Eight recently funded insect start-ups to watch

The pressure from climate change is growing, and pet parents are increasingly looking for sustainable pet food alternatives. In fact, according to the University of California, traditional pet food is responsible for 25% to 30% of the environmental impact of meat production.

Not surprisingly, therefore, is the recent surge in the number of insect product-based start-ups in the pet food industry. The 8 companies below caught the interest of investors and raked in new funding in 2022 for expansion and further development.

Innovafeed

The Paris-based insect producer has recently raised $250 million in a Series-D funding led by Qatar Investment Authority and other investors, such as ADM and Cargill.

The capital injection will be used to increase production in the insect protein production site in the north of France. The plant, located in Nesle, has a capacity of 15,000 tons of insect protein.

The French insect start-up is also eyeing international expansion in the US by building a new plant in partnership with ADM in Decatur, Illinois. Innovafeed said it is preparing a global rollout, including relevant developments in Asia.

Nutrition Technologies

The Singaporean insect provider closed a $20 million equity venture round with the objective to lead ‘the next agricultural revolution’ by increasing production and expanding into new markets, including Europe.

The company will expand its facility in Iskandar Puteri (Malaysia) and launch a new joint venture project.

It also wants to boost exports in key markets such as South Korea, Japan, Indonesia, Thailand, Vietnam, the Philippines and Chile.

Protenga

Singaporean biotech company Protenga raised $2 million in venture funding to invest in new production facilities. The company expects to launch its next- generation Smart Insect Farms in Malaysia, where organic by-products are converted into high-value protein and organic fertilizer.

According to the company, which also achieved a $2m Seed Round in 2020, the expansion is set to meet the rapidly increasing demand for insect-based ingredients for pet food in Southeast Asia.

The company also wants to launch its pet food brand YumGrubs by the end of the year.

Insecto

This South African company raised $5.3 million in a seed funding round last April, which is set to provide a boost to growing their business of producing high- quality proteins, oils and fertilizers.

“We believe that insects will play an important role, becoming a widely available source of sustainable protein, and an important form of nutrition to help meet the food demands of the future”, says Insecto co-founder and CEO Simon Hazell.

The new investment will also allow Insecto to expand its manufacturing capacity and expand its presence to other countries in Africa, Europe and the US.

Enorm Biofactory

Thanks to $55.9 million in a funding round in January, Danish insect protein start-up Enorm Biofactory is set to open the first production plant of insects on a commercial scale in Scandinavia in Hedensted, Denmark.

The plant will be in operation in the second half of 2023 and produce a staggering 11,000 tons of insect protein meal per year.

Proof of concept was gained over the past 3 years, in which Enorm Biofactory built a pilot plant on the Danish Jutland peninsula. Here they demonstrated technologies and operational capacities to enable the farming of insects. Currently, the company produces 3 tons of insect meal per week.

Protix

Dutch insect-based producer Protix was founded in 2009. They produce natural and sustainable ingredients from insects, and farm larvae that are used in various feeds for pets and other animals.

Earlier this year they raised €50 million in a funding round that will allow the company to expand internationally. CEO Kees Aarts highlighted that the next growth phase is all about global expansion, building new facilities and increasing capacity.

Petgood

Founded in 2020 by Pernilla Westergren and Thomas Dalebring, Petgood offers a range of insect-based dog products with natural and high-quality insect protein, as well as vitamins, minerals and fatty acids from vegetables, fruit and superfoods.

This Swedish company earlier this year raised $2.1 million in funding to expand their international presence, especially in Australia. As a result, they were able to partner with local insect farm Future Green Solutions in the Western part of Australia.

Divaks

Lithuanian food tech company Divaks raised €3 million in seed funding to develop high-quality, insect-derived ingredients for the food industry and pet food market.

The company is finalizing the launch of its own pilot manufacturing facility to produce yellow mealworm. This protein is described by CEO Kęstutis Lipnickas as being “exceptional” because it combines “the nutritional quality of beef with the sustainability credentials of many plant-based alternatives.”

Divaks, which focuses on delivering insect-derived ingredient solutions for premium pet food producers, is now seeking to raise €50 million through its Series-A funding round by the second quarter of 2023.