Investment in Alternative Protein Foods

Industry

ConsumerRetail

Technology

RealAssets  

Company Type

Food&Beverage

PlantBasedFoods

FoodTech

AgTech

Agriculture

Livestock

Location

US

Size

+/- $105 million

Investment Type

Equity

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Helping Great Companies Grow

Overview

  • S CAP FBC is seeking $105 million to invest and/or acquire up to 15 growth stage Alternative Protein Food companies, including plant-based foods, cultivated meats, fermentation-enabled products and other alternatives to meat, seafood, dairy and eggs
  • $5-8 million per investment opportunity (controlling or non-controlling)
    • Series A or later growth companies
    • Target returns: 30% IRR (unlevered); 6-12x EBITDA target exit multiple
  • Cross-border markets in U.S., Canada, Europe, Israel, and Asia
  • Plant-based and cellular agriculture for healthy and economic global food supply
    • reduces animal suffering in agriculture
    • reduces greenhouse gas emissions
    • minimizes land, water, and antibiotic use
    • minimizes risk of contagious and foodborne diseases
  • Differentiated from other food funds
    • opportunities with reduced technology risk
    • foods systems approach to secure economic, environmental, and social sustainability
  • Management team with significant, deep experience across all aspects of food -global network to support cross-border, proprietary deal flow
SCAPFBCpres
Helping Great Companies Grow

Opportunity

  • Innovation in FoodTech means it is now possible to economically produce hyper-realistic meat, dairy, seafood, and egg analogue products without the need to raise and slaughter animals
    • transformation of the estimated $2 trillion global meat, seafood, dairy and egg market in 2020 is creating new investment opportunities
    • funding and scaling needed as the regulatory and policy framework adapts
  • Global Alternative Protein Food market is projected to reach over $67.6 billion in 2025; driven by early stage growth, particularly cellular agriculture, across all product areas
    • despite rapid growth of vegans in recent years, about 90% of market growth is driven by ‘flexitarians’ as more people switch to low meats and dairy diets
    • global alternative meat market (including cultivated meat) is projected to reach $140 billion (about 10% of global meat market) in 2029
      • sub-set of global plant-based meat market was estimated near $16.4 billion in 2019 (59% Asia; 33% US; 7% Europe; 1% other) and projected to expand at a CAGR of 15% over the next six years, reaching $28 billion by 2025
    • global non-dairy milk market projected to expand at a CAGR of 14% over the next four years, reaching nearly $38 billion in 2024
    • global plant-based egg alternatives market was estimated at $1.15 billion in 2019 and expected to expand at a CAGR of 5.8% over the next six years to $1.62 billion in 2025
SCAPFBCpres2
Helping Great Companies Grow

Solution/Strategy

  • Opportunity to invest and/or acquire Alternative Protein Food companies to help secure global food supply by addressing problems within the meat industry such as contagious diseases; animal cruelty; insecure food supply and meat shortages; and worker’s rights
  • S CAP FBC will invest (controlling or non-controlling) and/or acquire companies focused on plant-based and cellular agriculture for healthy, secure and economic global food supply
    • first-time environmental and animal protection investment platform
    • multiple cross-border targets have been identified in various stages of development
  • Up to 15 investments in early to growth stage Alternative Protein Food companies
    • reduces animal suffering in food production
    • reduces greenhouse gas emissions (GHG), and deforestation from agriculture and industrial animal farming
    • minimizes land, water, and antibiotic use
    • reduces risk to human health from contagious zoonotic and foodborne diseases
  • Management believes high Environmental, Social and Governance (ESG) rated companies tend to show higher profitability and lower business specific tail risk
    • less systemic volatility and higher valuations
  • Target portfolio companies
    • Food Systems approach
    • plant-based foods, cultivated meats, fermentation-enabled products and other alternatives to meat, seafood, dairy and eggs
    • ability to displace animal products
    • good visibility on revenues
    • fiscally responsible and capital efficient
    • profitability within a reasonable time frame
  • Leverage S CAP team’s knowledge, experience, and global network to provide unique access to cross-border, proprietary deal flow wit the most promising growth stage Alternative Protein Food companies and investment partners
FBC - Hamburg
Helping Great Companies Grow

Management

Kunal Sethi

Managing Partner, Founder

Over 20 years of experience in food, life sciences, environmental science, waste management, agribusiness and other industries. Led five food and beverage venture capital investments. Extensive background in mergers/acquisitions, asset securitizations and private equity. Started career at Metlife, later managing institutional investments at ABN AMRO, RBS and ANZ; led team to record banking revenues while maintaining its position as premier investment banks through global and corporate economic turmoil. Bachelor’s in commerce from University of Mumbai, specialization in banking at Charles Sturt University and Monetary Authority of Singapore, and specialization in Environmental Science at Southern New Hampshire University.

 

Alexandra Clark

General Partner

Expert in a wide range of policy areas. Led the Brussels lobby to increase EU public investment (Horizon) in alternative proteins R&I; secured the promotion of plant-based menus as a mandatory criteria in the EU’s Green Public Procurement criteria and removed “higher animal welfare and environmental standards than the legal minimum” from the blacklist of banned practices in the Unfair Trading Practices regulation. Eleven years in the EU capital Brussels, initially Head of the European Parliament’s Vice President’s office, helping drive the agenda to reduce animal product production and consumption in the EU. In 2014, joined Humane Society International Europe (HSI) as a food policy consultant, working with key decision and policy makers to incentivize a shift towards more plant-based diets. Organized and spoke at numerous high-profile events in the European Parliament and Commission, and other institutions and agencies, including the UK Parliament and the UN’s climate conferences (COP21 – Paris 2015 and COP24 – Katowice 2018). Hurst Grange School CIBTAC (Hons) Anatomy & Physiology; CIBTAC (Hons) Aromatherapy; School of Natural Health Science Diploma in Nutritional Therapy; Bournemouth & Poole College Business and Technology Education Council National Award in Business.

Shash Sharma

Principal

Over 12 years of experience in growth and institutional stage investing, fund-raising and portfolio management in the plant-based sector of food and beverage. Previous Head of Mergers & Acquisitions at PepsiCo for eCommerce platforms, early stage investing and strategic planning – including the acquisition of Soda Stream, Bare Snacks Co., Health Warrior and Cytosport Inc (maker of Muscle milk). Advised family offices on early stage investments, portfolio construction and scaling investments – and oversaw fundraising, deal flow, deal structuring and final negotiations. Advised Fortune 100 companies as a management consultant and as an investment banker on joint ventures, asset sales, mergers & acquisitions, and debt transactions.  MBA from Columbia University. Master of Engineering and Management (MEM) from Case Western Reserve University. BS in Mechanical and Operations Engineering from University of Mumbai.

Tatiana von Rheinbaben

Principal

Regional Manager for Europe at Refarm’d, an early stage venture that transitions livestock farmers from the dairy & meat to the production of plant-based drinks. Assistant Project Manager at the non-profit animal rights organization Surge. Previously held sales, marketing, and logistics roles at vly foods (Germany) and Grater Goods (New Zealand). Began career in alternative protein and sustainable agriculture with internships at the Fraunhofer Institute in Germany and The Not Company in Chile. Mentor for start-ups at the ProVeg Incubator since 2018. Interned at various organizations such as The Good Food Institute, Mercy for Animals, The Farm Transformation Institute, and the Cellular Agriculture Society. M.S. in Environmental Engineering & Science from Stanford University. B.S. in Molecular Biology from the University of California, San Diego.

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Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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