Below are the 10 most interesting I came across last week, paired with my thoughts on what they mean for where the industry is heading.

PS: If you are an investor or working at a corporate in food, agriculture, or biomanufacturing, do reach out. I would love to exchange notes on what I am seeing across the sectors. Reply to this email or drop me a message.

Let’s dig in.

🧈 Savor raised $32M to scale its carbon-derived fats, partnering with AAK on dairy and bakery applications

• California-based startup uses a thermochemical process to convert point-captured carbon, green hydrogen and methane into agriculture-free fats that replace butter and palm oil. It has already commercialised its CO2 butter in San Francisco, where it appears in chocolate truffles at Michelin-starred One65 and baked goods at Jane the Bakery.

• Savor’s Carbon Crafted platform turns gases into carbon chains called alkanes, then into fatty acids through controlled temperature and pressure, producing short-, medium- and long-chain triglycerides that the company says are chemically identical to conventional fats. It needs no fertile land, fertilisers or freshwater, and Savor claims the fats cut carbon emissions by 98% and require 1,000 times less land than conventional counterparts.

• The round takes Savor from a few tonnes of product a year to a couple hundred tonnes, ahead of a planned Series B to build a 10,000-tonne facility. A two-year joint development agreement pairs Savor’s conversion technology with Swedish speciality fats leader AAK’s formulation expertise and commercial infrastructure, targeting dairy alternatives and baked goods across the US and European markets.

Investors: AAK

Source: Green Queen

Thoughts 🤔

AAK’s involvement fits a broader pattern. It has been building exposure across multiple next-generation fat platforms, with partnerships already in place with Checkerspot on microalgae-derived oils and Arzeda on computationally designed ingredients.

Thermochemical, algal, and fermentation-enabled are different technical routes to producing fats without traditional agriculture, and AAK now holds a position in each. Each carries different technical and capital risks. So AAK is placing modest, structured bets (equity in Savor plus JDAs elsewhere) that give it a close view into each platform’s progress.

In return, it supplies what these companies typically lack: mature formulation capability, regulatory and quality infrastructure, and access to food manufacturers who already buy specialty fats.

This effectively positions AAK at the integration layer. However fats get produced upstream, they still have to be functional, consistent, and integrated into existing food systems, and by sitting at that interface AAK keeps the early-stage R&D risk with the startups.

🌾 Rize raised $31M series B to scale low-emission rice farming across Southeast Asia

• The Singapore-based startup runs an agronomy platform that helps smallholders adopt alternative wetting and drying (AWD), a method of cycling paddies between wet and dry phases rather than keeping them flooded. Over the past 2 years it has grown tenfold, reaching 17,000 farmers across 50,000 hectares in Vietnam and Indonesia and shipping 1,500 tonnes of low-emission rice to Europe, Canada, Australia, and Singapore.

• Rize champions AWD by buying seeds, fertilisers, and other inputs in bulk and reselling them to farmers, and it ensures the rice meets the Maximum Residue Limit standards that premium export markets require. The startup says its approach cuts emissions in half and water use by up to 30%, while raising farmer incomes by 30% without reducing yield.

• The round splits into $20M of equity and $11M of debt. The capital will scale AWD into new markets, advance carbon certification, and build AI tools for farmers and field teams. Rize aims to reach more than 150,000 farmers across 300,000 hectares by the end of the decade and to eliminate 500M tonnes of CO2e by 2040.

Investors: BNP Paribas Asset Management, the Rockefeller Foundation, Temasek, and Breakthrough Energy Ventures

Source: Green Queen

Thoughts 🤔

Rize buys inputs in bulk, handles market linkage, and ships verified low-emission rice into premium export markets. Switching farmers to AWD takes upfront capital, and Rize appears to be carrying a good part of that cost itself.

That is a working-capital-heavy model, which is why the round pairs $20M of equity with $11M of debt. Lenders lend against cashflows and assets. Impact and climate investors buy the upside.

That mix tells you what kind of business this is. One of the hardest barriers to smallholder practice change is financing. Someone has to bridge the gap between paying for inputs now and earning the low-emission return later.

Rize seems to be absorbing a chunk of that gap, and as the network scales toward 150,000 farmers, the capital it ties up should grow with it. That is the kind of cost debt is built to carry.

🥛 TurtleTree signed an exclusive deal with Novonesis to scale its precision-fermented lactoferrin and raised funding

• The Singapore-based startup makes LF+, a recombinant bovine lactoferrin produced through precision fermentation. The ingredient suits sports nutrition, women’s health, adult and elderly nutrition, and functional foods. Lactoferrin regulates iron, supports immunity, and aids gut health, and has long been supply-constrained as a scarce dairy-derived protein.

• Under the agreement, Danish biosolutions leader Novonesis will scale, manufacture, and commercialise the protein through its Human Health division, using its US production facility. Novonesis is targeting the early-life nutrition market while securing selected commercial rights for dietary supplements. The company also made a minor equity investment in TurtleTree alongside the deal.

• TurtleTree has already commercialised LF+ through its consumer brand Intentional, whose first supplement, IronKind, pairs lactoferrin with prebiotics for iron regulation, energy, and gut health. The ingredient features in Cadence Performance Coffee espresso shots and a partnership with animal-free dairy firm Strive Nutrition.

Investors: Novonesis, 21Catalyst Ventures (the VC arm of Mitsui Chemicals)

Source: Green Queen

Thoughts 🤔

TurtleTree spent years building its lactoferrin strain, regulatory dossier and early brand. Handing exclusive early-life nutrition scale-up and commercialisation to Novonesis is a clear choice about which layer of the stack it wants to own.

It keeps the strain and the pioneering GRAS win, and effectively rents an incumbent’s industrial fermentation footprint and customer relationships instead of trying to build both off a venture-backed balance sheet. In a tough funding market, this looks like the pragmatic version of a broader shift in biomanufacturing away from owning every step of the value chain.

The equity piece is the part that stands out. Novonesis is taking a minority stake in the startup whose molecule it will exclusively manufacture and sell into early-life nutrition, with Mitsui’s venture arm alongside.

For a large ingredients incumbent, that is a way to buy optionality on a leading precision-fermented lactoferrin candidate in a competitive field, cheaper and faster than building a strain from scratch or acquiring the company outright. Of course, an eventual acquisition sits in the background as one potential outcome if the partnership delivers the performance Novonesis wants.

As the production side of precision fermentation gets more crowded and making the molecule becomes table stakes, getting it into early-life nutrition brands and formulations is the harder, more valuable part.

🥚 The Every Company teams up with ADM to scale up US production of its animal-free egg protein

• The animal-free egg protein maker will produce its OvoPro ingredient at ADM’s Iowa facility at commercial scale, with the plant set to come online next year. Every says it marks the first US site with precision fermentation capacity at this scale.

• OvoPro is a recombinant ovalbumin that replicates the functionality of egg whites, working as both a binding agent and a protein-boosting ingredient across baked goods, bars, snacks, confectionery, and pasta. It has FDA clearance for sale.

• The deal comes weeks after Every quadrupled its European output through Huvepharma, producing OvoPro at a 9M-litre fermentation site in Bulgaria that runs the same feedstock and process. Every favours co-manufacturing because wholly owned plants can exceed $200M in CAPEX and carry multi-year lead times.

Source: Green Queen

Thoughts 🤔

Every is building something closer to a distributed manufacturing model than a single-site biotech operation. With Huvepharma in Bulgaria and ADM in Iowa, it is replicating the same organism, feedstock, and process across partners in two regions.

That is significant because formulators adopt OvoPro to reduce exposure to a concentrated, volatile egg supply chain and a single production site would reintroduce that risk. Multi-site capacity starts to address it, even if true interchangeability takes time as facilities are qualified.

ADM’s role adds another layer. OvoPro is landing inside an existing biomanufacturing and fermentation services business that already converts commodity inputs into tailored proteins and bio‑based materials at industrial scale. ADM has signaled that precision fermentation is part of how it plans to serve future protein demand across food and feed, not just a sustainability add-on.

This deal is a good example of a scaling model where startups standardize biology and process, and incumbents provide manufacturing infrastructure. It is a practical path for bringing precision-fermented ingredients into mainstream supply chains.

🍄 Syngenta and Groundwork BioAg partner to bring biologicals and soil carbon solutions to farmers

• The partnership has Syngenta commercialising mycorrhiza-based products and soil carbon solutions under its own brand, starting with corn, soy, cereals, and sunflower across Latin America and Europe. Groundwork BioAg takes on manufacturing, supply, digital tooling, and the full carbon program development.

• Mycorrhizal fungi form symbiotic relationships with crop roots, improving nutrient and water uptake while catalysing durable mineral-associated organic matter in the soil. That organic matter is what locks carbon away over the long term, so the same input that improves yields also builds a measurable sequestration asset.

• Farmers get two returns from one application: higher, more resilient yields and a new revenue stream from carbon credits sold under Syngenta’s label. For a leading biological crop protection company, the deal pushes biologicals further toward the centre of its portfolio and pairs them with a carbon program most input suppliers cannot yet offer.

Source: Syngenta

💪🏾 dsm-firmenich teams up with Nous to launch a caffeine-free botanical energy ingredient globally

• The ingredient, called Koncentra, is a caffeine-free botanical blend of ashwagandha, ginkgo biloba, holy basil, and oats. Nous makes it using a proprietary natural extraction process it says preserves the bioactive compounds while keeping quality consistent and scalable. It targets energy, focus, and mood.

• dsm-firmenich is positioning Koncentra as an alternative to caffeine, offering sustained performance without the jitters, anxiety, and crashes consumers associate with stimulants. In powder form it is soluble and works at a low effective dose, which the company says lets formulators drop it into food and drinks with minimal impact on taste, colour, or turbidity.

• dsm-firmenich recently invested in Nous through its ventures arm and will now fund the ingredient’s development, claims substantiation, and market validation. It plans to design clinical trials to back Koncentra’s energy and cognitive and physical performance claims, moving it from clinical development to commercialisation.

Source: Nutrition Insight

Thoughts 🤔

The Koncentra blend is familiar botanicals. Ashwagandha, ginkgo, holy basil, and oats are off-patent and buildable by many formulators. The scarce inputs are clinical substantiation, multi-market regulatory clearance, and global distribution, and those are what dsm-firmenich is contributing rather than Nous.

This is a classic dsm-firmenich Ventures-style play: take an early stake, then plug the asset into the parent company’s clinical, regulatory, and market-development machinery. The ingredient majors are increasingly buying optionality on external innovation once the science looks promising, rather than trying to invent every ingredient in-house.

The sequencing is key here. dsm-firmenich says it will now help design the clinical trials needed to support Koncentra’s energy, cognitive, and physical-performance claims, which means the commercial story is still ahead of the proof package. In a category where a competitor like Nektium’s Zynamite already carries nine human trials, that gap matters.

If the eventual data only matches what better-known botanicals already deliver, Koncentra’s edge may come down to formulation convenience and extraction know-how more than a truly new efficacy story.

⚙️ Tetra Pak launches its first industrial bioreactor for fermentation-derived food ingredients

• The Bioreactor RF targets producers using yeast, bacteria, and fungi to convert raw materials into food ingredients and is built to hold stable conditions from pilot validation through to full-scale manufacturing. It comes in sizes from 10 to 50,000 litres, with larger vessels on request, and follows Tetra Pak’s recent acquisition of Bioreactors.net.

• At the centre is a patented magnetic agitation system that removes mechanical seals, a common source of contamination risk and instability in conventional designs. Tetra Pak says it maintains power and oxygen transfer across the full size range, addressing a scale-up limitation in traditional magnetic agitators and lowering the risk of batch loss.

• It says the preassembled, factory-tested unit can cut operating costs by up to 12% and investment costs by up to 8% vs conventional industrial bioreactors. Every unit shares the same design platform, control logic, and operating philosophy, letting producers standardise operations as they scale across sites.

Source: Food Ingredients First

Thoughts 🤔

Scaling fermentation cleanly from lab to commercial is still one of the category’s hardest problems. Process conditions shift as vessels get bigger, and contamination or seal failures can still wipe out batches.

That is what makes Tetra Pak’s Bioreactor RF notable. What it offers is standardization: the same control logic, operating philosophy, and magnetic agitation platform from 10 litres to 50,000 litres, with claims of faster commissioning and lower cost.

The real value is continuity between stages. If the system transfers performance across scales, it could cut re-validation pain and process risk for producers moving from pilot to industrial production.

🥔 Aardaia raised €5M seed round to breed wild plants into new crops, starting with a protein-rich tuber

• The Netherlands-based startup invents crops from first principles rather than re-engineering commodity species. It identifies wild plants already carrying useful traits and breeds them into viable crops, using no genetic modification or gene editing. Its flagship, the aardaker, is a protein-rich tuber that pairs the productivity of a root crop with the nitrogen-fixing biology of a legume.

• Aardaia builds large genomic datasets and combines whole-genome sequencing with detailed phenotyping to predict in silico which genetics will perform before anything is planted. The startup claims the aardaker needs no synthetic nitrogen fertiliser and could produce up to 5x more protein per hectare than any current crop, a target it is still working toward.

• This year Aardaia is screening 750,000 unique aardaker genotypes, and it aims to push toward 2 million next year with the new funding. The company notes that ~95% of global calories come from just 30 species, despite more than 400,000 plant species on Earth, most never domesticated for food.

Investors: Point Nine, Astanor, Grey Silo, FoodLabs, and angel investors

Source: EU-Startups

🧠 MeNow’s AI uncovers functional ingredients from waste with two bioactives revealed as potential disruptors in the GLP-1 arena

• The startup scans the molecular makeup of botanicals and their by-products to predict the bioavailability, safety, and health benefits of compounds, drawing on a library of 60,000 organisms and more than 2 million natural molecules built over the company’s first year.

• Commercial traction is already there. A collaboration with Colgate identified an optimal plant combination for treating gingivitis and cut development time by 75%. The platform has since surfaced a compound from discarded sorghum crop residue predicted to activate SIRT1, one of the most sought-after targets in longevity science for its links to anti-ageing and cellular protection.

• The founders see the greatest weight management potential in a brown seaweed byproduct, which activates the CCK1 receptor, a satiety regulator they claim the pharma industry could never stabilise as a drug. MeNow says it acts faster and stronger than the GLP-1 pathway while boosting nutrient absorption.

Source: NutraIngredients

Thoughts 🤔

For an ingredient startup, the molecule is often not the hardest part. Novel-food approval is, and in the EU that route now averages ~2.5 years to a safety opinion, sometimes over five, before anything reaches a shelf.

That is the lens I would read MeNow’s news through: its standout candidate is a GLP-1 agonist the company says is already cleared for food use, so it starts far closer to market than a novel molecule would, even if a new use still needs signing off.

That changes what the AI is for. As the discovery layer gets more crowded, with other companies mining botanicals and side streams on the same premise, scoring candidates for regulatory readiness goes after the part of the funnel that gates revenue. Surfacing an active molecule is not novel, but doing it with a compound that starts far closer to market, from a near-free waste stream, can help it stand out.

💰 Japan’s draft $2.3T public-private investment roadmap earmarks $6.2B for new foods within a $60B food tech push

• The Japanese government has released a draft public-private investment roadmap projecting ¥370T ($2.29T) in cumulative financing across 17 strategic sectors through 2040. Four of these verticals are food tech, together accounting for ¥9.7T ($60B), with ¥1T ($6.2B) ringfenced for new foods.

• The new foods vertical, covering animal-free proteins and functional nutrition, is the smallest of the four allocations. Indoor farming leads at ¥4.6T ($28.4B), followed by land-based aquaculture at ¥2.9T ($17.9B) and food machinery at ¥1.2T ($7.4B). The plan places strong emphasis on Japan’s existing strengths in fermentation, seasoning technologies, rice flour products, and marine ingredients.

• Japan is targeting ¥3T in new food sales across domestic and export markets by 2040, first courting health- and climate-conscious consumers in Europe and the US before expanding into Asia. The roadmap follows an earlier $8B biomanufacturing fund and the country’s stated goal of becoming the most advanced bioeconomy society by 2030.

Source: Green Queen

What else I’m reading and listening

• David Beckham’s IM8 longevity supplement brand secures US$1B in funding (Nutrition Insight)

• Fuel for active nutrition: AI and tech power personalized product innovations (Nutrition Insight)

• Biotech M&A on track for best year since pre-Covid (CNBC)

• China’s Bioeconomy Is Brewing Its Biggest Wave Yet (Cam Watson)

• NutraCast: How biotechnology is powering the lifemaxxing movement (NutraIngredients)

Don’t miss your chance to attend the Asia-Pacific Agri-Food Innovation Summit and get 10% OFF with my network code. Use my exclusive partner code for 10% OFF your pass: BETTERBIO10

Learn more

Better conversations

The sharpest thinking in agrifood tech often happens off the record. My interview series brings it on the record:

• How a $2B Agtech Unicorn Builds Product - Halter’s Toby Hurley

• Ag and Climate Tech Don’t Have a Capital Problem, They Have a Capital Stack Problem - Renaissance Philanthropy’s Joshua Elliott

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• Agtech’s Real Bottleneck Is the Translational Layer, Not the Technology - Beanstalk AgTech’s Justin Ahmed

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

Browse the full archive. More conversations dropping soon. Stay tuned!

