January 3, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Precision fermentation is really not a new technology. For decades it has been used for very specific applications, such as the production of insulin. However, barriers having to do with the costs associated with development of the technology and production have bottlenecked growth – until recently. 

In 1978, Arthur Riggs and Keiichi Itakura made one of the most powerful discoveries in human history when they determined that single-celled bacteria and yeast are micro-factories that can be utilized to create novel compounds, enabling them to use liquid fermentation to make the first biosynthetic insulin using a base of E. coli.

Over the ensuing decades, precision fermentation has become a focal point of food technology and alternative protein production thanks to a boom in synthetic biology and significant leaps being made in applications of gene editing. Researchers have worked to advance the science to the point where now they can reprogram single-celled organisms, such as yeast, bacteria, and algae, to make fuel such as ethanol, foods, and life-saving drugs.

And as consumer demands shift, and welfare and environmental concerns remain strongly connected to animal-based agriculture, precision fermentation is being seen as a channel for ushering in the future of food, and investors are increasingly keen to be fundamental drivers of this change.

Liberation Labs, a developer of a precision fermentation platform for the production of alternative proteins at scale, has just announced a close on $20 million in Seed funding co-led by Agronomics and Siddhi Capital. Joining the round was CPT Capital, Thia Ventures, 8090 Industries, and Echo.

Commenting on the investment, Jim Mellon, co-founder and executive director, Agronomics, said,  “Liberation Labs has the potential to dramatically accelerate adoption of novel proteins that are increasingly in demand by both existing and next-gen food companies responding to changing consumer preferences. We believe they will set a new standard in the industry and usher in a new era of innovation in healthy, sustainable and scalable foods.”

Founded by a team with a combined 50 years of experience, Liberation Labs is commercializing precision fermentation with a global network of purpose-built, international manufacturing facilities using cutting-edge processes combining modern technology and design for a fit-for-purpose approach and cost-effective solutions.

Poised to enable the next wave of biotechnology advancements in the field, Liberation Labs stated that it intends to use the capital from this round for, among other things, to purchase and develop a site on which to build its first commercial scale Launch Facility, which will have a fermentation capacity of 600,000 liters and a fully dedicated downstream process (DSP).

Mark Warner, co-founder and CEO, Liberation Labs, said, “Liberation Labs aims to dramatically increase availability of precision fermentation capacity to meet the rising demand for alternative proteins, fueled by population growth and increasingly health-conscious, impact-driven consumers.”

“Our business model enables us to not only meet the demand from today’s traditional food companies but unlock innovation among the dozens of emerging food-tech companies.”

With the close of this round, Liberation Labs’ teams’ focus is centered on completing the finalization of the site selection and Front End Loading level 3 (FEL-3) engineering processes. This initial phase will be followed by placing orders for long-lead equipment and building out the operations team.

As of today, the startup is projecting commissioning and commercial production at this first facility to commence by the end of 2024.

“We’re confident in the experience and talent of the senior executive team at Liberation Labs to deliver on a novel approach to precision fermentation,” said Steven Finn, co-founder and co-managing partner, Siddhi Capital.

“We believe they can make a significant contribution to making the global food system more sustainable and scalable.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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