July 20, 2021

photo credit: Nature’s Fynd

By Lynda Kiernan-Stone, Global AgInvesting Media

From its beginnings in volcanic springs in Yellowstone National Park to your plate – Nature’s Fynd announced it has raised a $350 million Series C to bring its fungi-derived protein called “Fy” to market.

This round, which brings the company’s total funding to more than $500 million, was led by SoftBank’s Vision Fund 2, and included new investors Blackstone Strategic Partners, Balyasny Asset Management, Hillhouse Investment, EDBI, SK Inc., and Hongkou, along with additional existing investors – Breakthrough Energy Ventures, Generation Investment Management, 1955 Capital, Danone Manifesto Ventures, and ADM.

Born under the name Sustainable Bioproducts as a research project under NASA, and based out of the Polsky Center for Entrepreneurship and Innovation at the University of Chicago, the original aim was to study extremophile organisms – microbes that can live and thrive under extreme conditions, according to company CEO Thomas Jonas.

“In these challenging times, securing food for our growing population under the immense pressure of climate change becomes even more urgent,” said Jonas in March 2020, when the company closed on its $80 million Series B. “We must find new solutions that can both nourish people and nurture the planet. Our innovative technology was developed by studying nature’s own solutions for adapting — and ultimately thriving — in environments with limited resources.”

This work led the team to study microbes living in the volcanic springs at Yellowstone National Park, and to the development of an innovative fermentation technology that enables the production of a highly versatile protein that uses 99 percent less land and 87 percent less water than beef.

Through the company’s process, high-protein extremophile microbes are fed starches or glycerin, which then rapidly multiply. The final product, called Fy™ (“fai”), which contains the nine essential amino acids considered key to the human diet, makes it a rare non-animal source of complete protein, as well as dietary fiber, calcium, and vitamins that can be formulated to be a solid, powder, or liquid, and can be either savory or sweet.

“We know consumers today expect great tasting meat and dairy alternatives without compromising on health or sustainability,” said Thomas Jonas, CEO and co-founder, Nature’s Fynd. “And Fy – our natural, complete vegan protein delivers on all fronts: amazing taste and texture while being healthier for people and gentler on the planet than traditional proteins.”

The company noted that this protein product, which recently received FDA approval for use in food products, is well suited for dairy and meat alternatives. Indeed, the company piloted the sale of Fy-based sausage and cream cheese packs through its site this past February, which sold out in a matter of 24 hours. 

“The successful launch of our Fy Breakfast Bundle with Original Meatless Breakfast Patties and Dairy-free Cream Cheese earlier this year—which sold out in 24 hours— clearly showed that we can meet our consumers’ expectations for delicious meat and dairy alternatives with no tradeoffs,” said Jonas.

With this capital, Nature’s Fynd plans to drive growth by expanding production capacity, adding to its product portfolio, and by forging new partnerships that will serve as a foundation from which to pursue global expansion.

“In the past year, we also showed that we can grow Fy at commercial scale leveraging robotics and automation in our new state-of-the-art facility in Chicago’s historic Union Stockyards,” said Jonas.

“In 2022, we will bring our branded Fy based foods to consumers in the US, expand to new geographies with a special focus on Asia,” he continued, “where there is substantial demand and need for sustainable protein and create multiple brand-aligned partnerships for retail, quick-serve restaurants (QSR) and emerging high growth channels.”

Angela Du, investment director, SoftBank Investment Advisers, also sees a bright future for the company, adding, “Nature’s Fynd is combining its unique fermentation technology with robotics to develop protein-rich foods that are significantly more sustainable to create, and produced in a fraction of the time as animal- and soy-based proteins. We are excited to partner with Thomas Jonas and the Nature’s Fynd team to help them scale their business and capture the tremendous global opportunities in front of them.”

– Lynda Kiernan-Stone is editor 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 Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.