January 23, 2020

By Lynda Kiernan

Cell-based meat, poultry, and seafood company Memphis Meats announced it has raised a $161 million Series B, representing the largest funding round to-date in the cell-based meat industry. This funding, which was led by SoftBank Group, Norwest, and Temasek, brings Memphis Meats’ total funding to date to more than $180 million. Also participating in this round were new and existing investors: Bill Gates, Finistere, Richard Branson, Threshold Ventures, Cargill, Tyson Foods, Future Ventures, Kimball Musk, Fifty Years, and CPT Capital. 

“We are excited to welcome these investors into our Big Tent,” said Uma Valeti, M.D., co-founder and CEO, Memphis Meats. “Memphis Meats is revolutionizing how meat is brought to every table around the world. We are providing compelling and delicious choices by producing real meat from animal cells, its natural building blocks.”

The deepening of the connection between consumers and their food supply chains, along with a rising popularity of veganism, concerns over animal rights, and awareness around the hormones, antibiotic usage, and lack of sustainability inherent in the global livestock industry have driven many consumers to look toward alternative ways to get protein into their diet.

Thus, alternative protein sources have been increasingly on the radar of both consumers and investors. 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 protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in animal meat and seafood production.

Meat production uses one-third of the world’s fresh water and land surface, while also generating one-fifth of all greenhouses gas emission. And as evidence mounts that the global animal protein production system is not sustainable, Memphis Meats stated on its website that its goal is a simple one – “to transform how foods gets to the plate”.

To do this, the company is creating products grown in a lab from animal stem cells through a clean process that brings cells to meat in four to six weeks.

“The reality is that conventional production methods for meat can’t keep up with global demand, which is expected to double by 2050,” said Priti Youssef Choski, partner, Norwest Venture Partners.

“Cell-based meat addresses this issue while offering enormous potential to improve the environment and have a positive impact on food safety and animal welfare. Memphis Meats is on a mission to serve up real meat without the compromise. We are thrilled to partner with this visionary team.”

This round is not only the largest to-date in the cell-based meat sector, but also dwarfs Memphis Meats’ $17 million Series A led by DFI in August 2017. 

At almost 10 times the size, this capital is being earmarked to fund the building of a pilot production facility in San Fransisco’s East Bay area, to expand Memphis Meats’ team, and to fund the commercial launch of products into the market.

“Our hope is to be able to produce products from many species that people enjoy eating today,” Steve Myrick, vice president of operations, Memphis Meats, told Food Dive. “I think the proof is in the pudding when people come and try our products. We think that they already create a wonderful consumer experience. And lifelong meat eaters have given us the feedback that the products are delicious — and very clearly meat products.”

A definitive timeline for such a launch has not yet been disclosed, however, the company is currently working with regulatory bodies to ensure a smooth entry into the $1.4 trillion market, and Myrick notes that a plant could be operational within 24 months.

“Cell-based meat is poised to dramatically expand humanity’s capacity to feed a growing global population while preserving our culinary traditions and protecting our planet,” said Dr. Veleti.

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.