September 11, 2017

Flying SpArk, an Israel-based producer of insect protein for human consumption derived from the Mediterranean fruit fly, has been selected as one of 10 startups for IKEA’s inaugural accelerator, IKEA Bootcamp.

Focused on producing a sustainable alternative to animal protein in the human diet, Flying SpArk is working to develop a line of all natural fruit fly powders and oils that are high in protein, calcium, iron, and potassium, but unlike meat-based protein, contains zero cholesterol, and has a lower cost per protein content compared to cricket or mealworm powder, Eron Gronich, Flying SpArk co-founder and CEO, told Food Navigator in January of this year.

Bootcamp

In May of this year, Swedish retail giant IKEA announced the formation of IKEA Bootcamp – its first start-up accelerator launched in partnership with Danish entrepreneurship business, Rainmaking, designed to foster growth for innovators looking to solve what IKEA calls the “Big Problems” in order to “co-create a better everyday life”.

The three-month program, which runs from September 18 to December 8 at the IKEA Range & Supply Democratic Design Center in Älmhult, Sweden, provides each of 10 participating startups with approximately $US$22.500 in capital, access to IKEA’s prototype shop, test labs, free housing and co-working space, mentorship provided by a senior global IKEA business leader, and tailored mentorship and advice from both IKEA and Rainmaking’s global network of experts.

Addressing one of the “Big Problems” is integral to Flying SpArk’s mission, and a key reason it was chosen by IKEA to join its first bootcamp class. Global population growth is on a trajectory toward a human population of 9 billion within one generation, according to the company, of which half will be faced with inadequate nutrition. Flying SpArk co-founders Eran Gronichand and Yoram Yerushalmi see this challenge as one that can be answered through fruit fly farming. The commercial scale production of fruit flies requires no land, and nearly no water. The company states that the flies – which are high in essential minerals and protein – harvest themselves with no human intervention, resulting in a clean production system.

The Next Level

Although far from being mainstream in Western cultures, the numerous benefits of sourcing protein from insects – and the EU Commission’s approval of insect-derived protein for inclusion in aquaculture feed rations on December 13, 2016 – has prompted a range of startups in the space and has sparked interest in the investment universe. Between 2011 and 2015, the use of edible insects has grown at a compounded annual growth rate (CAGR) of more than 58 percent, according to Innova Market Insights.

“Millennials want to create a more sustainable world, to make it a better place for all of us, and they are willing to add insect flour to their food to help achieve this goal,” noted Gronich.

This growing acceptance has been reflected in the number of recent investment deals and the larger capital rounds being announced.

In December 2016, Paris-based mass-scale breeder and producer of insects for the livestock, pet, and fish feed markets Ynsect raised $15.2 million through a Series B led by Future Positive Capital, Quadia SA and Bpifrance Ecotechnologies, and including existing investors, Emertec, Demeter, Vis Vires New Protein Capital, and Business Angels.

This round brought the company’s total raised funding to $37 million over the past three years.

Soon after in January of this year, NextProtein, a Paris and Tunis-based producer of animal feed components and biological fertilizer from insect larvae, raised €1.3M in a funding round featuring Kima Ventures, along with angel investors – Jerome Lecat, Khaled Helioui, (who also backed Uber and Deliveroo), Sylvie Ganter, Christophe Cervasel, and participants from the Anaxago financing platform and AngelSquare.

Two months later, in March of this year, Hexafly, an Ireland-based biotech firm started by three university friends – Alvan Hunt, John Lynam, and Patrick McGarvey – secured a second round of funding totaling €1 million (US$1.07 million) to scale up their insect farming operation.

“Our plan is to establish three scaled up plants in Ireland and one in the UK in the next three years,” Hunt told Feed Navigator. “With this latest round of funding we have the investment to do this and we are confident the demand is there.”

More recently in June of this year, Dutch biotech startup Protix – a breeder of insects for sustainable animal feed production – was in the news, announcing the successful raising of €45 million (just under US$50.5 million)  through a round including Aqua-Spark, Rabobank, BOM, and additional unnamed investors.

Over the past 12 months Flying SpArk has been working to establish the infrastructure and build out the technologies that are integral to the production of fruit flies, but the tie-in with IKEA will help bring the company to the next level.

“We are excited to join the IKEA accelerator and to have the opportunity to learn how to work with a giant retailer like IKEA,” says Eran Gronich, co-founder & CEO of Flying SpArk. “This will completely enhance our product development and how we progress. IKEA will mentor and work with our team toward [an] eventual collaboration between the companies to develop a product and hopefully to launch it at IKEA’s restaurants.”

-Lynda Kiernan