Thanks for reading!

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

For Issue #153 of Better Bioeconomy, I sat down with Toby Hurley, Director of Product at Halter, one of the most talked-about companies in agtech right now.

If you follow this space at all, you have heard of Halter, and lately for one reason. In March this year the New Zealand company raised a US$220 million Series E led by Peter Thiel’s Founders Fund at a US$2 billion valuation. That roughly doubled its valuation in nine months, after a US$100 million Series D in June 2025 at around US$1 billion.

It is one of the largest agtech rounds ever, landing while the sector’s funding has collapsed from its highs. For an APAC-born company in a category most people wrote off as niche a few years ago, that is a remarkable run.

For anyone who needs the primer: Halter builds solar-powered, GPS-enabled smart collars that let farmers virtually fence and shift cattle from a smartphone, no physical fences required. Founded in 2016 by Craig Piggott, a former Rocket Lab engineer who grew up on a Waikato dairy farm, it now serves more than 3,500 farmers and ranchers across New Zealand, Australia, and the United States, and has sold over a million collars.

Toby is the person who runs product on top of all of it. He joined in 2021 from corporate litigation, with no background in product, agtech, or farming, and today leads an org of more than 100 engineers and designers. I came to this conversation from a technical background of my own, curious about how a product like this actually gets built, the thinking behind each upgrade, and how the pipeline holds together as it moves from one market to the next.

In our chat, we spoke about what carries across very different markets, when to pile features on and when to strip them back, why owning the data matters and owning the execution layer matters more, and the whole-farm model he is chasing next.

Let’s jump in!

Underneath the collar, Halter is four systems working as one

Before the product decisions make sense, it is important to understand what Halter really is, because it is more than a collar. A team of engineers and designers builds it as four parts that work as one system: the collar, the connection, the app, and the intelligence underneath.

The collar is the foundation. Solar-powered, weather-sealed, and built to sit on an animal year-round, it carries two speakers that play directional audio and a vibration that confirms when the animal is moving the right way. That is how a farmer holds cattle inside a virtual boundary and shifts them on command, and most learn to respond within three interactions with a virtual fence.

The connection is where Halter recently pulled ahead. Collars used to rely on towers on the ranch, fine on a compact dairy farm but expensive or impossible across remote rangeland. In 2026, Halter launched direct-to-satellite collars, the first virtual fencing that works anywhere you can see the sky. The collars form a mesh network, and every few minutes one takes a turn as leader, connecting to satellite to pull down the latest fence lines and push up the herd’s location and health data before sharing it back across the rest.

The app is the control panel: a live digital twin of the ranch that shows where every animal is and how each paddock is grazing, and lets the farmer draw a fence or move a mob with a tap. Set a shift in the app, and minutes later, the cattle move in the real world.

The fourth part is the one you cannot see. Every collar streams over 6,000 data points a minute to Halter’s cloud, feeding what the company says is now more than 7 billion hours of animal behaviour data. Machine learning turns that into the cues, health alerts, and grazing insights that come back to the farmer. At the centre sits the Cowgorithm, Halter’s trademarked model that teaches cattle to respond to the audio cues in the first place. It is the main reason the virtual fence works at all.

How coming in with no farming background was an advantage

Toby joined Halter from an unlikely place: law. He had been a corporate litigator at one of Auckland’s big firms, and he treats that outsider’s start as one of his biggest advantages.

He loved litigation for the hard problems and the grind, but could not see the path: ten years to make partner, then a job that is mostly client relationships rather than the work itself. So he started looking. His path crossed with Craig, who was looking to hire Halter’s first product manager as the company moved from “build the collar, does it work?” to taking a product to market. He started as an associate product manager and grew into the role he holds now.

His first six months were spent as a sponge, talking to farmers and working out what they did and why. Then his legal training took over: find the most important problems, work out why they are the most important, and find creative ways to solve them.

The advantage was having no attachment to how things were supposed to be done. "I had never used any competitor products. I wasn't familiar with what normal looked like," he told me. That let him ask a sharper question than most insiders would: what is actually worth reinventing? Some parts of farming rest on decades of science and do not need tearing down. Others do. Coming in fresh made it easier to tell the two apart.

Most of the product travels across regions since the ingredients don’t change

New Zealand dairy and US beef ranching look nothing alike on the surface. Different herd sizes, different terrain, different economics. How much of the product needs to be rebuilt each time it enters a new market? Toby’s answer was to look past the surface, to what every one of these operations has in common.

Every Halter customer is working with the same ones: land, grass, and cattle. The land grows grass, the cows eat it, and the farmer’s job is to turn that grass into a product. A New Zealand dairy farm, a Texas ranch, and a Canadian or Brazilian operation are all solving that single problem.

Halter built its foundations around it. The collar is identical in every market, gives the same cues, and pulls the same data, and the machine learning models are built to transfer across regions rather than be rebuilt for each one.

What localises is the layer on top: the tooling, and how the mobile and web apps present things to a given customer. “For the most part, it’s really the translation layer that changes,” Toby said, not the hardware or the core systems underneath. Craig has described the same split, saying that the team reworked the software to fit how US ranchers work and pushes updates to the collars remotely, so the system keeps improving without anyone buying new equipment.

A foundational system may need to change for a new market in the future, but so far that has not happened. Every market has run on the same foundations. For a company entering several countries at once, that is a real head start, because each new market stands on something already proven rather than a blank page.

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When software is cheap, owning the data matters, and owning the execution layer matters more

The collar does a lot of the work. The other half of what makes Halter hard to compete with is the software and the data beneath it, and Toby is clear-eyed about why. Building software has become cheap, and so has AI. Pay a hundred dollars for a Claude subscription, he points out, and you can do powerful things without being a developer. When the tools are that commoditised, the edge moves to the one thing that is hard to copy: access to the data that feeds them.

Halter pulls that data from everywhere, on and off the collar. For pasture, it layers weather data, satellite imagery, and now drone data on top of what the collars gather. As Craig told TechCrunch, the health and fertility detection have sharpened as Halter has built up what is likely the world’s largest dataset of cattle behaviour.

The part Toby pushed back on was the shallow version of the data story. People picture the collar as a Fitbit for cows, a wearable that just collects data, and forget it is also a fencing and shifting device. "If you build the most unbelievably accurate optimised plan for how you should run your farm," he said, "if you can't actually go out and execute that with precision every day, then it doesn't really materialise into an outcome."

The collar collects the data and acts on it. An AirTag tells you where the cow is. A Halter collar moves her. That execution layer is what a competitor running pure analytics cannot easily replicate, and as one investor told AgFunder, the collar is only the entry point. Beef Pro is the newest thing built on top of it. Halter launched it in the US and Australia just after we spoke, and as Toby put it, it “adds the measurement and planning layer on top of the execution layer that is virtual fencing.”

‘You earn the right to simplify’ by shipping fast, then stripping back

Halter ships constantly. Craig has said the product a rancher uses today is radically different from what they bought a year ago, with new things going out every week. So how does the team keep adding capability without bloating the product away from the job a farmer bought it for? "We think of everything from a first principles perspective," Toby told me.

The north star is the short list of jobs a pasture operation has to get right to turn grass into product, and that rules most things out. Halter does not chase nice-to-haves that save a little time but do nothing for whether the business is more profitable or more sustainable.

Toby thinks about simplicity differently from most product people. The instinct is to chase a clean, elegant product from day one, and he thinks that is a trap, because you never learn what was too much or what did not need to be there. “You very much earn the right to simplify,” he said.

The approach is to nail an important problem, then ship, test, and validate as fast as possible. In the short term that can mean several things running at once, which can look like bloat, but what it is really doing is generating signal about what works. Only once you can see the full picture do you strip back what does not matter. More iterations, simpler product.

The testing is risk-tiered. Low-stakes changes, like showing data as a graph instead of a table, get shipped and tested liberally. Core systems, like measuring grass or a cow's health, run through a disciplined process on Halter's own research farm before they reach customers. Toby counts himself lucky to have beta and closed-tester groups across countries who are happy to try things and say what works, which builds confidence before any wider release.

Hardware and software get you in the door, trust is what makes the product stick

Halter is not a fully self-serve product, and may never be. Toby is at peace with that.

Every product team wants customers who buy and onboard themselves with no support, because that is what margins and scale reward. Halter is asking for something harder. Physical devices go onto the land. The humans learn to run their operation through a phone. The cows have to learn entirely new cues. That is a rethink of how a farm runs, and it does not happen unattended.

According to Craig, this is the deal: Halter is not a set-and-forget product. “You need to be willing to use the product and change what you were doing to some degree,” he told AgFunder. “If you really want the returns, you have to be willing to do some level of system change in how you allocate your land.”

So Halter goes hands-on at the start, with a dedicated team sitting alongside customers through onboarding. Toby’s read is that confident, happy farmers and happy cows are the single biggest predictor of long-term success, so that early stage is where the effort goes.

The support will shift as the company scales, but he expects the trust-building part to matter indefinitely. The hardware and software get Halter in the door. Trust is what keeps it there.

Modelling the whole farm would be the “quantum leap”

Given everything Halter has already built, I asked what he was most excited to build and what the hardest unsolved problem was. He gave one answer to both.

It comes back to the same equation: land, grass, cattle, product. The difficulty is that you are dealing with several systems interacting at once: the land and grass, the weather, the cows, and the human running it all.

The end state is a model of that entire system. Change one variable today, and Halter tells you what happens in a month, six months, a year, with economics and market pricing overlaid. “You’re not going to build that all at once,” he said, “but that is kind of the end state that I’m most excited about us building.”

It is also the least solved problem he has. If you could predict the weather six months out, know to the calorie how much energy a cow needs, and know to the calorie how much energy is in the grass, this would all be easy. But you cannot. That uncertainty is the hard part.

Halter’s bet is that more data and more investment in its systems close the gap over time. Everything it has built so far has been a big leap forward. What comes next, Toby said, is a “quantum leap” forward.

If you found this useful, consider sharing it with a founder or operator building at the messy seam where hardware, software, and biology meet.

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not reflect those of my employer, affiliates, or any organisations I am associated with.

This week:

• Stenon raised €18M Series B to scale its real-time nitrogen and soil data platform

• Parima produced tonne-scale cultivated duck on Vow’s 22,000-litre line at a 99% lower cost

• ProFuse raised $1.5M to turn its muscle-tissue platform into a discovery engine for the GLP-1 era

• The Protein Brewery added €18M to its Series B to scale Fermotein and launch in the EU

• Omni raised £11M to grow its vegan dog food and launch an Ozempic-style weight-loss supplement for dogs

• Tropic acquired Rahan Meristem to become a fully integrated banana genetics company

• And more…

Also, I joined Rhishi Pethe on his Software is Feeding the World newsletter to talk about what it takes to scale the bioeconomy, why Asia may decide its future, and how my read on agrifood tech has moved from a technology problem to an ecosystem problem over time. Check it out!

PS: If you are an investor or working at a corporate in food, agriculture, or biomanufacturing, do reach out. I would love to exchange notes on what I am seeing across the sectors. Reply to this email or drop me a message.

Below are the 10 most interesting ag and food tech stories I came across last week, paired with my thoughts on what they mean for where the industry is heading.

🦆 Parima proves tonne-scale cultivated duck at viable cost on Vow’s 22,000-litre line in Australia

• France’s Parima, the parent of Gourmey and Vital Meat, produced its cell-cultured duck at tonne-scale volume in a single run on Australian partner Vow’s 22,000-litre bioreactor, the largest food-grade cell culture vessel globally. The two companies began collaborating in 2025, and this first run took place this year.

• Parima says it hit the milestone at a 99% lower cost than earlier runs. The startup credits successive gains in cell-culture yield, the removal of the most expensive inputs such as growth factors, albumin, and insulin, and the volume efficiencies of operating at scale.

• The process ran at 22,000 litres on the first attempt with no performance loss versus smaller scales, according to Parima. The company frames the result as clearing the biological performance, process efficiency, and media-cost hurdles that have drawn scepticism. It says viable unit economics for cultivated meat are now proven rather than extrapolated from pilot runs.

Source: Green Queen

Thoughts 🤔

This is a big milestone for the sector. The line that I found most interesting is the ‘first attempt’ bit. Parima transferred its process onto Vow’s 22,000-litre line and hit tonne-scale with no performance loss versus bench, in a single run.

Tech transfer is one of the key areas where cultivated meat has historically struggled, because what works at 2,000L often falls apart an order of magnitude up. Clearing that gap on the first go is a real de-risking marker.

What also makes it interesting structurally is the split between biology and steel. Parima keeps control of cell lines, media, and process, and rents capacity from Vow, which has pivoted into a co-manufacturer with very large, food-grade reactors. That looks a lot like the division of labour that emerged in fermentation and pharma: specialised innovators on the biology side plugging into shared manufacturing platforms instead of owning the whole stack.

In a funding environment where few cultivated meat companies can finance end-to-end infrastructure, this model is a plausible path for the category to industrialise without over-building balance sheets.

🌱 Stenon raised €18M Series B to scale real-time nitrogen and soil data management platform as farmers face fertiliser price swings

• The German company makes FarmLab, a portable soil-analysis device that pairs optical and electrical sensors with AI. It maps thousands of data points in seconds, including plant-available nitrogen, soil organic matter, temperature, and moisture. The software turns that into fertiliser guidance growers can act on immediately in the field, rather than waiting on lab results.

• Stenon positions plant-level nitrogen measurement in the field as its core edge, allowing more frequent readings that account for soil variability within a single field. It claims 2-8% yield increases across corn, beans, cotton, sugarcane, coffee, and grains, plus a 20-40% average ROI on nitrogen fertiliser.

• Stenon says the platform already runs across several million acres in Europe, Central Asia, Brazil, and the US. The round funds deeper expansion in existing markets, with Brazil a priority through a longstanding partnership with input retailer Lavoro Ag. Part of the capital goes to a new product (no specific details provided), developed over several years and set for release later this year.

Investors: Pymwymic, DeepTech & Climate Fonds (DTCF), Atlantic, Oyster Bay, Founders Fund, TIME Ventures, and Bernd Hoffmann (former VP at AGCO and Claas KGaA)

Source: AgFunder

Thoughts 🤔

I see FarmLab’s defensibility sitting downstream of the device, in the models that convert its optical and impedance readings into usable soil chemistry signals. Those models are trained against lab data across diverse soil types, and both Stenon and independent studies flag calibration as a key driver of accuracy and a current limitation when it is not well tuned.

Spectral and impedance-based soil sensing have a solid track record in controlled settings but often struggle as you move into new field conditions, especially when models are tuned for one soil class and then applied to very different ones. That is why the “several million acres” is important: if Stenon can systematically fold that breadth of data back into calibration, each new region increases the robustness of its models.

Each new soil environment is both a barrier and a potential asset. It takes real work to recalibrate for Brazilian oxisols, US prairie soils, or Central Asian conditions, but once Stenon has done that work, any competitor faces a similar calibration cost before they can match field performance. The hardware is replicable, but the loop from local data to proven accuracy is where defensibility stacks up.

💪 ProFuse raised $1.5M to advance its muscle health discovery platform for the GLP-1 era

• The startup, known for media supplements that optimise muscle tissue formation in cultivated meat, is repositioning around a high-throughput platform screening supplements and therapeutics for muscle atrophy. Its lab-grown human skeletal muscle tissue screens 10,000+ molecules a week. Screening began in early 2026 and has already surfaced supplement combinations and early drug candidates.

• It grows mature human muscle fibres in 3D between pillars, which it claims are more biologically relevant than the mouse cell lines and 2D systems drug companies typically use. Engineered reporters track muscle maturation, stress, wasting, and recovery in real time. Electronic pulses measure contractile force, testing whether growth translates into function, not just size.

• The model runs on two tracks. On supplements, ProFuse is screening hundreds of GRAS molecules for food and nutrition partners that build muscle-preserving products for GLP-1 users. On pharma, it plans to develop candidates to the lead stage before handing off via R&D payments, milestones, and royalties.

