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The Agronomics Team are very excited to bring you the following updates from Q1 2022.
Key highlights:
- Expanded the portfolio to 21 companies, covering major categories within cellular agriculture including beef, chicken, pork, fish, crustaceans, leather, egg proteins and, more recently, collagen
- Added 3 new names to the portfolio – Geltor, Good Dog Food and Onego Bio
- Led 2 deals – Onego Bio’s Seed funding round, and SuperMeat’s Series A
- Launched our first joint venture in collaboration with Roslin Technologies, a world leading provider of cell-lines for use in the cultivated meat sector
- Welcomed Hamood Al Fanna as a new Senior Associate, joining from IDO Investments in Oman
- Joined the Alternative Protein Association (APA) as a founding member
What is cellular agriculture?
Cellular Agriculture is the direct production of agricultural products from cells, removing animals from supply chains:
- Cell culture – cultivated meat, seafood and materials such as leather
- Fermentation – inclusive of biomass and precision fermentation – the modification of microbes to produce valuable molecules such as proteins, fats and oils
- Enabling Technologies – bioreactor manufacturers, low-cost growth factor methodologies, biodegradable or edible scaffolding for cultivated meat
These technologies aim to provide more sustainable methodologies for the development of such products, reducing greenhouse gas emissions, antibiotic requirements, land use, water use, energy use, improving animal welfare and mitigating climate change.
Alternative Protein Association (APA)
Agronomics joined the Alternative Protein Association (APA) as a founding member in March 2022, following a successful launch evening at the House of Commons. The APA is a trade association and non-profit organisation, designed to promote the value of alternative proteins in the UK. APA was launched by Jeremy Coller and the Lord Sarfraz, and is the largest association of its kind in Europe. It will be a place for entrepreneurs, policymakers, researchers, thought-leaders and investors to navigate the UK regulatory process and advocate for public policy to support the development of the rapidly evolving UK alternative protein industry. For more information, please find their website here.
Investments
In Q1 2022, Agronomics added 3 new names to the portfolio: precision fermentation biodesign company Geltor, precision fermentation egg protein company Onego Bio and UK focused cultivated meat company Good Dog Food.
Agronomics also completed follow on investments in cultivated cotton company GALY and cultivated chicken company SuperMeat.
Agronomics announced in March that it had co-led Tel Aviv based cultivated chicken company SuperMeat’s Series A financing, alongside New Agrarian, with a US$ 10 million investment. Ajinomoto, a Japanese multinational food and biotech company, which specialises in amino acid fermentation production – producing nearly 20 amino acids at 27 locations around the world, also joined the round as part of their strategic partnership with SuperMeat. Agronomics will now carry the aggregate position in its accounts at a book value of US$ 19.35 million, subject to audit, including an unrealised gain on cost of US$ 6.95 million, representing an internal rate of return of 207%. The SuperMeat position in the Agronomics portfolio will represent approximately 10% of Net Asset Value. Following the close of the funding round, Agronomics will have the right to appoint a board member to SuperMeat and will have a 7.77% equity interest.
Geltor is a biodesign company focused on producing designer proteins for use in the cosmetic industry, as well as food and nutrition. The company was co-founded in 2015 by Alexander Lorestani, CEO, and Nick Ouzounov to develop tailored bioactive ingredients to replace traditional animal-derived proteins. It currently has four products commercialised: Collume®, HumaColl21, PrimaColl™ and Elastapure. Collume® was Geltor’s first product launched in 2018, the world’s first animal free collagen. In June of last year, Geltor unveiled its first product aimed at the food and beverage industry – PrimaColl™. Agronomics acquired 1,069,593 Preferred Stock in a secondary transaction in Geltor, for total consideration of US$ 9,449,525. This represents an equity stake in Geltor, on a fully diluted basis, of 2.05%.
Onego Bio is a spin-out from VTT, one of Europe’s leading research institutions. The company harnesses precision fermentation to develop egg proteins without the need for traditional agriculture, with the aim of providing people with sustainable, delicious and animal-free egg protein. It was founded in Helsinki in 2021 by CEO Maija Itkonen, CTO Chris Landowski, and COO Jussi Joensuu, after many years of developing and researching their precision fermentation technology whilst at VTT. Demand for alternative egg white protein continues to grow, due to the environmental and welfare concerns associated with animal husbandry, and continued global pressure on supplier to go cage-free. Agronomics invested EUR 6.9 million as part of a EUR 10 million Seed fundraising round. Agronomics will have the right to a board seat and will hold an equity stake on a fully diluted basis of 19.94%.
