May 28, 2020

By Lynda Kiernan, Global AgInvesting Media

nextProtein, a Paris and Tunis-based producer of animal feed components and biological fertilizer from insect larvae, announced it has raised €10.2 million (US$11.2 million) through a Series A led by an investor consortium coordinated by Blue Oceans Partners.

Participants included Telos Impact and RAISE Impact, with support from Natixis Investment Managers affiliate, Mirova, through the Althelia Sustainable Ocean Fund, Kepple Africa Ventures, and Aucfan Incubate Inc.

Founded in 2015 by Syrine Chaalala and Mohamed Gastli, nextProtein is headquartered in Paris, but also has an insect raising operation near Tunis, Tunisia where the company gathers EU-approved organic waste from local markets that would have been discarded to use in its bioconversion process that creates animal feedstock protein and natural agricultural fertilizer.

The outcome is a more sustainable feed source that can be processed into components for aquaculture, livestock, and pet feeds that is produced using significantly less land, energy, water, and resources, while also producing significantly reduced greenhouse gasses, reducing food waste, and protecting our oceans.

“Insect protein provides solutions to major societal problems: a growing population with a higher demand for fish and meat and a degrading environment,” said nextProtein co-founder Syrine Chaalala.

 “Addressing these macro-trends at scale demands a commitment of equal magnitude from us,” added Gastli. “Delivering on this pledge has required nextProtein to be at the forefront of sustainable indoor and vertical farming innovation, and to gather the best and brightest to drive future progress.”

From its headquarters in Paris, nextProtein’s business models a shift toward a circular economy, separating itself from the industry standardized methods that use mainly cereal by-products as a feed source, toward using fruit and vegetable waste to feed its insects.

“The agricultural sector is ripe for disruption, especially if we hope to feed a growing global population sustainably,” said Chaalala. “With nextProtein, we are helping mainstream a new environmentally friendly industry, so it is very important to keep the highest standards in order to build and maintain consumer trust in our products.”

 “Our strategy was to find raw materials that were local, unwanted and available in large quantities so as to reintegrate these nutrients into our food systems, giving new value to what was essentially considered worthless or even burdensome.”

This funding, which follows upon €1.3 million raised by the company in 2017, will be used to scale up production to 100,000 tons per year, or 10 percent of the total global insect protein market by 2025 as it initially focuses on the growing aquaculture industry. To do this, the startup is planning to build a second cutting-edge facility, expand its team, and accelerate its R&D program. 

“While sustainability is a prerequisite to our impact, price competitiveness determines its scale and pace,” said Etienne Raynaud, head of strategy for nextProtein. 

“We have worked hard to become the most cost-efficient player, and this fundraising will enable nextProtein to emerge as a prominent industry-shaping company for the decade to come by bringing to market the next generation of insect-derived products.”

Currently, nextProtein is one of the few companies with operations outside of the EU that has its products certified through the Trade Control and Expert System (TRACES) – the most strident standards in the world, overseeing the import of animal products within its borders.

This product lineup includes protein powder for farmed fish, poultry, pigs, and pets, that for every kilogram of insect protein is estimated to save three kilograms of ocean fish from being caught to use as fishmeal. 

Commented Christian Lim, co-founding partner of Blue Oceans Partners, “We are excited to back nextProtein because it has developed the most scalable insect farm model to date, which is the key for insect protein to become a mainstream animal and aquaculture feed.”

– 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.