Investors: Green Circle Foodtech Ventures, Siddhi Capital, Tempo Beverages

Source: AgFunderNews

Thoughts 🤔

The capability I find most interesting is that it measures muscle function at the discovery stage, not just growth. It grows human fibres in 3D, stimulates them with electric pulses, and reads how much contractile force they produce.

That lands on the open question hanging over the GLP‑1 muscle field. Many of the heavyweight muscle programmes, including work from Lilly, Regeneron and Scholar Rock, focus on the myostatin and activin/TGF‑β pathways, and a persistent doubt is whether the mass they add is truly functional muscle or mostly volume.

In a lot of these programmes, functional strength and quality‑of‑life endpoints are secondary and not always powered for clear readouts, and the most convincing gains tend to appear in patients starting with substantial deficits. As projects move from early screening into animal models, measuring muscle force with enough resolution becomes more complex and resource‑intensive than just tracking mass.

🍄 The Protein Brewery raised €18M Series B extension to scale its Fermotein mycoprotein and launch in the EU

• The Dutch fermentation company makes Fermotein, a minimally processed mycelium ingredient that packs protein, fibre, and bioactives into a single building block. The Series B extension lands days after Fermotein became the first whole-food mycelium protein to secure EU novel food approval and follows the €30M Series B closed in September 2025.

• The startup has sold out its entire 2026 capacity to US clients and expects its Breda facility to produce 600 tonnes in 2027 against confirmed commitments across the US, Singapore, and Europe. The new capital funds extra fermentation capacity, downstream de-bottlenecking, and hiring, targeting output beyond 2,000 tonnes by 2029.

• The EU push centres on active nutrition, with first customers expected to launch in Q4 2026 using Fermotein in nutrient-dense, GLP-1-compliant all-in-one shakes. Funds will also pursue regulatory clearance in Canada, Australia, New Zealand, and India, and advance clinical research into the ingredient’s longevity benefits.

Investors: ABN AMRO Sustainable Impact Fund, Invest-NL, Novo Holdings, Madeli, and the Brabant Development Agency

Source: Green Queen

🐶 Omni raised £11M Series A to expand its vegan dog food and launch an Ozempic-style weight-loss supplement for dogs

• The UK startup makes vet-formulated plant-based dog food and supplements, spanning dry foods, training treats, dental sticks, multivitamins, and pre- and probiotics, catered to pets with allergies, anxiety, and gut issues. The company says it has grown revenue 10-fold over 12 months, from £1M to close to £13M in annualised sales, and helped more than 300,000 dogs.

• Part of the raise will fund LeanPaws, a GLP-1-style weight-loss supplement teased for a 2026 launch. The company says it uses fibres and resistant starches that mirror Ozempic-like effects, plus prebiotics and probiotics aimed at fat metabolism. An estimated 1-8% of British dogs suffer from some form of allergy, a gap Omni is also targeting with novel allergen-free proteins.

• The funds will push Omni into major UK supermarkets, test the US market, expand the team, and fund clinical research to validate its products. The raise lands amid a wider boom in low-carbon pet food across Europe, as owners increasingly weigh the climate footprint of conventional meat-based diets.

Investors: IW Capital, Redrice Ventures, RootBridge Capital, Digitalis Ventures, Lever VC, Deborah Meaden

Source: Green Queen

Thoughts 🤔

Omni grew revenue 10-fold by selling vet-formulated health outcomes: gut health, allergen management, weight, skin. The recipes happen to be plant-based, but the pitch is what the food does for the dog, and that framing is what gets a product onto a supermarket shelf and reaches owners beyond the plant-based base.

LeanPaws takes that further. A weight-management supplement that mirrors GLP-1 effects, with a placebo-controlled trial behind it, attaches the most talked-about human health trend of the moment to a daily dog product. Canine obesity is large and underserved, and the Ozempic wave has done the consumer education for free, so owners already grasp what a satiety product is meant to do.

It’s a good example of how plant-based pet food goes mainstream: lead with the dog’s health, let the sustainability sit underneath. The fit between a real health need and a cultural moment that needs no explaining is hard to argue with.

🍌 Tropic acquired global plant propagation company Rahan Meristem to become a fully integrated banana genetics company

• Tropic develops improved banana varieties through gene-editing and breeding, keeping the Cavendish’s agronomic and consumer qualities while adding disease resistance, reduced browning, longer shelf life, and higher yields. Rahan Meristem, with operations across Latin America, Asia, and the Middle East, gives it large-scale production and distribution across the major banana-exporting regions.

• The deal makes Tropic the first company to span variety development, propagation, and grower supply in one platform. Rahan’s existing grower relationships hand it direct routes to market, pairing its gene-editing pipeline with proven propagation capacity at commercial scale.

• Bananas are one of the world’s most exported crops at over 20M tonnes annually, yet production relies almost entirely on the Cavendish, leaving growers exposed to Panama disease TR4. Following its recent $105M Series C and the first commercially viable new varieties in over 75 years, Tropic is now scaling global production and grower adoption.

Source: Tropic

Thoughts 🤔

Tropic’s first two banana varieties launched in 2025, and the company says demand already exceeds supply. That points to where a real constraint sits: scaling clean planting material. Commercial Cavendish are seedless and propagated vegetatively, so a new variety starts from zero plant stock and must be multiplied through tissue culture before it can occupy meaningful acreage.

So the only way to scale at commercial speed is laboratory micropropagation. The edit can be finished and agronomically proven, but the variety scales no faster than tissue-culture labs can produce disease-free plantlets and channel them to growers. Even with a $105M Series C, building that footprint across Latin America, Asia, and the Middle East from scratch would take years.

So buying Rahan removes the dominant bottleneck on Tropic’s early revenue, handing over ready-made propagation capacity, mother plantations, agronomy know-how, and grower access in the regions that matter for export bananas.

🦠 Myota raised $4.5M Series A to scale its prebiotic fibre blends and build a B2B ingredients business

• The London-based startup makes patented multi-fibre blends designed to improve gut and metabolic health. Its UK D2C business tripled last year to over 60,000 customers. The round funds a dedicated B2B sales operation across Europe and the US, a faster D2C scale-up, and further clinical research.

• The startup says most fibre supplements lean on 1 or 2 commodity fibres, and the same fibre behaves differently in each person because individual microbiomes ferment it into varying amounts of short-chain fatty acids. Myota claims its blends work across diverse microbiomes to maximise short-chain fatty acid output while cutting the GI discomfort common to high-fibre products.

• The startup positions the platform as a rare combination: clinical-trial efficacy plus usability at meaningful doses in everyday food and drink. Its gut blend cut bloating and diarrhoea in 80% of users over 4 weeks, and its metabolic blend improved insulin sensitivity in 61%. It already supplies Joe & The Juice and a coffee alternative brand, with dairy and bakery products in development.

Investors: PeakBridge

Source: Green Queen

Thoughts 🤔

Myota sells commodity fibre. The guar gum, oat and wheat fibre, inulin, FOS and GOS in its blends are inputs anyone can buy, none of them patentable. What it has built is a randomised-controlled-trial dataset showing the blends move insulin sensitivity, blood sugar, inflammation and mood, plus the formulation logic to make that work across varied microbiomes.

That distinction matters more now than it would have two years ago. The GLP-1 wave has pulled every fibre supplier toward the same pitch, and “GLP-1-friendly” claims have gone up. When the input is undifferentiated and the tailwind is shared, the one thing a B2B buyer cannot source more cheaply elsewhere is a defensible, claimable health outcome. PeakBridge seems to be betting on that layer, the same evidence-first logic it used backing clinically validated functional mushrooms.

My read is the durable value sits in the trial data and the claims it unlocks, not the blend. If the RCTs hold across cohorts and the claims survive regulatory scrutiny in each market, evidence is the moat.

🫚 Herbalife and IIT Madras open a plant cell fermentation centre to scale biomanufacturing of herbal biomass and phytochemicals

• Billed as India’s first facility dedicated to translational research in this category, the Chennai centre takes lab discoveries to pilot-scale production using customised plant cell bioreactors, aimed at startups, entrepreneurs, and industry researchers.

• The Chennai hub uses plant cell fermentation to produce herbal biomass, enriched extracts, and high-value phytochemicals at scale, pairing upstream bioreactor cultivation with downstream processing and metabolomics platforms.

• The partners frame the centre as a move to cut import dependence through domestic, sustainable production, generate IP, and build a skilled biomanufacturing workforce, reinforcing India’s wider push to become a global biomanufacturing hub.

Source: Green Queen

🧬 ChemT Biotechnology raised $4M seed round to build the intelligence layer for biomanufacturing

• The Singapore-based startup builds AI directly into the biomanufacturing process rather than into drug discovery or lab automation. Its goal is to fix the long timelines, unpredictable yields, and high costs that slow biologics production, all of which trace back to the lack of precise, tunable ways to control cells.

• At the core is CelMo, a Virtual Cell platform trained on billions to trillions of proprietary sequencing reads and lab-validated. It simulates how cells respond to manufacturing conditions, genetic changes, and stress, then maps which biological processes are switched on, suppressed, or rewired.

• In CHO cells, ChemT says the platform delivered a 50% increase in antibody output and a 40% cut in production timelines. Flagship small-molecule Chemplify applies the same method to T-cell manufacturing for cancer therapies, with the company claiming 50% faster development, 3x scalability, 60% lower costs, and 10x higher cell expansion yield.

Investors: Wavemaker Ventures, SEEDS (SG Growth Capital), Draper University Ventures, Temasek Life Sciences Accelerator

Source: PR Newswire

Thoughts 🤔

Most of the money going into AI virtual cells right now points at drug discovery. They are all trying to predict how a cell responds to a perturbation so you can find a molecule that works in a patient. ChemT trains the same class of model on a narrower target: how cells behave inside a bioreactor, and what raises titre or shortens a cell run.

That manufacturing‑first framing may prove more defensible because of the data it can lean on. ChemT is training CelMo on process datasets from real or representative production runs, not just on omics readouts tied to preclinical or clinical response. For a buyer, the metric is straightforward (yield per batch, run time, and cost per dose) and the feedback loop is a fermentation or cell‑therapy manufacturing run rather than a multi‑year clinical trial.

By contrast, discovery‑facing virtual cells are fighting for advantage against heavily funded discovery platforms and pharma R&D groups on a long‑cycle question: whether a candidate works safely in humans. Even with good modeling, proving that edge can take years, and the link from virtual cell predictions to clinical benefit is harder to make concrete for buyers.

🧫 Jellatech partners with South Korea’s Hugel to develop and commercialise cell-based human collagen

• The US-based startup’s deal with Hugel gives the Korean medical aesthetics firm exclusive global rights to its bioidentical human collagen for select aesthetic uses, marking Jellatech’s first major commercial milestone. The collaboration centres on next-generation collagen injectables and cosmetics, starting with skin-boosting applications.

• The platform produces full-length, triple-helical human collagen from cells cultured in bioreactors, bypassing animal sources, peptides, and non-native recombinant methods. Its portfolio spans a Type I atelocollagen (telopeptides removed for lower immunogenicity) and a Type I telocollagen (telopeptides intact for stronger fibrillogenesis), giving formulators complementary aesthetic and regenerative options.

• Conventional collagen comes mostly from cattle, pigs, and fish, with cattle farming tied to Amazon deforestation, and animal-derived versions struggle to replicate native human collagen’s structure, a gap Jellatech’s platform is built to close.

Source: Green Queen

CAPITAL & CONVICTION

The sharpest thinking in agrifood tech often happens off the record. My interview series brings it on the record:

• Ag and Climate Tech Don’t Have a Capital Problem, They Have a Capital Stack Problem - Renaissance Philanthropy’s Joshua Elliott

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• Agtech’s Real Bottleneck Is the Translational Layer, Not the Technology - Beanstalk AgTech’s Justin Ahmed

• What It Takes to Build a Fundable Food Company After “Peak Stupid” - Siddhi Capital’s Steven Finn

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

Browse the full archive. More conversations dropping soon. Stay tuned!

Thanks for reading!

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Last week, I sat down with Joshua Elliott, Chief Scientist at Renaissance Philanthropy and Director of its Advanced Research for Climate Emergencies (ARC) initiative.

This is the first time I have spoken to someone from the philanthropic side for the newsletter. Lately, I have been spending more time learning about the capital stack and the different funding models that support food, agriculture, and biomanufacturing.

As a VC, I think about where venture is the right fit for these sectors and where it is not. Venture is only one layer of a bigger stack. So I went into this conversation curious about the layers I understand least.

Renaissance Philanthropy is a nonprofit that designs, incubates, and runs time-bound, thesis-driven funds led by domain experts, with a stated goal of building the equivalent of venture capital for public good. The model is moving quickly. The organisation has mobilised $533m in the first two years, $268m of this directly for their own programs and funds, with $265m unlocked for other organisations. A meaningful part of that work is in agriculture and climate.

Joshua has watched the funding ecosystem from different angles. He took a PhD in theoretical particle physics, then spent a decade doing computational climate economics and crop modelling at the University of Chicago and Argonne National Lab, where he co-founded a centre for climate and energy policy and started the Global Gridded Crop Modeling Intercomparison Project.

Along the way, he ran his own ag-focused climate informatics startup, Praedictus Climate Solutions, as CEO. He then spent six years at DARPA as a programme manager, where he programmed close to $600 million in federal R&D, before a stint in climate philanthropy and his current role at Renaissance Philanthropy. He has been a startup founder, an academic grantee, a government funder, and now a philanthropic investor.

In our chat, we spoke about what that full-stack vantage point teaches him about how climate and ag tech get funded, when philanthropic capital is the right tool for a founder, how Renaissance Philanthropy turns philanthropic dollars into commercial companies, and what the capital stack could look like a decade from now.

Let’s jump in!

The sector has enough capital, but it just refuses to work together

Joshua’s organising idea is that climate and ag tech do not suffer from a shortage of money. They suffer from money that operates in silos. Venture, government, philanthropy, and project finance each optimise for their own logic, and nobody coordinates them around the path a single technology has to travel from lab to commercial scale.

A venture investor sprays and prays, a Series A fund only looks at Series A, and philanthropy, Joshua says, is sometimes the worst offender. “I’m a philanthropic investor, so all I think about is philanthropy. We silo all these forms of capital. They don’t work together.” The fix is to treat the whole stack as one coordinated toolkit instead of four silos optimised in isolation.

This goes wrong most often when the sector reaches for venture capital too early, for technologies that venture capital was never built to carry. Venture economics run on a low hit rate and a few massive winners, which is rational for a fund but brutal for a technology that just needs more time.

The casualties are not the bad technologies. “There’s a lot of potentially promising technologies that end up getting abandoned not because they don’t have promise,” he told me, “but because they couldn’t scale fast enough.” Joshua is the first to admit he does not have a tidy replacement model.

What he does propose is simpler: bring in patient capital earlier, and you give a good technology time to mature before the venture clock starts running against it.

Make the green thing the cheap thing, not the subsidised thing

Joshua calls himself a philanthro-capitalist, especially in climate, because for most climate tech, the road to real impact runs through scalable, profitable, market-rate products. He has watched the best version of this up close, working with family offices that run philanthropy, impact investing, and market-rate investing under one roof.

What he learned from them is the whole model in miniature: the same backers walk a single technology across all three pockets, using philanthropy to push it to the point where the impact investing team will fund it, then accelerating it until the market-rate team will. Each handoff is the proof. Philanthropy’s job is to hand the next investor down the line something they can back.

His worked example is cement, because it shows philanthropy doing something venture cannot. At the factory gate, he argues, the problem is (at least in part) already solved. There are cement products that are cost-competitive, 50% lower carbon, stronger, and longer-lasting than the traditional kind.

But they are not everywhere because of the pile of frictions sitting downstream of the factory: missing building standards, transport departments with no training to specify the new product, higher insurance, and higher capital costs.

Each adds an implicit cost that the technology itself does not. So Renaissance Philanthropy built a program that addresses all of those frictions at once. “We’ve created a systemic approach to look at all of those little downstream things that need to be solved, and then solving them all together and in tandem,” he said. That is field-building, the full-stack systems work Joshua and his co-authors lay out in their Philanthropy 2.0 essay, where one strategy spans science, policy, market-shaping, and adoption instead of stopping at the lab.

The goal underneath all of it is to make the clean option the cheap option, because that is the only version that lasts. Lean on a green premium and a subsidy, and the industry crumbles the day the policy changes.

He points to solar as proof that the durable path is cost, not subsidy. It became the world’s cheapest and fastest-growing source of energy, he points out, not because anyone was paying a green premium, but because four decades of work finally drove the price below fossil fuels.

The same logic should apply everywhere else. The way to win is to make the next cement plant, steel plant, or geothermal build cheaper as a low-carbon project than as a traditional one, so the economics make the choice for you.

