July 9, 2020

By Lynda Kiernan, Global AgInvesting Media

Leading global alternative protein venture capital fund Lever VC has partnered with Brinc, a global venture accelerator, to launch the Lever China Alternative Protein Fund – a joint investment fund and accelerator program to advance plant-based and cultivated meat and dairy startups in China.

This endeavor is being supported by Shanghai-based Lever Foods, a consultancy within the alternative protein space with corporate partners that include the venture capital arms of COFCO and Yili, the national industry group the China Plant-Based Foods Alliance, and major alternative protein companies such as Givaudan and Cremer, among others.

Lever VC is headquartered in Hong Kong, and is the first non-mainland venture fund to invest in mainland alternative protein startups, and the first to invest in cell-cultivated meat in China.

Indeed, Lever VC has connections with some of the top global names in alternative protein, with partners Lawrence Chu and Nick Cooney being early investors in Beyond Meat, Impossible Foods, Memphis Meats, and JUST.

This new fund is being established with initial capital totaling 40 million RMB (US$5.5 million) to invest in early stage Chinese alternative protein startups over the first four years. At the same time, Brinc will sponsor a comprehensive three-month accelerator program for interested portfolio companies at their 3,500-square-meter space in Guangzhou.

Lever is also committing up to another 160 million RMB (US$22.8 million) in potential follow-on investment capital from the Lever VC fund, bringing total investable capital for the venture to 200 million RMB (US$28.5 million).

Huge Potential 

A recent report, “Meat Substitutes: Will you Survive or Thrive the Disruption?” issued by OC&C notes the massive potential for growth in the Chinese market, which the Good Food Institute estimates is currently valued at $910 million, and has been growing at a rate of 14.3 percent since 2014. Additionally, Euromonitor estimates that China’s meat-free market will be valued at $12 billion by 2023. 

This growth in China is being driven by health concerns and growing considerations for the environment and animal welfare, mainly by younger consumers. COVID-19 is also a strong, new driver, as it brings to light the need for stronger food safety measures and reinforces the connection between health and the food we eat.

“Because of the coronavirus, people have started to pay more attention to their diet and health,” Mike Lee, a fitness trainer in Hong Kong, told Retuers in April. “People are now more afraid of getting sick.”

Furthermore, when China was hit by the African swine flu epidemic in 2019, the country saw pork prices skyrocket, creating greater interest in the potential that plant-based foods can present for less volatile food supply chains.

This, plus the fact that China is the largest soybean producing country in the world may or may not have been behind the recent move by the Chinese government to put forth dietary guidelines supporting the cutting of meat consumption by as much as 50 percent. Given the size of China’s population, and the fact that China is expected to account for about 35 percent of total global protein demand by 2025 — these facts reflect a huge potential disruption. 

On the Brinc

Brinc operates 10 multi-disciplinary accelerator programs in six countries and has made a total of 144 investments. 

With backing from Artesian, Brinc launched the first food tech accelerator program in China in 2019. Through this program, Brinc provided $80,000 per participating startup (with further capital set aside for startups that proved to have market traction); facilitated connections with experts, food scientists, investors, retailers, and customized training; and continued support to help startups advance. 

Since its launch, Brinc has invested in 15 startups including Phuture Foods, a developer of plant-based pork that is Halal certified; Grounded, the maker of 100 percent, natural plant-based protein shakes and foods; and Avant Meats, a Hong Kong-based maker of alternative fish products.

Brinc, together with Artesian, has also recently launched the BrincArtesian EMDE Access Fund to provide follow on capital alongside Lever VC.

“With the right backing and support, alternative meat startups can bring forth fundamental and lasting change to our global food system,” said Manav Gupta, CEO, Brinc.

“We will now be extending that platform to China-focused founders who will be able to make a difference with localised products in what is poised to become the world’s largest alternative meat market, thanks to our partnership with Lever VC,” Gupta added.

– 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.