown by 25 percent over the past year, according to the company, which saw sales of its first two vegan collagen products – HumaColl21® and Collume® surge.

Traditional collagen, which is used in a wide range of food and personal care products, is sourced from pigs – presenting a challenge for consumers looking to shift into a plant-based or vegan diet and lifestyle. Furthermore, COVID-19 and outbreaks of African swine fever have not only caused serious disruption to global supply chains, but have also had an outsized effect on China’s hog herd – making animal-free alternatives attractive to both consumers and CPG companies looking to source ingredients.

“Our goal is to make it ridiculously easy for iconic brands to build sustainable products,” said Alex Lorestani, CEO and co-founder, Geltor. “This next stage of growth will allow Geltor to meet the moment our world is facing, as businesses recognize the urgent need to transition to a sustainable protein supply chain.”

In only five years Geltor has scaled its technology platform 100-fold to produce hundreds of proteins, and the capital from this round, which has brought total funding for Geltor to $116.3 million to-date, will be used to meet ever increasing demand from the food and beverage, nutraceuticals, and cosmetics and personal care industries.

“We’re grateful to have investors who see Geltor as an index of this important shift to a system powered by fermentation and plant-based platforms like ours,” said Lorestani. “As a scientist, I’m convinced that the highest-impact action I can take to support human and planetary health is making our Ingredients-as-a-Service™ platform better every single day.”

Between 2019 and 2025 the global alternative protein market is expected to grow at a CAGR of 9.5 percent, according to Meticulous Market Research, reaching a value of $17.9 billion over that time period, reports Forbes. But through its technology platform, Geltor is also potentially able to displace carrageenan and agar agar, to gain a foothold in the alternative gelatin market, valued at $3 billion, notes Food Dive.

“Geltor’s chief technology officer and co-founder Nick Ouzounov said, “Having established the success of our biodesign platform, we are now able to work even more closely with customers to develop unique tailored bioactive ingredients for their specific product needs. We’ve only scratched the surface of what our technology can unlock for our clients at unprecedented speed.”

Another aspect of Geltor’s business that was attractive to CPT Capital was its novel ability to develop bespoke bioactive ingredients for customers representing a vast market.

“We see huge market potential for Geltor’s protein platform across categories from cosmetics to food,” said Costa Yiannoulis, investment director CPT Capital, and board director, Geltor.

“We are excited by the speed and skill with which they are building out their capabilities. Even more so, in light of the havoc wreaked by COVID-19 on protein supply chains globally, we believe Geltor is laying the foundations for the sustainable, resilient, protein supply chain of the future.”

– 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.