Asia’s leading industrial insect company, Nutrition Technologies, closes US$20 million funding round to launch new products and expand into new markets

SINGAPORE, September 19, 2022 /PRNewswire/ — About September 19, 2022 Nutrition Technologies completed a venture capital round $20 million. The round was led by PTT Ventures and backed by Sumitomo Corporation, ING Sustainable Investments, Mandala Capital, along with continued participation from existing investors: Openspace Ventures, SEEDs Capital and Hera Capital. The cycle was advised by ING Corporate Finance. Proceeds will be used to fund expansion into new markets; launch new products; accelerate R&D; and create new strategic partnerships.

In addition to clean energy growth, PTT is expanding its portfolio to new businesses in line with global trends, sustainability and social responsibility. We look forward to partnering with Nutrition Technologies to support their next phase of growth. The commercial production of insect protein is one of the most significant innovations of recent years, with the potential to disrupt the animal feed and fertilizer industries and solve the myriad problems currently facing the world. Moreover, we hope this partnership will provide customers with innovative solutions to revolutionize the agricultural sector and improve people’s quality of life,” said Dr. Buranin Rattanasombat, Senior Executive Vice President, Innovation and New Ventures, PTT Public Company Limited.

We are very pleased to partner with Nutrition Technologies, an innovative company that has superior technology to produce sustainable protein. We believe that insect protein is one of the most important recent solutions to protein production, helping to solve various environmental problems and meet several Sustainable Development Goals (SDGs). We will use our business platform and customer network to promote and develop BSF derivative products” said Masahito UnoGM Life Sciences Division, Sumitomo Corporation.

Nutrition Technologies fits well with the investment strategy and portfolio of ING Sustainable Investments, as we seek to help sustainable businesses scale their operations. Together with our consortium partners, we also want to help the company take advantage of various opportunities in the rapidly growing European and Asian markets for alternative proteins.” said Marc WeustinkHead of Sustainable Investments at ING.

Nutrition Technologies has led the way in providing large scale and competitively priced black fly solutions to global markets. This means that they already offer a viable alternative to existing, less sustainable power options. To achieve this, the team demonstrated exceptional execution skills. Going forward, we have great belief in their expansion plans.” said Hian GohFounding Partner, Openspace Ventures.

“It is great to welcome our new investors, who collectively bring a wealth of expertise and experience to help us realize our vision. We are also humbled by the continued support provided by our existing shareholders.” said Tom Berryco-CEO and co-founder, Nutrition Technologies.

The insect sector has received increasing attention in recent years, with the global insect protein market alone estimated to be worth US$343 million in 2021, and is expected to grow at a CAGR of 26.49% to reach US$1.3 billion by 2027. As a sustainable solution to help minimize multiple unsustainable practices, the sector as a whole has seen investments total nearly 1 billion US dollarsbut with multiple technological locks, few companies have yet to reach industrial scale, let alone profitability.

Global food security has steadily declined over the past decades and has been significantly challenged in recent years by extreme weather events and wars. Population growth has fueled the current demand for 1.2 billion tons of animal feed ingredients, which has serious environmental consequences for both land and sea. There is a growing protein deficit, with traditional protein supplies for animal feed, such as fishmeal and soybean meal, which are stagnating due to overfishing and deforestation. Meanwhile, organic matter and food waste in landfills are significant contributors to greenhouse gas emissions, and the overuse of chemical fertilizers dramatically reduces the productivity and resilience of critical agricultural soils. “Insects represent a virtually unlimited and untapped reservoir of biological assets, with enormous opportunities for value creation. Tackling food security is just the tip of the iceberg and with our strengthened balance sheet, great partners and best-in-class intellectual property, we are strategically positioned to lead the next agricultural revolution..” said Richard HaylerCFO, Nutrition Technologies.

Since 2015, Singaporean agri-biotech company Nutrition Technologies has been creating a commercial replica of the natural decomposition process, using its proprietary growth inoculants and black soldier flies (Hermetia illucens) to turn low-grade agricultural and food waste into highly sought-after animal feed ingredients and biofertilizers. Their two-hectare production site in Johor, Malaysia, bioconverts several hundred tons of organic waste every week. The facility produces functional proteins and oils, which contain bioactive compounds that effectively improve growth performance and animal health outcomes. Over the past several years, Nutrition Technologies has conducted several trials of its products on fish, shrimp, poultry, piglets and companion animals, with significant results. Their new biofertilizer products improve soil health while naturally increasing plant resistance to disease, reducing the need for chemical pesticides. The 165-person team scaled up its operations and sold its products in national and regional markets. “We are increasing production to meet market demand and supplying essential ingredients to the domestic agricultural sector as well as boosting exports by shipping our products to Korea, Japan, Indonesia, Thailand, Vietnam, Philippines and Chile. We will also start shipping to UK and EU very soon.” said Nick Piggotco-CEO and co-founder, Nutrition Technologies.

Nutrition Technologies’ production facilities are the result of more than seven years of R&D and their strategic location in the tropics helps maximize productivity and reduce costs. Their proprietary technologies and vertical insect production system are designed to take advantage of the benefits of low energy consumption and suitability for a tropical climate. Their team developed the entire production system, which uses bespoke automated equipment to ensure strict biosecurity, zero waste and strong unit economics. With avoided emissions, their products have great potential to help meet global climate change goals.

Nutrition Technologies has doubled its success in commercializing insect-microbe systems and their approach to protecting this intellectual property has been praised by intellectual property experts and publications. “We’ve had some incredibly exciting breakthroughs over the past two years. Following the successful additions to our patent portfolio, we will launch two revolutionary new biologics into the fertilizer market that will address some of the region’s biggest crop productivity challenges..” said Martin ZorillaNutrition technologies.

Nutrition Technologies will use these funds to further expand the production capacity of its current plant in Malaysia as well as through a new joint venture project in a second country soon to be announced in South East Asia. The Company also intends to expand its R&D capabilities in Singapore; start trading in the UK and EU; and add several new patents to its existing intellectual property portfolio. “We believe our technology developments can help solve some of the world’s most critical issues and we are highly motivated to accelerate expansion as quickly as possible. Our new microbiology solution for insect production allows us to use a large pool of raw materials which eliminates the most important barrier to scale-up.” said Charlie Carterchief operating officer, nutrition technologies.

SOURCE Nutrition Technologies