November 19, 2020

By Lynda Kiernan, Global AgInvesting Media

Israeli chickpea protein producer InnovoPro announced it has secured $18 million in funding through a second round led by Jerusalem Venture Partners (JVP), and included the Rabo Food & Agri Innovation Fund, part of Rabobank’s investment arm Rabo Corporate Investments, leading Israeli VC fund ICOS Capital, and early-stage investment platform iAngels.

This funding follows upon a $15 million raise completed by the company in April of this year. 

Founded in 2015 by Dr. Ascher Schmulewitz in Raanana, north of Tel Aviv in Israel, InnovoPro says it is the world’s first food company to successfully produce a 70 percent protein concentrate from chickpeas using their proprietary extraction process.

Called CP-Pro 70, the functional vegan protein concentrate has a neutral taste, is highly-nutritious, and is non-GMO, soy-free, dairy-free, gluten-free, is not a listed allergen, and contains no phytoestrogens, giving it the ability to be used as a clean label ingredient for a range of products including dairy-free yogurts, vegan ice cream, veggie burgers, and energy bars. 

“Chickpea with its high protein, fiber, iron and other characteristics leads to a more nutritious alternative and allows for cleaner labeling with no need for the emulsifiers, enhancers or masking agents necessary with competing analogues,” said Richard O’Gorman, managing director, Rabo Food & Agri Innovation Fund. “Chickpea is a sustainable source, driven by crop characteristics such as comparatively lower water usage and carbon footprint with rotational qualities.”

The market for plant-based protein is currently estimated at US$40 billion, as plant-based food sales jumped by more than 20 percent over the past year to hit $3.3 billion. However, InnovoPro is aiming for the overall meat, poultry, and fish markets which are looking toward a higher level of sustainability, and the ability to cater to consumers who are looking to reduce their meat and dairy intake.

“The growing demand for plant-based protein is setting new records with every year that goes by,” said Taly Nechushtan, CEO of InnovoPro in 2018. “We believe that developing a tasty, gluten-free food ingredient could provide the answer to the rising demand for plant-based protein products.”

Nechushtan went on to explain what sets InnovoPro’s protein apart from its rivals, saying, “While the chickpea protein competes against other plant proteins, it features a different behavior pattern. For starters, the production of chickpea protein is green, clean and eco-friendly. Our process comprises production of protein and starch.”

As has been true across the agriculture and food landscape, COVID-19 has rapidly changed consumer habits, national priorities, and global trade norms – widening the growth opportunity for new, more sustainable food formulations and ingredients.

“The COVID-19 crisis has created a new reality, positioning food security as an essential need,” said JVP Founder and Chairman Dr. Erel Margalit.

“The significant decrease in world trade and in available employees on farms, creates the need to be self-sustainable at all times. Additionally, the COVID-19 crisis has raised worldwide awareness of healthier foods and better food processing standards,” continued Margalit.

This has increased the need for creative sustainable solutions and innovation in the changing world of what we eat. InnovoPro has become a leader in the Israeli food-tech industry and is on the path to becoming a world food-tech leader.”

Now, with this fresh capital, InnovoPro has the power to capitalize upon this new reality to attain its strategic growth objectives, according to Nechushtan, who said, “InnovoPro will use the additional funding to scale up operational capabilities through increasing production capacity and for further business development activities, including forming joint ventures with strategic partners.”

“As part of our sustainable growth strategy, we will also use the added funding to explore production collaboration options for our protein and future products in the EU, to expand our EU supply chain capabilities.”

– 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.