The problem is time. “We cannot afford for all these new technologies to take the same four decades that solar took to move down that cost curve,” he said. That impatience is the whole reason for using philanthropic capital to push a technology down the cost curve faster, rather than waiting for the market to get there on its own.

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For startups, philanthropic capital fits two specific moments

Philanthropic capital is rarely the first source of funding a founder thinks of, so when does it fit?

The first is at pre-commercial proof. If you have a real result but are three to five years from commercialisation, the Focused Research Organization is a strong option: a time-bound nonprofit startup funded in the tens of millions to prove one big thing, rather than the few million an academic lab scrapes from NSF (US National Science Foundation) grants.

He pushed back on the fear that founders have that taking philanthropic money means surrendering their moat. People assume open IP will ruin them, “whereas what they find later is that a large fraction of their moat is based on the tacit knowledge they’ve acquired along the way, not the specific admixtures or blueprints.” The know-how in the team’s heads is usually the more defensible part.

He also pointed founders to a growing set of government capital sources that, especially in the US, are far friendlier to commercialising IP than philanthropy is and are worth weighing alongside it.

He also flagged a related trap founders underrate: scaling is not just an engineering risk. “There’s actually a massive amount of new science risk that emerges in the process of trying to scale,” he said, “particularly in biology.” That is the risk patient, pre-commercial capital exists to absorb.

The second moment when philanthropic capital comes in is later, at the first demonstration plant, where the hurdle is the cost of money. Ask for capital to build the 200th traditional cement plant in a region, and lenders barely blink. Ask for capital to build the 3rd low-carbon plant, and you pay a premium, simply because the technology is less familiar.

Build in Africa or India, and the premium gets worse. “You can’t pay 16% interest rates on the capital you need for your demonstration plant,” he said, and most of the time, the math just collapses.

This is where a small amount of philanthropic capital can move a large number. By guaranteeing part of a loan, philanthropy absorbs some of the lender’s risk, which lets the lender drop the interest rate to something the project can carry. The capital is not spent, it is pledged as a backstop, and most of the time, it is never called.

The smart version of this taps money that is already sitting still. Joshua points to the roughly $250 to $300 billion parked in US donor-advised funds, charitable money earning 5 to 7% while it waits to be given away, a pool he expects to grow toward a trillion dollars as new AI wealth lands.

Renaissance Philanthropy runs a program, Tertiary Impact Capital, that leaves those funds untouched and simply uses them as the guarantee behind clean-tech loans. The donor’s money keeps earning its return, and the same dollars lower the cost of capital for a demonstration plant. “If you package things right,” he said, “you can get a pretty attractive set of investments and make a massive impact with a relatively modest amount of capital expenditure.”

When should a breakthrough become a for-profit company versus a public good?

Joshua is using philanthropic capital to spin out for-profit companies, which sounds like it should contradict the public-good rule. It does not, because the structure flexes to the situation. He has at least two live deals, each built differently on purpose.

The first is the partnership with Deep Science Ventures, the UK deeptech venture creator, with whom Renaissance Philanthropy built the Climate Emergencies Resilience Lab. In March, the two unveiled a venture creation project aimed at priming resilience in crops, a category meant to move past slow, static genetic modification toward resilience that can be tuned to climate risk.

Here, Renaissance Philanthropy takes equity at a fair market return. “Someday in the future, that equity will hopefully scale and be worth money, and then it can be returned to its philanthropic accounts, where it can be used to do even more philanthropic good,” he said. The company keeps its IP, because the philanthropy owns a fair share of the company.

The second, a pre-seed methane abatement startup, is structured as a concessional loan, and the asymmetry is the whole design. “If they succeed and scale, they will pay the capital back. If they don’t, then we made a philanthropic grant to something that didn’t produce a scalable for-profit company, so it’s fine.”

The downside is a grant, and the upside recycles into the next bet. The decision about whether something becomes a company follows the mission and the structure that gets the technology built.

The hard part is convincing people to deploy philanthropic capital

Two years in, the thing that has turned out to be harder than Joshua expected reframes the whole sector’s narrative away from a money shortage.

The hard part, he said, is convincing people to deploy philanthropic capital at all. “You look at the amount of capital that’s out there, and you think, oh, this can’t be that hard to do fundraising,” he said. “But it is, in fact, a lot harder than you think.”

Foundations pledge to spend $10 billion over a decade and are only three billion in seven years later. Philanthropy remains a network-driven, trust-based process, and for good reason: there is no single metric of quality the way there is in for-profit investing. That missing metric is, for Joshua, the root structural problem, and it is the argument he and Renaissance Philanthropy CEO Tom Kalil lay out.

For-profit investing specialised dramatically after the 1950s, from generalist banks into venture, then hundreds of fund types. But philanthropy did not do that. “We still use basically the model that Rockefeller developed in the 1930s,” he said, noting that the Gates Foundation and the NSF have each landed at roughly 2,000 staff giving away roughly $8 billion a year, the same basic architecture under different logos.

Kalil frames the gap as a shortage of institutions, not capital. Joshua’s own prescription follows from it: a GP/LP model, where philanthropists act as limited partners who build a portfolio of expert-led funds rather than vetting every grant themselves. “If philanthropists would think of themselves as more portfolio allocators rather than the ones selecting every single investment,” he said, “we would be much better able to scale philanthropic giving at the level that’s needed.”

Capital that follows the technology all the way to scale

If the Renaissance Philanthropy model works, what does the ag and climate capital stack look like in a decade? Joshua’s view is that philanthropic capital will be working across the whole stack rather than only to the left of the factory.

It will treat the cost of capital as a problem philanthropy is built to solve, especially the over-conservatism of capital in emerging markets and the Global South. It will write the small-ticket cheques that venture, even impact venture, cannot justify, the deals where the opportunity is real in places like Africa, but each one is too expensive to evaluate relative to its size.

Above all, it will fund the part everyone skips. Joshua’s frustration from his academic years was watching project after project build a clever solution, a new drought-tolerant seed or distributed fertiliser system, prove it in one town, declare victory, and walk away. “Without thinking about the incredible amount of work and capital it takes to scale that solution across tens or hundreds of thousands of towns across a region or a continent.”

That is where his critique lands closest to home. The valley of death in food and ag is not only a venture problem. It is a coordination problem across every pool of capital that could help cross it. Closing that gap is not about inventing the next drought-tolerant seed. It is about building capital that sticks around long enough to carry the good ones all the way to scale.

Want to connect with Joshua?

If this approach to philanthropic capital resonates with you, and you are a philanthropist or funder looking to deploy it, Joshua and the team would love to hear from you at info@renphil.org

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not reflect those of my employer, affiliates, or any organisations I am associated with.

This week, Vivici pulled €12.5M from the EIC to scale its cow-free whey, while Helaina pushed its precision-fermented breast-milk protein into kids’ multivitamins. Rainbow Crops raised €9.7M seed round to scale AI-guided multiplex gene editing, and The Every Company quadrupled its egg-protein capacity on a pharma partner’s idle fermenters.

On the institutional side, A*STAR and NUS launched a synbio joint lab in Singapore, Döhler acquired Nukoko’s fava-bean chocolate, and Anterra closed $100M to rewire the food system rather than reinvent it. I also dig into what agtech can learn from biotech about VC returns.

Below are the 10 most interesting ag and food tech stories I came across last week, paired with my thoughts on what they mean for where the industry is heading.

🥚 The Every Company quadruples precision-fermented egg protein capacity with Huvepharma after 550% hike in orders

• The animal-free egg protein maker has expanded its partnership with pharma manufacturer Huvepharma to scale OvoPro production fourfold, tapping subsidiary Biovet’s 9M-litre fermentation facility in Bulgaria. The precision-fermented egg white protein already features in products at Walmart, Target, and Amazon.

• The startup says it secured annual orders worth 55% of its total 2025 order volume in just the first four months of this year, driven by B2B retail, e-commerce, and foodservice adoption. It had already doubled capacity at the start of 2026 with plans to double again next year, but the surge accelerated that schedule.

• OvoPro is positioned as a hedge against a volatile egg supply chain hit by bird flu and price spikes. The company says it is shelf-stable for up to 24 months, needs no cold chain, and is priced competitively with or cheaper than battery-caged commodity eggs on a cost-in-use basis.

Source: Green Queen

Thoughts 🤔

One of the biggest bottlenecks for scaling biotech-derived food ingredients is the lack of fermenters at a scale that justifies the cost. The space badly needs more food-grade capacity to support scale-ups.

A greenfield food-grade plant runs hundreds of millions of dollars with multi-year lead times, roughly the cost structure that sank the first full-stack precision fermentation (PF) wave. Pharma fermentation already carries EU and US FDA GMP approvals, sits at industrial scale, and is sometimes underused. Renting into that base, then converting a site as volumes justify it, sidesteps both the CAPEX and the time. It works only because food protein can clear pharma-grade process bars, not the reverse.

Expect more food PF to scale on someone else’s depreciated steel rather than its own balance sheet. The catch is that this only works where pharma capacity is both idle and willing to convert to food use. That pool is smaller than the 9M-litre headline suggests, and once a site goes fully dedicated to one customer, both sides inherit the single-tenant risk that makes fermentation capacity so hard to underwrite in the first place.

🧬 Rainbow Crops raised €9.7M seed round to scale AI-guided multiplex gene editing for complex crop traits

• The Belgium-based startup, spun out of research institute VIB in 2025, uses AI to predict which gene combinations drive complex traits like drought tolerance and higher yield, then applies multiplex editing and breeding to create populations of edited plants for high-throughput screening. The traits it targets are polygenic, controlled by networks of interacting genes rather than one.

• Rainbow Crops claims an edge in multiplexing, editing 50-100 genes at a time rather than a handful, and is moving beyond simple knockouts toward tuning regulatory elements to dial gene expression up or down. It says its approach generates many edit combinations from a single transformation event, easing the burden in crops that are hard to transform or slow to regenerate.

• The model is to license platform output to seed and breeding companies with strong germplasm but limited editing capability. Rainbow Crops earns royalties on commercialised varieties plus upfront R&D fees and milestone payments, and expects to announce a corn collaboration soon.

Investors: LIFTT EuroInvest, AIF (Agri Investment Fund), PINC, VIB, Maia Ventures, Corteva Catalyst

Source: AgFunderNews

Thoughts 🤔

What I find interesting about this round is how much VIB de-risked the company before venture money came in. By the time investors wrote the cheque, the science was already well advanced and validated in greenhouse and early field trials. That is uncommon at seed stage and worth paying attention to.

Rainbow did not spin out in 2025 as an idea and then go raise. The yield-gene science was matured for years inside VIB, an entrepreneur-in-residence was brought in specifically to commercialise it, the company gets access to VIB’s transformation and automated phenotyping facilities that screen up to 16,000 plants at once, and a Gates Foundation grant landed three months before this close. Those are resources a startup at this age rarely has, and the result looks unusually mature for its stage.

Investors are pulling back from early-stage capital. A studio that absorbs the science risk upstream is one way to make a young company look fundable in a market that no longer wants to underwrite raw technical risk.

🥛 Vivici secured €12.5M from the European Innovation Council to scale its cow-free whey proteins

• Vivici makes animal-free dairy proteins via precision fermentation, sold under its Vivitein brand. The Dutch startup secured €12.5M in blended grant-and-equity finance through the EIC’s 2026 accelerator, one of 38 businesses picked from 87 proposals. The capital expands supply and market access for its whey ingredients.

• Its flagship Vivitein BLG is a bioidentical beta-lactoglobulin prized for gelling, foaming and binding. It carries all essential amino acids, runs clear and neutral in flavour, and works at up to 50% by weight in meal replacements, functional drinks, nutrition bars and dairy analogues.

• Earlier this year, Vivici added Vivitein LF, an animal-free lactoferrin at 95% purity targeting gut health, recovery and women’s wellbeing verticals. The company has tested its process in a 75,000-litre fermenter and works with co-manufacturers in Europe and the US for commercial-scale output.

Source: Green Queen

Thoughts 🤔

Great to see Europe putting public money behind fermentation scale-ups. Vivici added a blended EIC grant-and-equity package a year after its Series A, and in the same week Solar Foods drew €77.8M from Business Finland for its second factory.

The instruments are not identical, Solar Foods is roughly half repayable IPCEI-linked debt while Vivici’s is grant plus patient EIC Fund equity, but the direction is shared: European public capital is stepping into the part of the curve where private venture has pulled back.

That part is scale-up, and it is capital heavy. Commercial-scale fermenter capacity costs a lot, and the climb from a validated process to positive unit margins can run years. Grants and concessional equity are built for exactly this, longer timelines and softer return expectations.

🏛️ EU adopts product-based gene-editing rules, clearing a faster path to market for NGT crops

• The European Parliament has adopted new rules for plants made with new genomic techniques (NGTs), finalising a process that began with a provisional Parliament-Council deal in December 2025. The reform shifts the EU from process-based to product-based oversight, assessing plants on their genetic traits rather than the technique used to make them.

• A two-tier system splits the field. NGT-1 covers edits comparable to conventional breeding, which, once verified, are treated like conventional crops, listed in a public EU database, and labelled as NGT-1. Herbicide-tolerant and insecticidal traits are excluded. NGT-2 covers more complex modifications and stays under existing GMO rules, including risk assessment, authorisation, and full traceability.

• The framework aligns the EU with the US, Brazil, and parts of Asia, where gene-edited crops already reach markets, and applies equally to domestic and imported products. It validates the regulatory philosophy long pushed by Bayer, Syngenta, and Corteva, preserves the option to patent NGT innovations with safeguards on market concentration.

Source: AgNavigator

Thoughts 🤔

One way I’m reading the EU’s NGT decision is through the question Europe asks before letting a plant in.

The old GMO regime asked how a plant was made, so using a new genomic technique triggered strict authorisation no matter the result. The new rules ask what is in the plant instead. NGT-1 edits, the kind achievable through conventional breeding, get verified on their genetic characteristics and then treated like conventional crops.

The EU was one of the last major agricultural market still regulating by process while the US, Brazil, and parts of Asia had moved to product-based pathways. Traits cleared abroad still hit a separate, slower hurdle in Europe.

The catch is that judging a trait on its characteristics does not automatically make it quick to place. The whole fast-track promise rests on how NGT-1 verification actually runs once the secondary legislation defines it.

If verification is quick and predictable, the product-based question becomes a fast lane. If it turns into a slow case-by-case assessment, the shift is real on paper but the timeline advantage is smaller than the headline suggests.

💊 Helaina’s precision-fermented human lactoferrin moves into kids’ multivitamins via Vital Nutrients

• US supplements brand Vital Nutrients has launched Mighty Multivitamin Without Iron, a gummy for children aged 2 and up built around effera, Helaina’s recombinant human lactoferrin. The ingredient is paired with six fruit and vegetable concentrates, minerals, and vitamins A, B, C, D and K1.

• Lactoferrin is a whey protein found in human breast milk and bovine colostrum, with far higher concentrations in the former. Helaina uses precision fermentation to make a bioidentical version of the human protein, sidestepping the supply limits of dairy-derived lactoferrin.

• The launch pushes precision-fermented breast milk proteins into children’s nutrition, a new application alongside Helaina’s existing targets across functional foods, longevity, women’s health, and infant formula. The product is free of the top 9 allergens, gelatin and pectin, and Vital Nutrients says adults can take the meltable tablets too.

Source: Green Queen

Thoughts 🤔

Clearing the steepest trust bar in supplements, children’s nutrition, with a recombinant breast-milk protein is a strong vote of confidence. It also sits one step below the highest-stakes application of all, infant formula, which is exactly where Helaina is heading after signing a Nestlé formula deal with effera this month.

A kids’ multivitamin seems like a controlled, low-dose way to normalise a human-identical milk protein in a child-facing product before the formula conversation gets real. If the kids’ products gain shelf trust without safety or labelling friction, it strengthens the case for the formula play.

🍫 Döhler acquired Nukoko to scale cocoa-free chocolate made from fava beans

• The German ingredients giant has bought the UK startup behind a cocoa-free chocolate built on fava beans, two years after first investing in the company. The deal folds Nukoko’s approach into Döhler’s wider plant-based ingredients portfolio, pairing the startup’s biotech platform with Döhler’s flavour and formulation expertise.

• Nukoko puts fava beans through a biotransformation and controlled fermentation process before drying, roasting, and grinding them into a cocoa-style powder. It claims the product generates 90% fewer emissions and carries 40% lower sugar with no hit to taste, alongside higher protein and fibre.

• Cocoa prices have swung violently, and Döhler is positioning fava-bean chocolate as a hedge against that volatility for confectionery makers. The acquisition lets Döhler offer customers a ready alternative across formats from confectionery to baked goods and ice cream, moving the technology from early-stage concept to market-ready ingredient at scale.