Following Agronomics’ initial investment in 2020, Agronomics invested a further US$ 1 million in GALY’s Series A fundraise for a 4.11% equity ownership on a fully diluted basis. GALY is a leading plant cell culture company with disruptive technology for growing cotton from cells in a laboratory facility rather than utilising traditional soil-based methods. Agronomics first invested in GALY in 2020, with a US$ 500,000 investment in the form of a SAFE. This SAFE has converted to 909,090 Series A Preferred Shares, representing an IRR of 79% and Multiple on Invested Capital of 4.94. In aggregate, Agronomics will hold 1,273,800 Series A Preferred Stock in GALY. Subject to audit, Agronomics will now carry this aggregate position in its accounts at a book value of US$ 3.47 million, representing an unrealised gain on cost of US$ 1.97 million.
Good Dog Food is an exclusive joint venture between Roslin Technologies and Agronomics, focused on producing, developing, marketing and selling cultivated pet food. The concept of Good Dog Food includes the creation of a novel range of pet food products from ingredients that will appeal to pet owners who value sustainable, slaughter-free, antibiotic free, high quality nutritious food for their pets. Roslin Technologies is a spin-out of the renowned Roslin Institute at the University of Edinburgh, experts in animal biology made famous by Dolly the Sheep- the first mammal successfully cloned from an adult cell. Meat constitutes around 20-40% of a pet’s diet, resulting in pet food accounting for 25-30% of the environmental impact of meat consumption in the US. Good Dog Food is led by CEO Owen Ensor, and recently appointed Helder Cruz as CSO. Helder previously led the successful serum-free media development at portfolio company Mosa Meat to induce the proliferation and differentiation of bovine stem cells into muscle and fat tissues.
Portfolio breakdown
Portfolio breakdown by Net Asset Value contribution shown below. Agronomics currently has approximately £54 million in cash reserves for investments in new and existing opportunities within cellular agriculture in 2022.
Largest contributors to Net Asset Value, aside from cash, are: SuperMeat, cultivated leather company VitroLabs, precision fermentation dairy company Formo, Geltor, cultivated beef and pork company Meatable and cultivated seafood company BlueNalu.
Agronomics has a global mandate, investing predominantly in US and European companies. Majority of the portfolio is currently at the Series A stage. Agronomics focuses largely on cell culture and fermentation companies.
Portfolio in the news
- BlueNalu agreed partnership with FOOD & LIFE COMPANIES, the largest sushi restaurant operator in Japan.
- The EVERY Company launched macaroons created using their animal-free egg protein in collaboration with Chantal Guillon, a San Francisco based macaroon producer.
- SuperMeat partnership with PHW Group
- Onego named in the top 10 Finnish start-ups to watch
- Mosa Meat unveils how they removed FBS
- California Cultured, Formo and The EVERY Company products featured at the SOSV ‘Taste the Future’ event co-hosted by Uma Therman and Liam Payne
- SuperMeat’s cultivated chicken passed the taste test – WATCH FULL VIDEO
- CellX and Bluu Seafood (formerly Bluu Biosciences) announce strategic partnership to support each other across the whole value chain, once they begin expanding into their respective markets.
Master investor
In March 2022, Agronomics was represented at the Master Investor Show in London – the largest UK investor show. The Agrarian Revolution panel, led by FT’s David Stevenson, with Agronomics, Meatable and Onego participating can be found here. Co-founder Anthony Chow’s presentation from the event can be found here.
Left to right: David Stevenson, Future Food Finance; Maija Itkonen, CEO and co-founder, Onego Bio; Daan Luining, CTO and Co-founder, Meatable; Anthony Chow, Co-founder, Agronomics
Co-founder Anthony Chow presenting at the Master Investor Show, March 2022
Wider industry news
- The Dutch House of Representatives vote in favour of cultivated meat tastings – a crucial step on the route to regulatory approval
- IPCC report specifically mentions cellular fermentation and cultured meat as emerging food technologies that can bring a substantial reduction in direct greenhouse gas emissions from food production
- China included cultivated meat and other “future foods” in its five year agricultural plan for the first time
- Israel-based precision fermentation company, Remilk, announced the completion of a US$ 120 million Series B round led by Hanaco Ventures, with Rage Capital, and CPT Capital both joining.
- San Francisco-based cultivated salmon company, Wildtype, announced the completion of its US$ 100 million Series B round, with new investors including L Catterton, Cargill, Temasek, Leonardo DiCaprio, Bezos Expeditions and FootPrint Coalition