April 21, 2022

photo credit: UPSIDE Foods

By Lynda Kiernan-Stone, Global AgInvesting Media

UPSIDE Foods (formerly Memphis Meats) has raised the largest funding round in the cultivated meat space to-date, closing on a $400 million Series C co-led by Temasek and Abu Dhabi Growth Fund (ADG).

This round, which brought UPSIDE Foods’ valuation to more than $1 billion, also included a broad coalition of financial, impact, and strategic investors indicative of the widespread global interest being generated by the industry, including Baillie Gifford, Givaudan, John Doerr, SALT fund, and Synthesis Capital. 

These new investors join existing investors  Bill Gates, Cargill, Cercano Management, CPT Capital, Dentsu Ventures, Singapore-based global investor EDBI, Kimbal and Christiana Musk, Norwest Venture Partners, SoftBank Vision Fund 2, SOSV’s Indie Bio, Whole Foods CEO John Mackey, and Tyson Foods.

Cell-cultivated meat was considered science fiction only a few years ago, but the space is increasingly crowded, and a company’s gotta do what a company’s gotta do to differentiate, gain consumer loyalty, and secure market share with an eye toward the future of the industry. Toward this end, Memphis Meats rebranded to Upside Foods in May 2021 to shine a spotlight on the positives of its upcoming products, and to align with its completely new consumer-focused messaging. 

Along with its new name, UPSIDE Foods also announced that its first product would be cell-cultured chicken, which it hoped would reach the market by the end of this year.

After creating the world’s first cultured meatball in 2016, the world’s first cultured chicken and duck in 2017, and raising the largest Series B funding round in the history of the category in 2020 when it closed on $161 million from some of the highest-profile investors in the world, UPSIDE Foods says that it’s making good on the promise upon which it was founded – that consumers can continue to enjoy their favorite foods humanely and sustainably. 

“Our team introduced the world to cultured meat, and the evolution to UPSIDE Foods communicates our passion and potential to make our favorite foods healthier for the planet,” said Uma Valeti, CEO and founder, UPSIDE Foods in May of last year. “Our new name showcases the work we are doing to make eating meat a force for good. We can’t wait for consumers to try our Upside chicken soon. If you love chicken and the planet, Upside is for you.”

This past year, the company has not only repeatedly made financing records, it  also driven partnerships, innovation, and scale in the industry. It has partnered with three-star Michelin chef Dominique Crenn; developed a cell feed that is totally free of animal components; acquired cultivated seafood company Cultured Decadence; and built and opened its Engineering, Production, and Innovation Center (EPIC) – the most advanced production facility and innovation center for cultivated meat in the world. Additionally, it recently conducted its first public tour of EPIC as part of a broader consumer education effort about cultivated meat and the company’s mission and production processes.

“As early supporters, we have been continually impressed to witness UPSIDE’s consistent, and industry-leading, technical and commercial progress since their founding in 2015, ” said Rosie Wardle, co-founder and partner, Synthesis Capital. “The company’s recent achievements have validated their position as the leading company in this sector. We are excited to continue backing and supporting UPSIDE to the next stage of commercial scale production, and to changing the food system for the better.”

With the capital from this round, UPSIDE Foods plans to build a commercial production facility that will have a yearly capacity in the tens of millions of pounds. The facility will be able to produce any species of meat alternative in both ground and whole cuts, and will have an initial focus on chicken.

“Our approach is to identify and hold transformational growth companies with the potential to disrupt industries,” said Chris Evdaimon, Baillie Gifford’s private companies team. “Cultivated meat is well on its way to becoming a large-scale industry. And UPSIDE Foods is a frontrunner in developing ways to both make and market the product. We believe it’s a great long-term investment that will help the environment, animal welfare and the food system as a whole.”

Additionally, this funding will support the build-out of a robust supply chain for critical cell feed components that will reduce costs and enable even greater scale. Other priorities for the company include ongoing consumer education, investing in R&D for the next generation of cultivated meat, and to continue to grow its 170+ person team. 

“UPSIDE has reached an historic inflection point, moving from R&D to commercialization,” said Dr. Uma Valeti, CEO and founder, UPSIDE Foods. “Our team at UPSIDE continues to overcome seemingly insurmountable challenges in our mission to make our favorite food a force for good. Working in partnership with our world-class coalition of investors, we’re excited to bring delicious, sustainable and humane meat to the consumers around the world.”

– 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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