Source: Green Queen

Thoughts 🤔

Döhler invested in Nukoko two years ago at pilot stage, watched the process de-risk through its transition toward 10,000-litre batches, then bought the whole thing once the technical risk was largely retired. That is corporate venture used as a staged option on process IP.

It works because Döhler already had everything except the process. It is deeply vertically integrated across pulses, seeds, and nuts, with the distribution and formulation muscle to take an ingredient to market. What integration in raw materials does not give you is a fermentation-and-roasting route that turns fava vicilin into chocolate notes.

Döhler clearly bought more than that, a brand, a patent-pending portfolio, a team, and a B2B pipeline, but the piece I find hardest to build in-house, and the one that looks most like the prize, is that biotransformation. On that read, the acquisition takes a route off the table that rivals would now have to build themselves.

This is more a template than a chocolate story. Expect more ingredient majors to run CVC stakes explicitly as acquisition options on de-risked process IP, leaving founders a clean exit and the major a capability it can keep in-house.

🤔 What can agtech learn from biotech about VC returns?

• Michael Lee, managing director at Syngenta Group Ventures, argues agtech should borrow lessons from biotech, a structurally similar but far larger VC arena. Healthcare is ~17% of US GDP vs agriculture’s ~0.9%, a 20:1 gap that shows up across exit metrics. Biotech has 1,000+ buyers, while agtech relies on a handful of agchem and tractor makers, collectively closing just 1-2 deals over $20M annually.

• Plotting deal frequency against deal value, Lee finds agtech M&A clusters tightly in the $30M-$100M band before dropping off sharply, leaving almost no mid-market and no path to large standalone exits. The top 20 non-SPAC agtech exits over 20 years averaged $400M. Back-solving from that with 3x step-ups implies tight round valuations: ~$8M pre at seed, ~$25M at Series A, ~$100M at Series B. Inflated intermediate valuations, he says, are toxic to both returns and company survival.

• Lee flags vertical farming and row-crop genetics as poor fits for VC, citing airline-like economics of high CAPEX, long timelines, and weather and commodity volatility. His prescription: laser focus on entry valuations, avoid companies that have raised over $50M, look for pre-acquisition collaboration signals, and actively widen the buyer universe into food, climate, fintech, and AI-enabled players.

Source: Ag Tech Navigator

Thoughts 🤔

Biotech and agtech are, in my view, very different underneath the similarities Michael starts with. Long timelines, regulatory gauntlets, efficacy trials: the surface case for treating them alike is real. But the one variable that sets valuations runs the opposite way in each. Health is inelastic demand. Food is elastic and commodity-priced.

Michael gives the mechanism in a single line that deserves more weight. A 10% yield gain is priced at the value of the extra yield minus any change in input cost, a hard arithmetic ceiling. A 10% improvement in an oncology outcome is priced at whatever someone will pay to live.

One number is bounded by a commodity price the grower does not control, the other by willingness to pay with almost no ceiling. That is why biotech sustains a premium agtech has not been able to command at scale. Everything downstream follows from that gap.

You might think the ‘food is medicine’ shift rescues this from above, with consumers paying more for better food. But that is a different buyer at a different layer. The grower buying a seed trait is not the shopper buying the product, and where a wellness premium does exist, it has mostly stayed downstream with the brand rather than flowing back to the trait or the input that created it.

🤝 A*STAR and NUS launch a synthetic biology joint lab to move Singapore’s bio-based research closer to market

• The new joint lab pairs A*STAR’s Singapore Institute of Food and Biotechnology Innovation, which brings bioprocess development and scale-up know-how, with the National University of Singapore’s synthetic biology group, which contributes fundamental science and talent development. Its initial focus is nutrition and consumer care, with broader applications across advanced materials and health.

• The lab targets three areas to speed up translation: AI-guided enzyme and pathway engineering to shorten development timelines, industrially deployable microbial platforms to make complex molecules at scale, and access to novel bio-based compounds for ingredients and functional applications. It will work with companies to co-develop, test, and validate sustainable alternatives to conventional chemical manufacturing.

• Beyond R&D, the lab doubles as a training ground for synthetic biology, metabolic engineering, and industrial biomanufacturing talent through joint supervision, internships, and fellowships. Demand for these skills is rising as more companies build in-house biotech capabilities.

Source: NUS News

💰 Anterra Capital raised a $100M first close on Fund III to “rewire” the food and agriculture system

• Anterra is an agrifood VC that backs companies fixing the existing food system rather than new categories. The maths drives the thesis: the meat industry is worth close to $2T, the alt-meat market $10-20B. Founding partner Maarten Goossens argues there is more value in rewiring the bigger system than in reinventing the smaller one.

• The fund targets $200M total and has already made 2 investments. One is veterinary biologics company Animerra, which Anterra founded and funded in-house. The firm builds startups from within its own walls, a model that produced 3 companies in Fund I and 7 in Fund II, with a target of 7-10 for Fund III.

• Anterra is also leaning into vertical AI, backing Anchr, an agentic platform tackling inefficiencies across the seafood chain from vessel to restaurant. Goossens says the firm benchmarks against general VC rather than niche agrifood peers, and claims Funds I and II are delivering top-tier returns.

Source: AgFunderNews

🐄 Deco Labs upcycles canola oil waste into a plant-based albumin replacement that cuts cultivated meat’s most expensive media cost

• The Tufts spinout’s cAlbumin is a protein isolate extracted from rapeseed meal, a canola oil byproduct normally destined for livestock feed. It drops in for both bovine serum albumin and recombinant versions, the single most expensive ingredient in serum-free culture media.

• Conventional albumin and transferrin together add nearly $100/kg to cultivated meat production. Deco Labs says cAlbumin contributes ~$0.02 per litre of media at scale, works at lower concentrations, and has outperformed both recombinant and bovine albumin across more than a dozen cell types.

• GFI estimates the industry could need up to 10,000 tonnes of albumin by 2030, volumes that don’t yet exist. Deco is validating every batch for 10+ cell doublings before shipping and is already sampling cultivated meat, seafood, leather, and collagen firms, plus cell therapy and vaccine manufacturers. A pipeline of amino acid (cAminos) and FGF-2 (pFactor1) replacements is in development.

Source: Green Queen

Thoughts 🤔

Some companies are trying to engineer albumin out of the process entirely, adapting cells to grow without it. Deco is making the opposite bet. Its thesis rests on the claim that albumin-free cells underperform at scale, so the smarter move is supplying a cheap drop-in replacement rather than removing the protein company by company.

That is what makes the supplier position attractive: a rapeseed isolate at ~$0.02/L sells into most cell lines, where removal has to be re-solved by each producer.

cAlbumin is being sampled by cell therapy, regenerative medicine, and vaccine manufacturers, not just meat and seafood startups. With cultivated meat funding down and companies shutting down, tying the company to that market alone would be fragile. Biopharma media is growing the other way. The biopharma-adjacent demand likely carries Deco near-term, with cultivated meat as the upside.

CAPITAL & CONVICTION

The sharpest thinking in agrifood tech often happens off the record. My interview series brings it on the record:

• Agtech’s Real Bottleneck Is the Translational Layer, Not the Technology - Beanstalk AgTech’s Justin Ahmed

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• What It Takes to Build a Fundable Food Company After “Peak Stupid” - Siddhi Capital’s Steven Finn

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

• How Agrifood Tech Investing Is Shifting and Where Value Will Be Created - PeakBridge’s Yoni Glickman

Browse the full archive. More conversations dropping soon. Stay tuned!

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This week covers SWARM and Leaf, both betting that the operational and data layer beats the model, Aphea.Bio’s bioinsecticide deal with Bayer, Tate & Lyle widening its plant-cell sweetener work just before its Ingredion takeover, Neion Bio turning eggs into biologics factories, and the case for biomanufacturing as strategic infrastructure.

Below are the 10 most interesting ag and food tech stories I came across last week, paired with my thoughts on what they mean for where the industry is heading.

🥚 Neion Bio raised an oversubscribed $23M Series A to scale its egg-based biologics manufacturing platform

• Neion Bio uses precision genetic engineering to turn chicken eggs into factories for complex, glycosylated proteins. Its Raptor™ platform restricts recombinant protein production to the egg itself, leaning on a vessel evolution and selective breeding have already optimised to produce and stabilise large quantities of protein in a sterile environment.

• The company says the approach can produce biologics at meaningful scale within days, with advantages in scalability, resilience, capital efficiency, and cost over traditional bioreactors. It also claims the platform can express difficult-to-make proteins that have resisted conventional manufacturing, opening new product categories.

• Proceeds fund pipeline expansion across biosimilars, innovative medicines, critical reagents, and animal health. The raise follows Neion’s March 2026 emergence from stealth and a first commercial co-development and supply deal with a major pharma company, a multi-product biosimilars collaboration for global markets.

Investors: Caffeinated Capital, Digitalis Ventures, Ensemble VC, Trust Ventures, Haystack, Basis Set Ventures

Source: BioSpace

Thoughts 🤔

The framing of the round is interesting. Both the CEO and Caffeinated Capital anchored the pitch on domestic supply chains and access to critical medicines, and that framing carries more weight now the BIOSECURE Act became law in December and biomanufacturing is treated as a national security domain. An oversubscribed round, in a market that has lost more than 200 biotechs to cash problems in four years, seems hard to explain on biosimilar economics alone.

A flock is domestic, distributed, and does not need a $500M facility, which maps onto the reshoring thesis neatly. I suspect the capital here is following the policy category as much as the cost curve, and if so, the framing that cleared this round also raises the bar later.

Worth noting the biology is not new. Alexion’s Kanuma was approved out of transgenic hen egg whites back in 2015, and egg-based production stayed a one-drug curiosity for the decade since while everyone kept building CHO capacity. That proven biology is reassuring for regulatory risk. This could become a platform if the differentiator is repeatability across proteins rather than the egg itself.

🌾 Leaf Agriculture raised $13M Series B to standardise farm data and power AI tools across agriculture

• The US startup cleans and structures fragmented farm data so partners can build AI tools on top of it. Field devices store information like farm boundaries, product names, and agronomic practices in incompatible formats and calibrations. Leaf resolves this so the data is usable across pre-planning, planting, growing, harvesting, and selling.

• Leaf positions itself as the infrastructure layer for agriculture, comparing its role to Stripe in payments or Plaid in banking: invisible to farmers but mission-critical for the companies building on farm data. The company says it processes data from over 20% of global acres annually, working with crop insurers, ag retailers, input companies, food processors, and commodity traders.

• The funding lands in a tough farm economy where buyers are pushing to optimise operations and adopt AI. Leaf says the payoff shows up downstream. Crop insurance partners pay out claims in days rather than months, retail partners run field-specific seed and chemical models, and compliance partners open new revenue streams while saving farmers hundreds of hours of manual data entry.

Investors: Leaps by Bayer

Source: Leaf Agriculture

Thoughts 🤔

The round is a useful marker for where the binding constraint on agricultural AI sits. It is not the model.

A frontier system cannot just ingest farm data and produce useful agronomy, because that data arrives in incompatible OEM formats, proprietary calibrations, and inconsistent conventions. Reconciling it means knowing what a planting prescription, a harvest pass, or a soil result actually means. That is ag-specific knowledge encoded into the data layer, and the part horizontal AI does not bring with it.

A $13M Series B also seems modest for a company touching 20% of global acres, though that is not a knock and I am not encouraging companies to raise money they do not need! A business at that footprint pitching itself as critical AI infrastructure could plausibly command a larger growth round in a friendlier market. A small, strategically anchored cheque suggests the capital is buying ecosystem positioning as much as funding scale-up.

🤖 SWARM Engineering raised $10M to bring real-time AI decision-making to agri-food operations

• The San Francisco-based startup’s platform takes in structured and unstructured data from ERP systems, spreadsheets, and real-time feeds, then runs scenario analyses across thousands of variables in minutes. Customers reach full operational use within 8-10 weeks, versus the 18-plus-month timelines of traditional ERP rollouts.

• The platform is built on what the company calls an “operational ontology” of agri-food and manufacturing, embedding industry-specific decision logic, constraints, and variable relationships into its AI models. SWARM says this lets it work with fragmented, imperfect data rather than requiring deep ERP integration upfront.

• Early deployments anchor the pitch. At Ardent Mills, North America’s largest flour miller, teams now simulate hundreds of logistics scenarios in one session vs a multi-day manual rebuild. Springs Window Fashions cut planning cycles 40% and freed working capital. Funds go toward new use cases, deeper ERP and supply chain integrations, and go-to-market expansion.

Investors: S2G Investments, AgRogue Growth Partners, Radicle Growth, Grit Road Partners, Middleland Capital, Open Prairie, Serra Ventures, and Trailhead Capital

Source: AgNavigator

Thoughts 🤔

SWARM is selling deployment speed as the headline differentiator: 8-10 weeks to production vs the 18-month ERP transformation that kills most enterprise planning deals. It works with fragmented, badly labelled data instead of demanding customers clean it first. As the model layer commoditises, that sequencing is the competitive axis.

The more durable asset is buried in how the CEO describes deployment. The most valuable part, he says, is mapping how decisions get made, including the informal constraints most operators cannot articulate. That is SWARM encoding tacit operational knowledge that “can take decades to accumulate” into a reusable structure. A single deployment improves one customer’s planning. A library of agri-food decision logic compounds across customers, because protein production, grain processing, and food manufacturing share constraint structures.

The asset that compounds is the decision data more than the AI. My guess is the advantage goes to whoever maps the most operating reality across the most sites, and the models increasingly just run on top of that layer.

🍬 Tate & Lyle expanded plant cell culture partnership with BioHarvest Sciences to develop multiple plant-based sweetener molecules

• The British ingredient giant has broadened a collaboration it first struck with Canadian plant cell culture company BioHarvest Sciences in late 2024. The original deal aimed to create plant-based molecules that cut sugar in food and drink while addressing demand for affordable, sustainable, and nutritious alternatives.

• The expanded scope now covers multiple sweetener molecules, giving manufacturers a flexible toolkit for different formulation needs. Tate & Lyle is betting that no single sweetener can deliver everything customers want (sugar-like taste, nature-anchored solutions, reduced calories), so it is developing complementary molecules usable independently or in tandem.

• The work draws on BioHarvest’s Botanical Synthesis platform, a non-GMO technology that produces high-value plant compounds without growing the plants. It combines plant cell biology, elicitation, AI-driven development, and industrial bioreactors to make “precision botanics” it says offer enhanced potency, purity, consistency, and scalability.

Source: Green Queen

Thoughts 🤔

The timing of this partnership is interesting, as Tate & Lyle broadened a multi-molecule sweetener commitment just weeks before agreeing to a £2.7B all-cash takeover by Ingredion, with completion not expected until the second half of 2027.

Ingredion is buying Tate & Lyle largely for its sweetening and sugar-reduction book, the part carrying 16-18% operating margins against Ingredion’s ~9%. That makes the BioHarvest work less a standalone bet and more a feature of the asset being sold. Late-stage R&D expansions before an acquisition tend to do one of two things: build real pipeline depth, or signal to the acquirer that the franchise is worth paying up for. No molecule is named and no timeline disclosed, so it is hard to tell which from the outside.

Interesting to see whether Ingredion keeps funding the BioHarvest relationship after close, or quietly lets it lapse once the deal is locked.

🐛 Aphea.Bio partners with Bayer to co-develop bioinsecticides targeting sap-sucking pests

• The partnership combines Aphea.Bio’s pipeline of bioactive microbial metabolites with Bayer’s global development, regulatory and commercialisation reach. First targets are fruit crops including pome, stone fruit, citrus and grapes, with scope to expand into vegetables and row crops like cotton and soybean.

• The startup positions its metabolites as combining the environmental profile of biologicals with the stability and usability of conventional products, a barrier the industry has long struggled to clear. Sap-sucking insects are a growing problem as resistance and tighter regulation erode legacy chemistry.

• Candidates advance through joint field validation and early regulatory work, with milestone gates tied to efficacy, safety and manufacturability. The deal adds to a wider push by agrochemical majors into biologicals.

Source: AgNavigator

🥛 Lacto Japan made a strategic investment in Leaft Foods to scale Rubisco protein for the Japanese market

• The New Zealand startup extracts Rubisco, the most abundant protein on Earth, from alfalfa grown in Canterbury. It is a complete protein with a PDCAAS score similar to beef, egg whites, and dairy, and is rich in vitamins, minerals, and antioxidants. Functionally, it foams, gels, and emulsifies, setting like egg whites in baked goods.

• Most methods for extracting Rubisco from green leaves destroy its delicate structure. Leaft Foods developed a gentle, food-safe process that preserves protein integrity. It positions the ingredient as an egg alternative for a supply chain hit by climate change and avian flu, and as a way to fortify dairy and non-dairy products.

• The undisclosed investment deepens an existing collaboration to supply Japan’s largest food manufacturers, targeting revenues worth tens of millions of dollars within 5 years. Lacto Japan says the goal is to build a production and sales framework for Rubisco protein and strengthen the partnership.

Investors: Lacto Japan

Source: Green Queen

Thoughts 🤔

Leaft Foods has raised $15M so far and runs a demo plant making a tonne a week. Plantible already has US FDA clearance and a Texas facility producing hundreds of tonnes of Rubisco from lemna. Fudi is extracting from alfalfa on the same logic Leaft uses. On capital and capacity, Leaft is not the leader in this field.

What it has that the others do not yet is a locked route into Japan. Lacto Japan is a dairy ingredients trader, and its value to Leaft is decades of relationships with the country’s largest food manufacturers. Reading its own framing, the investment sits inside its whey protein book, where isolate prices are elevated on GLP-1 demand. A functionally comparable protein is a supply hedge it can sell through rails it already owns.

The differentiation in Rubisco is no longer who can extract but who can place it. If Leaft converts the Lacto Japan channel into signed manufacturer offtake before competitors establish their own Japanese routes, the early-mover lock on distribution likely matters more than its initial capacity disadvantage.

❄️ CryoVera taps an extremophile-inspired molecule to stop ice crystals from wrecking frozen food texture

• The Paris startup is developing antifreeze ingredients that bind to ice crystals and block new water from building on top, preventing the recrystallisation that turns ice cream and frozen products gritty or crunchy. The molecule is inspired by an extremophile organism that survives extreme cold, though CryoVera is withholding specifics until its patent filings clear.

• The real problem is not full thaw-refreeze cycles but the small, repeated temperature fluctuations frozen products face along the cold chain, down to shoppers opening freezer doors. CryoVera’s pitch is that ice recrystallisation inhibition assays show its molecules work at very low inclusion levels, keeping cost-in-use down for manufacturers.

• The team extracts the molecules from abundant natural sources using microbe-secreted enzymes, a faster path to market while keeping precision fermentation on the long-term roadmap. CryoVera is sampling frozen bakery, ice cream, and other firms, with interest also from plant-based meat brands.

Source: AgFunderNews

Thoughts 🤔

Unilever’s ice structuring protein cleared EFSA, sold in the hundreds of millions of units, and still never reached the wider market. The GM yeast it was made with, and the “GMO ice cream” labelling fight that followed, were likely part of why.

CryoVera is going after the same problem and steering around that production choice, extracting its molecule from a natural source already in the US, EU and Canadian food supply, with precision fermentation pushed to the back of the roadmap. That sequencing sounds like a deliberate move to keep a clean-label story intact, and it only pays if that story survives regulatory classification.

The team is candid that the ingredient could land as a food or as an additive with an E-number in Europe. A food classification keeps the clean label but an E-number puts the kind of additive marker on the pack that reformulation teams are trying to strip off. The extraction is hard in its own right, by the team’s own account, but the labelling outcome is what decides whether solving it is worth much.

🌾 China’s 15th Five-Year Plan puts farmer modernisation at the centre of rural policy with a strong push on smart agriculture

• China’s plan for 2026-2030 aims to lift comprehensive grain production capacity to ~725M tonnes by 2030, building on 2025 output of ~714.9M tonnes, the second straight year above 700M tonnes. The framing extends beyond yield to transforming farmers from traditional producers into participants in technology-driven agriculture.

• The plan places strong emphasis on smart agriculture, advanced machinery, improved seed systems, and digital tools, including AI, to raise productivity and ease labour constraints. It also pushes farmers beyond primary production toward rural industry, employment, and entrepreneurship to diversify income.

• The Ministry of Agriculture and Rural Affairs called agricultural and rural modernisation its “most arduous and challenging task” and described it as “lagging behind,” warning that “without agricultural and rural modernisation, there can be no modernisation of the entire country.”

Source: AgNavigator

🏭 Biomanufacturing as industrial infrastructure: Why operating biology, not just designing it, is now the strategic prize

• The global bioeconomy is worth $4-5T, with potential to reach $30T by 2050, and 50+ countries now have a national bioeconomy strategy. The resilience case is structural: chemicals and materials supply chains are concentrated in a few countries with oil, large agricultural bases, or specific processing capacity, which makes them fragile. Biomanufacturing offers a different geometry, with production sited regionally on local feedstocks.

• Most AI excitement in biology points at discovery: designing strains, predicting structures, accelerating R&D. That work addresses only half the problem. Shannon Hall argues the bigger unlock is operational. ML, digital twins, and predictive process control stabilise and transfer living processes in real time, encoding bioprocess knowledge into models that travel between sites.

• For policy-makers, Shannon says treating biology as strategic infrastructure means three shifts. Fund the manufacturing layer (pilot facilities, shared infrastructure, transferable data systems), not just discovery. Structure public-private investment for long horizons. Invest in the workforce and tools that let a distributed network function as one.

Source: World Economic Forum

Thoughts 🤔

Most attention on AI in biology has gone to discovery: designing strains, predicting protein structures, accelerating R&D. This piece is useful because it names the half that gets ignored.

Worth flagging that Shannon’s company, Pow.Bio, sells this kind of operational tech, so the framing is partly promotional, but the underlying point stands. The harder problem is operational: how you stabilise, transfer, and run living processes economically at scale. That is where most fermentation companies die, and the application of AI I am most interested in right now.

The policy asks land in the same underfunded place. Most bioeconomy strategies still skew toward research, so funding the manufacturing layer (pilot facilities and the shared data infrastructure that makes processes portable) targets the messy middle between lab and commercial scale that VC has retreated from.

The strongest of the three asks is funding shared, transferable-data infrastructure, because that is the part no single company can justify building alone and the part that determines whether a distributed network functions as a network. If private investors will not fund these facilities, governments have to step up.

💭 Is AgTech leaving the farm?

• Patrick Honcoop observes that AgTech companies, especially in automation, robotics, and sensing, are increasingly eyeing adjacent industries as their next market. Two recent deals make it visible. In April 2026, Caterpillar acquired the assets of Monarch Tractor, an autonomous electric tractor startup. In May 2026, Elbit Systems’ subsidiary FUSE acquired Bluewhite, an Israeli autonomy platform built for California permanent crops with 100,000+ hours of field operation. Neither buyer was an agriculture company.

• Patrick argues the pull is economics. A robotics company serving California almonds has a TAM in the hundreds of millions. The same autonomy stack pointed at construction, mining, and defence scales into the billions, and volume drives down per-unit cost on hardware that stays expensive because ag volumes are low. Defence has also turned investable again as NATO spending and geopolitical tension reframe dual-use tech.

• His framing splits the move two ways. Some founders are pulled outward by inbound interest after building something valuable in ag. Others are pushed out because the unit economics fail in a fragmented, seasonal, low-margin market. His warning: agriculture can become secondary by resource allocation rather than deliberate choice, leaving companies that serve everyone adequately and no one exceptionally well.

Source: Patrick Honcoop/LinkedIn

CAPITAL & CONVICTION

The sharpest thinking in agrifood tech often happens off the record. My interview series brings it on the record:

• Agtech’s Real Bottleneck Is the Translational Layer, Not the Technology - Beanstalk AgTech’s Justin Ahmed

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• What It Takes to Build a Fundable Food Company After “Peak Stupid” - Siddhi Capital’s Steven Finn

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

• How Agrifood Tech Investing Is Shifting and Where Value Will Be Created - PeakBridge’s Yoni Glickman

Browse the full archive. More conversations dropping soon. Stay tuned!

Thanks for reading!

Let me know your thoughts in the comments or by replying to this email. If you want to connect with me on LinkedIn, you can find me here.

If you found value in this newsletter, consider sharing it with a friend who might benefit! Or, if someone forwarded this to you, consider subscribing.

Share

Subscribe now

Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Welcome to Issue #148 of Better Bioeconomy, insights on startups, capital, and ideas reshaping food and agriculture for better human and planetary health. Thanks for being here.

Below, I have curated the 10 most interesting ag and food tech stories I came across last week, paired with my thoughts on what they mean for where the industry is heading.

This week covers Nestlé’s bet on precision-fermented lactoferrin for baby formula, a plant immunity biofungicide for Asian rice, wave-form AI that measures how materials behave, illuminated fermentation as a plant cell culture platform, dairy’s inversion into high-value ingredients, €300M underwriting seeds as sovereign infrastructure, and where AI cuts food waste.

🍼 Nestlé teams up with Helaina to develop infant formula using precision-fermented lactoferrin

• Nestlé has begun a multi-year collaboration with Helaina, the New York-based startup behind effera, a precision-fermented human-identical lactoferrin. The two companies will explore new bioactive proteins in early-life nutrition and co-develop infant formula products using effera as a core ingredient.

• Effera is bioidentical to the lactoferrin found in breast milk. The partnership gives Nestlé access to a consistent, scalable supply of a protein that the company says can help bridge the gap between formula and breast milk, addressing one of the category’s longest-standing limitations.

• For Nestlé, this builds on more than 30 years of research in human milk bioactives. For Helaina, it is validation at the highest level of the infant nutrition category, accelerating the path from fermentation platform to mainstream product and clinical credibility.

Source: Green Queen

Thoughts 🤔

The parity story is the headline, but the timing points at supply security. A single ARA oil supplier failure in late 2025 cascaded across Nestlé, Danone and Lactalis at once, exposing how much of the industry’s risk sits in shared, concentrated inputs rather than any one company’s quality systems. Against that, a precision-fermented protein with a dedicated, auditable supply chain is a hedge as much as an upgrade.

Purified lactoferrin is already supply-constrained and expensive at hundreds to thousands of dollars per kg, because colostrum carries so little of it. Fermentation gives Nestlé batch reproducibility and contamination control on a single-source input, in a category where a recall costs far more in regulatory exposure and brand damage than the ingredient margin returns.

My read is that the durable value is in the process reliability as much as the molecule. If effera clears formula-grade QC consistently across runs and sites, the supply-security case carries the deal. If not, this reverts to a nutritional bet competitors with their own lactoferrin can match. The first co-development milestones are where that gets tested.

🧠 Apoha emerged from stealth with $36M to build AI models for materials discovery using a new class of liquid wave-form data

• The London- and San Francisco-based startup captures the wave patterns a material generates when suspended in liquid and subjected to controlled physical stress. A single run yields over 1,000 numerical descriptors in minutes rather than the days conventional lab tests require. The startup calls this readout VIBE (Variations in Inter-facial Behaviour Under Excitation).

• Apoha converts each reading into a “behavioural embedding,” a numerical fingerprint AI models can learn from. The company argues existing AI is trained on text and images, not on how matter tastes, smells, or dissolves, and that this data layer is what unlocks reliable materials design. One early customer used VIBE to find a plant-based vegan chicken substitute within two weeks after a supplier collapsed.

• The $36M includes a 2024 seed and an unlettered round closed this spring. Apoha’s Fortune 500 customers already span pharma, food and beverage, and materials. Series A funds will scale the custom hardware and platform to handle more sample types.

Investors: Singular, Draper Associates, Redalpine, Seedcamp, Wilbe, Nucleus; grant from Innovate UK

Source: Fortune

Thoughts 🤔

AI for molecules has matured along two axes: sequence and structure. Both sit on large existing datasets, which is why language models and AlphaFold-style prediction work as well as they do. Behaviour, how a substance dissolves, aggregates, holds flavour, or wears, has no equivalent dataset at scale, so models infer it indirectly.

Apoha is generating behaviour as a directly measured data type. The physics underneath is established. What interests me is industrialising it into a standard, machine-readable embedding.

This is a big deal because the binding constraint in molecular ML right now is data, not model architecture. The developability literature openly concedes models lag for lack of large physical training sets. When the bottleneck is the missing variable rather than the algorithm, owning a proprietary measurement of that variable is a different position from fine-tuning on public sequence data.

💰 Limagrain secured €300M EIB loan to accelerate plant genetics R&D for more resilient crops to support European agricultural independence

• The French agricultural cooperative is the world’s 4th-largest seed company. The financing channels through its listed subsidiary Vilmorin & Cie to fund a research programme developing innovative plant genetics aimed at major agricultural and food challenges. The loan ranks among the EIB’s largest agricultural financing operations in Europe.

• Research targets agronomic gains: higher yield, resistance to diseases and pests, drought tolerance, climate and regional adaptation, and optimised nutrient use, alongside nutritional and environmental quality. The aim is to put more resilient seed in farmers’ hands as climate pressures mount.

• The loan flows through the EIB’s TechEU programme under the European Commission’s InvestEU guarantee, positioning seeds as a strategic lever for European food sovereignty. This marks EIB’s 2nd loan to Limagrain, following a €170M facility in 2020 to adapt seeds to climate change.

Source: European Investment Bank

Thoughts 🤔

EIB routed this loan through TechEU, the same sovereignty platform it uses for semiconductors, broadband, and defence, and tagged it “agricultural independence.” The instrument is ordinary corporate R&D debt. What is new is the category: seed genetics is being underwritten as strategic infrastructure rather than agribusiness lending, sitting behind the €3B agriculture-and-bioeconomy package and the near-€15B EIB deployed across 2024-25.

The framing matters because it unlocks a funding rail that matches the asset. A breeding cycle runs 7-10 years and does not fit quarterly public markets, which is part of why Limagrain took Vilmorin private in 2023. Sovereign-guaranteed term debt at development-bank terms is structurally better matched to that horizon than the equity it walked away from. Once seeds sit in the same political bucket as chips, the test shifts from “is this bankable” to “can Europe afford not to fund it.”

🤝 Syngenta teams up with Ascribe Bioscience to bring new biofungicide to rice farmers in Southeast Asia

• Ascribe’s Phytalix is a biofungicide that mimics plants’ natural resistance processes. It enables crops like rice, soybeans, corn, and wheat to defend against a broad spectrum of fungal, bacterial, and viral pathogens throughout the growing season.

• Syngenta ran four years of trials before signing, with results including measurable yield gains and efficacy against Bacterial Leaf Blight, one of the most economically significant rice diseases in Asia. Phytalix offers high stability and low application rates, viable for farms of all sizes.

• Under the agreement, Syngenta gets exclusive commercial access to Phytalix for rice and other major crops in Southeast Asia, with potential expansion to other regions. The companies are now advancing registration, with first commercial launches in Asia planned for 2029.

Source: AgroPages

Thoughts 🤔

Ascribe now has its two biggest strategic investors both signing commercial deals on the same technology, carved cleanly by geography and use. Corteva Catalyst co-led the $12M Series A and is developing a Phytalix seed treatment. Syngenta Group Ventures backed that round and has now signed exclusive supply for rice across Southeast Asia. Two competing input majors, both on the cap table, each taking a non-overlapping slice.

A small-molecule biological would find it tough to fund global registration and distribution itself, and Phytalix needs separate filings across fragmented Asian regulators on top of the EPA. Splitting by crop, geography, and use lets Ascribe ride multiple incumbents’ regulatory and distribution rails without handing any one the whole asset. The equity-to-offtake path also gives each major a look inside before committing channel.

My thinking is the value accrues to Ascribe keeping these carve-outs non-exclusive rather than going deep with one. That holds only if the slices stay clean. If Corteva or Syngenta pushes for a broader lock-up once field data lands, the optionality compresses.

🥕 Ingredion acquired prebiotic fibre made from upcycled carrot pomace to expand its functional fibre portfolio

• Ingredion bought Benicaros, a patented prebiotic fibre made from upcycled carrot pomace, from Dutch innovator NutriLeads. The deal is an asset purchase covering all IP, trademarks, clinical trials, and manufacturing know-how.

• Benicaros is positioned as a “precision prebiotic” that selectively feeds beneficial gut microbes while interacting with the immune system. Ingredion says its rhamnogalacturonan-I (RG-I) structure differentiates it from inulin or FOS, working at a daily dose as low as 300mg with less gas.

• Launched in the US as an immune-health ingredient in 2021, Benicaros secured FDA GRAS no-objection in 2022 and now features in dozens of supplements worldwide. It holds approvals across Asia-Pacific and Brazil’s ANVISA, and awaits final novel food approval from EFSA.

Source: NutraIngredients

Thoughts 🤔

This Benicaros pickup landed the same week Ingredion agreed a $3.6B all-cash takeover of Tate & Lyle. Same buyer, two deals, three orders of magnitude apart. One buys platform scale by absorbing a rival. The other buys a single molecule the platform cannot make itself, through a carve-out that took the IP, trademarks, clinical file, and manufacturing know-how and left NutriLeads the company behind.

What interests me is what that smaller deal says about how a startup like NutriLeads realistically exits. It raised modestly, a €4.5M Series C in late 2023, and did the legible work: GRAS, EFSA, and ANVISA clearance, a published clinical file. What it could not fund with VC cheques was global distribution to manufacturers across 120-plus countries, which needs a sales force and balance sheet that take a decade to build.

That capital intensity sits downstream of where VC is comfortable, so the natural handoff is to a strategic that already owns the rails. The open question for founders is whether that makes a single-ingredient company a clean, fundable asset-sale story, or whether building only a transferable dossier caps your leverage when the one buyer who needs it comes calling.

🧫 Ayana Bio and Brevel received a $1.25M grant to combine plant cell culture with illuminated fermentation for bioactive ingredients

• Ayana Bio, a Boston-based Ginkgo Bioworks spinoff, uses plant cell culture to produce bioactives identical to (or more potent than) those in nature. The $1.25M grant from the Binational Industrial Research and Development (BIRD) Foundation is part of a larger $7.5M pool the foundation says has leveraged private funding into a combined $20M investment.

• Brevel’s illuminated fermentation platform runs microalgae bioreactors with both sugar and light. The joint development agreement will test whether Brevel’s process can advance Ayana Bio’s plant cell culture pipeline for use in food and wellness ingredients.

• The partnership targets a structural problem in botanical supply: climate change, shifting agricultural conditions, and contamination risks are degrading the quality and availability of plant-derived ingredients. A combined indoor platform would offer a predictable, scalable alternative for CPG, supplements, and functional food.

Source: Green Queen

Thoughts 🤔

Brevel built illuminated fermentation to make its own chlorella protein, and now appears to be expanding into a platform provider for the plant cell culture category. The product is no longer just biomass, it is the lighted tank itself, sold new-build or retrofit to companies that bring their own cell lines.

Cocoa and coffee wins are already in hand, more partners are signing, and a category full of startups with cell lines but no path to commercial-scale tanks is the gap Brevel appears to be selling into.

What makes this more than a capacity play is what light does to the product. For commodity microalgae protein, light improves yield per litre. For Ayana, the secondary metabolite is the entire product. If light reliably upregulates those pathways, it stops being a growth input and becomes a potency lever, and the value of a potency lever scales with the value of the molecule.

The bet I find more interesting is that Brevel may end up owning the one variable nobody else in plant cell culture has industrialised at scale. Everyone can buy stainless steel. Lighted tanks that work across unrelated cell lines are a narrower thing to control, and if the cocoa, coffee, and Ayana results converge, the leverage sits with the company selling the light.

🧬 Converge Bio received $2.5M Gates Foundation grant to extend its AI drug-discovery platform into crop genomics

• Converge Bio builds generative AI models for life sciences, until now focused on drug discovery. The 37-month grant funds its first move into agriculture, adapting the platform to identify causal genetic variants behind crop traits like yield and climate resilience.

• The company is developing a multimodal, long-context foundation model that treats the crop genome as one interconnected system, analysing millions of base pairs at once and ranking the genes or mutations most likely driving a target outcome.

• An interpretability layer surfaces which parts of the genome led to each prediction, helping scientists prioritise candidates for validation. Converge Bio says this can cut breeding cycles needed for climate-resilient varieties, shortening time to market.

Source: iGrow News

🌾 Pandawa Agri targets fertiliser crisis with microbial-friendly soil ameliorant for Indonesian smallholders

• The Indonesian ag tech company known for its pesticide reductants has built Balance Solution, a soil ameliorant built to complement or partly replace conventional fertiliser. It gives rice and coffee farmers more flexibility when subsidies arrive late or supply chains break down.

• Rather than introducing new microbial strains, the product creates a physical and biological “home” for the beneficial microbes already in the soil. Once those native microbes reactivate, plants take up nutrients previously locked away, sidestepping the common failure mode of inoculants that don’t establish in existing soil ecosystems.

• The company says coffee farmers cut NPK use by ~30% while raising yields 30-40%, and rice farmers cut fertiliser 10% for a ~10% productivity gain. Pandawa is scaling coffee trials from 20 to ~600 hectares in Lampung and South Sumatra, expanding rice to ~100 hectares, and extending palm oil and forestry tests beyond Indonesia.

Source: AgTechNavigator

Thoughts 🤔

The interesting detail is Pandawa’s distribution. Balance Solution is the second product line going through a farmer ecosystem the company already built around its pesticide reductants, complete with bundled agronomy support and downstream offtake to multinational F&B buyers.

That matters because smallholder input products almost always stall on distribution and trust. Reaching fragmented farmers is the expensive part, and most agri-input startups can’t get past it. Pandawa already paid that cost once, so the marginal cost of pushing a second input through the same channel is far lower than a standalone soil-amendment startup faces.

The durable asset is the ecosystem. If the product performs even moderately, the bundled channel could let it scale faster than a better product sold cold. The risk is the same channel concentrating reputational exposure across both lines if field results disappoint.

🥛 GERBER-RAUTH exits dairy commodities trading to focus on advanced dairy ingredients

• The Milan-based private investment company has sold Italian dairy commodities broker L’Interform to food sourcing firm Atlante, a deliberate retreat from commodity cheese trading. The deal reflects a view that synergies between traditional dairy trading and next-generation ingredient tech had largely disappeared by 2024.

• The firm has been building a precision-fermentation and advanced plant-based portfolio since before 2020, with stakes in Perfect Day, New Culture, and Change Foods. Its thesis now centres on dairy proteins, fats, and oleosomes as higher-value categories for specialty nutrition rather than commodity markets.

• According to Chairman Christian Pichler whey demand has grown so fast that “cheese is becoming the byproduct.” He argues that as food-grade fermentation capacity scales, the unit economics of biomanufactured whey will converge with, and potentially match, conventional whey protein plants.

Source: AgFunderNews

Thoughts 🤔

The part that stuck with me was the role reversal: animal dairy moving up into high-value applications, while biomanufactured and plant-based ingredients serve the commodity base. Today, fermentation is pitched premium-first, and rightly so given the cost curve. What Pichler describes is the long-term end state, the opposite of where the category starts.

A cow cannot turn supply on and off, and Europe’s milk pool is flat with farm succession failing. Biomanufacturing can match supply to demand, site production near consumption, and store it. That scale-and-storability edge is why the inversion can eventually be true.

You can already see the first step inside animal dairy itself: with US whey isolate around $11/lb on GLP-1-driven demand, cheese is becoming the byproduct of whey-making.

My read is this stays directionally right only if food-grade fermentation keeps coming online at lower-grade economics. If scale-up stalls, the argument falls back into the premium-niche story, and animal dairy just stays where it is.

📊 Report: How AI is reducing food waste across the US food system, and where the hype outpaces the evidence

• Nearly a third of the US food supply goes unsold or uneaten every year, and surplus food still hit ~70M tons in 2024 despite a 2.2% decline. ReFED and The Spoon drew on 40+ interviews plus academic research and pilot data to map where AI is moving the needle.

• The strongest results come from foodservice, retail fresh categories, and parts of food production, where measurement and forecasting tools have run for years. Companies reported waste cuts of up to 53% in commercial foodservice and manufacturing. AI demand forecasting reportedly prevented ~200M pounds of loss across 26 countries, and storage monitoring saved ~20M pounds of apples across 1,500+ storage rooms.

• AI’s most consistent contribution is visibility, shifting decisions upstream where prevention is still possible. One Afresh pilot with a US value grocer projected $2.7M in annual savings from lower shrinkage and less ordering time, and foodservice pilots showed waste cost reductions of up to 39% per meal.

• The impact is uneven because it depends on behaviour change and aligned incentives. AI recommendations are frequently overridden by store managers regardless of accuracy, since acting on them requires workflow and labour changes most organisations aren’t structured for. Generative AI and LLMs draw heavy interest but remain mostly at proof-of-concept.

• The headline message: AI is not a silver bullet, but it works where data is clean and connected, incentives reward reduction, and teams have authority to act. ReFED’s advice to operators is to fix the data before buying the AI, measure waste reduction rather than model accuracy, and align manager metrics so they stop over-ordering.

Source: ReFED and The Spoon

CAPITAL & CONVICTION

The sharpest thinking in agrifood tech often happens off the record. My interview series brings it on the record:

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• What It Takes to Build a Fundable Food Company After “Peak Stupid” - Siddhi Capital’s Steven Finn

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

• Turning the Industrial Biomanufacturing Graveyard Into a Winning Playbook - First Bight Ventures’ Veronica Breckenridge

• How Agrifood Tech Investing Is Shifting and Where Value Will Be Created - PeakBridge’s Yoni Glickman

Browse the full archive. More conversations dropping soon. Stay tuned!

Thanks for reading!

Let me know your thoughts in the comments or by replying to this email. If you want to connect with me on LinkedIn, you can find me here.

If you found value in this newsletter, consider sharing it with a friend who might benefit! Or, if someone forwarded this to you, consider subscribing.

Share

Subscribe now

Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Welcome to Issue #147 of Better Bioeconomy, insights on startups, capital, and ideas reshaping food and agriculture for better human and planetary health. Thanks for being here.

Below, I have curated the 10 most interesting agrifood tech stories I came across last week, paired with my thoughts on what they mean for where the industry is heading.

This week covers natural food colours ahead of the Red No. 3 cliff, mycelium meat on brewery infrastructure, compliance-aware crop AI from China, post-bankruptcy precision fermentation playbooks, philanthropic capital filling the agtech valley of death, and virtual fencing’s US land grab.

🎨 Phytolon raised $23.6M Series B to commercialise its yeast-fermented beetroot red dye in the US

• The Israeli startup uses precision fermentation of baker’s yeast to produce natural pigments for food, replacing petroleum-based synthetics like Red Dye No. 3 and Red 40. Its platform is built on two core pigments, yellow and purple, which can be blended into a palette spanning yellow, orange, pink, purple, and red.

• Phytolon genetically engineers yeast to express betanin, the water-soluble pigment found in red beets, then strips the production organism from the fermentation broth. The resulting colourant is heat- and pH-stable, comes in liquid and powder formats, and works across bakery, savoury, frozen, dairy, and confectionery.

• The round closed in three stages, with the majority of capital landing in April. Funds will go toward sales, supply, and distribution partnerships in the US, where the FDA cleared beetroot red in February and simultaneously allowed “no artificial colors” labelling for products free of petroleum-based dyes. A prickly pear yellow is next in the pipeline.

Investors: Millennium Foodtech, NextGen Nutrition, Colorcon Ventures, Yossi Ackerman, and an undisclosed strategic investor

Source: Green Queen

Thoughts 🤔

Phytolon’s Series B sits on two structural conditions. The first is a deadline-driven buyer market. Red No. 3 exits the food supply by January 2027, with HHS/FDA pushing the other six petroleum dyes out by end of 2026.

For CPG procurement teams, that converts natural colour adoption from a clean-label preference into a fixed-date reformulation event. Phytolon’s February 2026 FDA clearance puts it 11 months ahead of the cliff while some startups are still in submission, and the next 18 months of contract pricing power look structurally stronger than the standalone unit economics would suggest.

The second condition is what the round reveals about food ingredient capital. A Series B closing in three tranches, with the majority landing in April from an undisclosed strategic, is staged commitment rather than a single-close conviction round, even with regulatory clearance and a deadline-driven buyer base behind it. My read is that this is what “good” precision fermentation rounds look like now: milestone-gated capital, strategic underwriters, and investors monitoring performance before deploying the full cheque. Founders in the category should plan around staged closes rather than single dates.

🍄 Infinite Roots acquired Bosque Foods to expand its mycelium meat portfolio

• The Hamburg-based biotech picked up the Berlin-founded startup for an undisclosed sum, nearly two years after Bosque liquidated its subsidiary following regulatory hurdles in the EU. The deal folds Bosque’s whole-cut chicken, pork filets, and bacon into Infinite Roots’ mycelium protein lineup.

• Infinite Roots runs submerged fermentation, growing edible mushroom strains in steel tanks on a nutrient-rich broth. Bosque uses solid-state fermentation, growing microbes on inoculated solid surfaces fed by low-value agrifood sidestreams. Combining the two methods gives Infinite Roots both scale and structured whole-cut formats from one platform.

• The acquisition adds Bosque’s IP, process data, and product knowledge to Infinite Roots’ industrial base, which the company says will speed scale-up and broaden its format range.

Source: Green Queen

Thoughts 🤔

This looks like a tidy mycelium consolidation story, and the tech synergies are real with few mycelium companies owning both. What interests me more is the sequencing. Infinite Roots has rescinded its FDA GRAS filing to update its safety dossier, has no near-term EU novel food path, and rerouted commercial activity through South Korea via Pulmuone. Bosque faced the same EU bottleneck and now operates only out of New York. The acquirer is buying capability before clearing its own regulatory bar.

Most consolidation waves see survivors roll up distressed assets after the gating constraint is solved. Here, the regulator is the gating constraint, and the lengthy EFSA approval window means the 2022-2023 cohort was always going to hit a capital wall before approval.

My thinking is that this works if the updated US dossier lands GRAS in the next 12-18 months and EFSA’s reforms open the EU window in time for whole-cut formats. If neither moves, the process synergy still buys optionality wherever approval lands first, but two regulatory-stalled assets end up sharing one runway.

🍗 Pacifico Biolabs raised €7M Series A to brew mycelium chicken in beer tanks

• The Germany-based startup uses fermentation to grow whole-cut mycelium meat, turning the microbes into a protein-rich biomass that mimics whole-muscle texture. It has pivoted from its original seafood focus to chicken, which it will sell to B2B clients under the Viando label and target supermarket shelves across Germany, Austria, Switzerland and the Nordics by late 2026.

• Pacifico’s process runs in standard beer brewery tanks rather than purpose-built bioreactors, and the startup claims this cuts CAPEX by >95% vs traditional biomass fermentation routes. The approach works because the EU’s beer production has declined for 5 consecutive years, leaving fermentation capacity sitting idle and available for retrofit.

• Funds will scale production to 200 tonnes/month in Saxony, expand the team, and lock in commercial partnerships ahead of the late-2026 launch. Pork and seafood formulations remain in the pipeline.

Investors: Stray Dog Capital, TGFS, Sprout & About Ventures, Simon Capital, FoodLabs, and a regional brewery partner

Source: Green Queen

Thoughts 🤔

Two German mycelium startups are now anchoring production on idle brewery infrastructure rather than purpose-built bioreactors. Infinite Roots has been doing the same, partnering with contract manufacturers and repurposing brewery sites on the same logic.

The timing fits the funding market. Purpose-built bioreactor plants priced in the tens of millions are uninvestable right now. Brewery retrofits compress the headline CAPEX number into something a Series A can handle.

That lowers the bar for the whole category to reach commercial scale without raising money the market won’t provide. The vessel is shared, but strain IP, fermentation process, downstream, and product quality still have room to differentiate.

🤝 BioPrime AgriSolutions and Mosaic team up to embed biologicals into mainstream fertilisers

• The Pune-based ag biologics startup will plug its SNIPR-platform biologicals into Mosaic’s potash and phosphate fertiliser lines, with the companies pitching the joint offering as a “Crop Performance System” that goes beyond basic plant nutrition to support crops across the growth cycle.

• The deal gives BioPrime a route into one of the world’s largest fertiliser distribution footprints. Mosaic supplies customers in more than 40 countries, so even modest attach rates on its volumes would put SNIPR-derived biologicals in front of growers at a scale most ag-biotech startups spend years trying to reach.

• The companies say the integrated product is designed to improve return on crop nutrition spend and lift output from existing farmland without a matching rise in environmental impact. The framing matches where the industry is heading as fertiliser prices swing on geopolitical disruption and regulators push for lower-footprint productivity.

Source: AgroPages

🐄 Monil raised $10M to enter the US virtual fencing market

• The Norway-based startup makes solar-powered cattle collars that create virtual boundaries for grazing herds. Monil has sold 50,000 collars across Norway, Sweden, and the UK since launching in 2022 and grew revenue 5x last year to $6.6M.

• Beyond fencing, the collars track activity to flag entrapments and illness, and the startup is now layering on reproductive monitoring. Heat detection launched in May using rumination data, with calving detection arriving in autumn based on other activity signals.

• The capital funds a US launch from a new Kansas City base, where Monil is recruiting sales and field staff and has completed regulatory prep. The company says it is ready to ship to the American market and views the US as a growing opportunity with rapid developments underway.

Investors: Firda and other Norwegian venture capital investors

Source: Beef Magazine

Thoughts 🤔

Halter raised $220M recently and now spans 200+ ranches in 22 states. Vence sits inside Merck Animal Health on 4M acres. Gallagher’s eShepherd has been live in North America since 2024 with existing ag retailer relationships.

Monil is entering at much smaller scale against entrenched competitors. I am curious to see how Monil carves out a defensible position. The Kansas City base hints at a cow-calf focus rather than Western rangeland, where the big three concentrate. Whether Nordic product economics hold for US operators is the other open question.

🌾 Nanjing Agricultural University unveiled China’s first open-source AI model for crop protection

• Called Green Shield, the model was built by NAU’s College of Plant Protection with the National Key Laboratory of Agricultural Biosafety and 30+ industry institutions. It was trained on 2.5B tokens from academic papers, patents, national standards, and field reports spanning rice, wheat, soybeans, vegetables, and fruit trees.

• Green Shield identifies crop type, growth stage, and disease symptoms to generate integrated pest management strategies. Before any recommendation, it cross-checks proposed chemicals against China’s national pesticide registration database, blocking non-compliant suggestions on banned substances, approved crop applications, or dosage limits.

• The release follows Sinong, NAU’s general agriculture LLM trained on 4B+ tokens and shipped in 8B and 32B versions earlier this year. Together they give Chinese agriculture a specialised open-source AI stack, from broad agronomic guidance to compliance-aware crop protection advice in a country where pesticide misuse and resistance remain persistent grassroots problems.

Source: iGrow News

Thoughts 🤔

A free, compliance-grounded crop protection advisor inside the world’s largest pesticide market could change how this layer gets monetised. In my view, tools like Climate FieldView and Cropwise have never really sold standalone advisory revenue per user. They are loyalty layers designed to pull through branded seed and chemistry. Green Shield’s threat is margin pressure on the chemistry book, since a neutral recommender could nudge farmers toward generic actives over branded portfolios.

China’s economics were already hostile to paid advisory products for smallholders, though mid-scale cooperatives and new-type operators do pay for advisory tooling. Open-sourcing a compliance-aware model removes whatever pricing power sat in the model layer.

If Green Shield holds up in deployment, value likely accrues to the players already touching farmer transactions, like input retailers and platform players, rather than the input majors defending branded chemistry through digital agronomy.

🎢 Amyris CEO on re-emerging from bankruptcy with a leaner model built on recurring revenue

• Two years after its 2023 Chapter 11 filing, the synthetic biology pioneer is operating with a monthly burn rate that the company says matches what it used to spend in a single month under prior management. CEO Kathy Fortmann says Amyris closed 2025 a year ahead of plan on both top and bottom lines, though the company is not yet profitable.

• Amyris has exited consumer brands, shed unfavourable contracts, and returned to its roots as a B2B biotech. The company is prioritising recurring revenue from licensing and royalties over large upfront partner payments, and applying back-of-envelope economics earlier to avoid burning cash on molecules that won’t pencil at scale.

• Fortmann has also broken the rule that every collaboration ends with Amyris manufacturing the ingredient. The company will now do strain engineering and process development for partners and license the output, reserving its precision fermentation plant for specialty molecules. Ag biologicals is a new focus, with Amyris targeting startups and incumbents that need help with strain optimisation, scale-up, or initial manufacturing.

Source: AgFunder

Thoughts 🤔

A useful read for founders building in biomanufacturing on which layer of the stack is worth owning. The first wave of precision fermentation companies bet that the durable moat came from owning everything: strain, process, manufacturing, often the consumer brand on top. That thesis assumed cheap capital and patient timelines, and both have gone.

Amyris is the visible example of what happens when full-stack ambition runs into the cash discipline needed to make any single layer profitable. Ginkgo is converging on a similar narrower repositioning after its own restructuring. The survivors are picking the layer they want to own, monetising it through recurring revenue, and treating adjacent layers as someone else’s problem. The strategic question for the next cohort is no longer “what molecule” but “which layer”.

💰 Renaissance Philanthropy bets on “venture capital for public good” to reshape agricultural innovation

• Renaissance Philanthropy has mobilised $533M across 22 programmes and five government partnerships, with $265M routed to third parties and $268M into internally managed initiatives. The two-year-old nonprofit pitches itself as a field builder, structuring thesis-driven programmes with stage-gated decision points more akin to venture studios.

• Much of its agricultural work sits inside the Advanced Research for Climate Emergencies (ARC) fund, targeting underexplored risks like methane and nitrous oxide emissions, ag-driven deforestation, and climate tipping points. Through the Climate Emergencies Resilience Lab, built with Deep Science Ventures, it identifies scientific opportunities and spins up agtech ventures where commercial pathways exist.

• The bet is that philanthropic capital can de-risk the agtech “valley of death” through 5-7 year programmes that produce decision-grade science and hand off to governments, corporates, or investors. Renaissance claims climate stabilisation receives <0.1% of global climate finance, framing agriculture as a node where risk-tolerant capital could unlock returns conventional funders can’t reach.

Source: AgNavigator

Thoughts 🤔

The “venture capital for public good” framing obscures the more interesting structural read. The operating model: 5-7 year programmes, milestone-gated, domain-expert-led, with handoff plans is closer to a Focused Research Organization than a venture studio. FROs have crowded into protein structure, brain connectomics, and climate measurement through folks like Convergent Research and Astera. But agriculture has been largely absent from that wave.

The gap they fill is the messy middle between USDA-style basic research, CGIAR-style smallholder programmes, and venture-backed agtech. None of those fund a 5-year team chasing a specific milestone in crop biology with a defined sunset and a public-good deliverable. FROs landing in agriculture now is a counter-cyclical move into a vacuum. The big ag players have pulled back internal R&D, USDA budgets are constrained, and CGIAR is in a funding crisis.

If Renaissance can scope milestones that produce shared infrastructure (phenotyping platforms, trait libraries, climate-response biological databases), the compounding leverage downstream could look closer to what AlphaFold gave structural biology than what venture has produced in ag tech.

🛡️Syngenta opens $10M Almería R&D hub to halve breeding timelines against fast-emerging crop pathogens

• The R&D Technology Centre in El Ejido, Almería, consolidates breeding, trait development, seed operations, fruit quality, applied data science, and digital tools under one roof. Biosafety infrastructure on site lets researchers study high-risk pathogens in quarantine.

• The location is strategic. Almería’s “Sea of Plastic” packs >30,000 hectares of greenhouses producing ~4M tonnes of vegetables annually, giving breeders constant, diverse disease pressure to stress-test varieties under commercial conditions. Syngenta says a new serious pathogen now emerges roughly every 2 years, with threats like ToBRFV and Downy Mildew driving the urgency.

• The company claims the facility can cut breeding timelines by up to 50%, taking varieties from 4 years to as little as 2, on the back of AI and ML in its breeding pipelines. Insights generated locally feed Syngenta’s global R&D network, with the field-to-lab model designed to shorten the loop between pathogen identification and resistant seed delivery.

Source: AgNavigator

💭 Ag tech hype cycle 2026: The sector is entering its industrialisation phase

• Hadar Sutovsky’s thesis is that value creation is shifting upstream into precision agriculture, irrigation intelligence, AI crop scouting, biologicals with proven ROI, and specialty-crop robotics. These categories are moving from experimentation into operational deployment, signalling AgTech’s transition from pilot purgatory to embedded infrastructure.

• Hadar argues physical AI is becoming real on the farm through task-specific automation rather than the fully autonomous farm narrative that dominated earlier cycles. Biology is entering its execution phase too, with climate-resilient genetics, next-gen biologicals, and regenerative infrastructure now judged on field performance and integration into existing farm workflows.

• The reset categories are indoor farming, generalised autonomy, and broad platform plays, all hitting the wall on unit economics, adoption friction, and infrastructure constraints. Winners will be the solutions that slot into systems farmers already use while delivering measurable ROI under real-world conditions.

Source: Hadar Sutovsky/LinkedIn

CAPITAL & CONVICTION

The sharpest thinking in agrifood tech often happens off the record. My interview series brings it on the record:

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• What It Takes to Build a Fundable Food Company After “Peak Stupid” - Siddhi Capital’s Steven Finn

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

• Turning the Industrial Biomanufacturing Graveyard Into a Winning Playbook - First Bight Ventures’ Veronica Breckenridge

• How Agrifood Tech Investing Is Shifting and Where Value Will Be Created - PeakBridge’s Yoni Glickman

Browse the full archive. More conversations dropping soon. Stay tuned!

Thanks for reading!

Let me know your thoughts in the comments or by replying to this email. If you want to connect with me on LinkedIn, you can find me here.

If you found value in this newsletter, consider sharing it with a friend who might benefit! Or, if someone forwarded this to you, consider subscribing.

Share

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Welcome to the 146th edition of Better Bioeconomy, insights on startups, capital, and ideas reshaping food and agriculture for better human and planetary health.

Below, I have curated the 10 most interesting agrifood tech stories I came across last week, paired with my thoughts on what they mean for where the industry is heading.

This week’s edition covers livestock data infrastructure, methane-cutting feed tech, plant immunity platforms, precision fermentation, cocoa-free chocolate, and China’s industrial play on global food.

🧬 StrainX Bioworks emerged from stealth with $13M to scale precision fermentation ingredients for food and nutrition

• The India-based startup runs a 10,000-litre facility and 100+ team, with modular capacity that scales toward 100,000 litres over the next 12-18 months as commercialisation lines up. Specific ingredients remain undisclosed, though initial work is in alt proteins.

• StrainX takes a full-stack approach, building strain engineering, process development, fermentation scale-up, downstream processing, and manufacturing in-house rather than relying on co-manufacturers. The startup says India offers limited precision fermentation infrastructure outside pharma, so owning the stack lets it control process economics and iteration cycles.

• One molecule has self-affirmed GRAS status in the US with a no-questions letter pending, and multiple ingredients are awaiting Indian approval. StrainX claims price parity with conventional versions, helped by what it calls structural manufacturing advantages in India, and is positioning as a B2B partner to global food and ingredient companies.

Investors: Prime Venture Partners, Leo Capital, Good Startup, Sparrow Capital, Sun Icon Ventures, Dholakia Ventures, WindT Angels

Source: Green Queen

Thoughts 🤔

The full-stack framing in StrainX’s round is doing a lot of work. They call internal manufacturing a strategic choice for owning process knowledge and long-term defensibility, which is a real moat argument.

But India’s food-grade precision fermentation CMO infrastructure is still coming together outside pharma, so building strain engineering, downstreaming, plant operations, and commercialisation in-house was also the only path to 10,000-litre scale. Both can be true.

The harder question is what that combination costs to defend. StrainX is carrying the entire stack plus a 100-person team on a single Series A, while Western peers raising similar tickets stay asset-light through contract capacity and route burn into strain work and customer development. Whether full-stack compounds into defensibility or becomes a CAPEX overhang depends on how quickly the Indian CMO layer matures around them.

🌱 Resurrect Bio closed its Series A at $10.3M to restore crops’ natural disease defences through gene-editing targets

• The UK startup, spun out of The Sainsbury Laboratory in Norwich, identifies how pathogens suppress plant immunity and pinpoints the edits needed to switch defences back on. The round follows an $8.1M initial close in February.

• Plants rely on NLR immune receptors to fight off threats, but pathogens secrete effector proteins that bind to these receptors and shut down the response. Resurrect Bio’s FloraFold AI predicts those protein-protein interactions and screens them in-silico and in-planta, then hands seed company partners the exact gene-editing template to break the binding.

• The funds scale the team and develop resistance traits in major crops, building on a joint development agreement with Corteva in corn. The model sidesteps chemical inputs and works across most crops, pathogens, and pests, opening room for more deals with seed companies and breeders.

Investors: Corteva Catalyst, Calculus Capital, Pymwymic, Future Planet Capital (UKI2S), SynBioVen, AgFunder

Source: AgFunderNews

Thoughts 🤔

Corteva Catalyst has now made ~6 biology-first bets in twelve months, spanning microbes, peptides, AI proteins, and plant immunity. Resurrect Bio is the latest. The cadence and breadth point toward a distributed external R&D function rather than discrete corporate venture activity.

Synthetic crop protection registration costs have crossed $300M with 12-year timelines, regulatory windows are narrowing, and pathogen resistance is eroding existing chemistry. Catalyst lets Corteva access biological mode-of-action innovation through joint development agreements and pre-negotiated licensing options, without carrying internal R&D overhead.

This could be the template for how big ag runs R&D for the rest of the decade. If it does, value accrues to platform companies with optionality across incumbents, not to those who go exclusive early. The tell will be how many of these six investments convert to exclusivity over the next 18-24 months.

🐄 URUS acquired AgriWebb to bring integrated data infrastructure to the global beef industry

• The Australian livestock management platform collects field and cowshed data for farm mapping, grazing, and inventory tracking across 10,000+ farms, 23 million animals, and 150 million acres in 26 countries. It also acts as supply chain infrastructure for McDonald's, Nestle Purina, Wendy's, Ahold Delhaize, and Sainsbury's.

• URUS runs nine brands across dairy and beef genetics, reproductive services, and dairy software. AgriWebb pushes the platform to 25 million animals and extends URUS’s dairy flywheel into beef, linking breeding, animal health, sustainability, and traceability in one system.

• The deal reflects a wider structural shift: livestock technology is moving away from standalone tools toward integrated systems connecting genetics, animal health, environmental data, and supply chain traceability into something that functions more like critical infrastructure.

Source: AgFunderNews

Thoughts 🤔

URUS already runs a genetics-data flywheel in dairy through VAS and DairyComp, where individual-animal monitoring feeds back into which semen gets sold next. Beef has historically broken that loop because grazing systems are extensive and data-poor. Building telemetry across 10,000 farms in 26 countries is a 10-15 year capital problem, so URUS bought the instrumentation layer instead of building it.

The genetics-as-platform frame also reframes what AgriWebb is worth to this specific buyer. Standalone, it's livestock SaaS with thin comparables. Inside URUS, it's the input layer that lets dairy-style genetics decisions extend into beef, where AI penetration has plateaued and Scope 3 buyers are creating new demand for producer data.

🍫 California Cultured and UC Davis won $2.8M in US government grants to cut the cost of cell-cultured chocolate

• The California startup is working with UC Davis to scale its cultured cocoa platform, with commercial manufacturing slated for early 2027 to fulfil a first purchase order. The grants from BioMade and NSF are part of a 14-project DoD-backed push to strengthen domestic biomanufacturing.

• Current cellular agriculture economics for cocoa are punishing, with steel bioreactors, high-pressure steam sterilisation, and low batch productivity all driving up operating costs. The team will design custom high-density polyethylene (HDPE) bubble bioreactors, test alternative sanitisation strategies, and run semi-continuous operations with real-time in-line biomass monitoring to lift volumetric productivity.

• Internal tests show the HDPE reactors outperforming stainless steel in plant cell culture. The work also feeds into low-cost drying, food-safe media, and strain productivity, with techno-economic and life-cycle analyses to test transferability across plant, algal, microbial, and fungal systems.

Source: Green Queen

🧫 Melazyme raised $2M seed to advance precision-fermented melanin and sweet proteins platform

• Founded in 2025 by two Perfect Day alums, the US startup uses precision fermentation to make biomolecules, led by melanin. It engineers strains for high-yield melanin synthesis on renewable carbon feedstocks and uses solvent-free purification to yield a powder it calls Black Gold.

• Melazyme claims its melanin reaches >99% purity, well above the 70-80% from cuttlefish-extracted melanin and the 75% of chemically synthesised versions. The naturally occurring biopolymer combines broad-spectrum UV absorption, chemical stability, and strong affinity for metal ions, opening applications across cosmetics, functional coatings, filtration, and rare-earth element recovery.

• Near-term commercial focus is cosmetics, where Melazyme is engaging global manufacturers and has developed a melanin precursor that binds to hair keratin to restore colour without ammonia or oxidative dyes. It has also advanced brazzein, a heat-stable sweet protein from the West African Oubli fruit, 500-2,000x sweeter than sucrose, with commercial partners.

Investors: SeaX Ventures, Stellaris Venture Partners, Plug and Play Ventures

Source: Green Queen

Thoughts 🤔

The melanin-cosmetics framing makes Melazyme look like a category pioneer, but from my light research, it is the second venture-backed entrant on this molecule. IndieBio-backed Avisa Myko has been at it since 2019 on a cost-collapse pitch, claiming $0.20/gram melanin versus a $400/gram reference.

Melazyme is going the other way, leading with 99% purity versus 70-80% for cuttlefish-extracted and 75% for chemical synthesis. My read is that this is less a head-to-head and more a category bifurcation. Cost wins mass-market sunscreen and PPD-free hair dye. Purity wins premium cosmetics and any medical adjacency.

Separately, I would treat the brazzein side of the platform as narrative more than commercial intent. If they do get into the brazzein market, Melazyme is entering one of the most over-crowded subcategories in precision fermentation. If there is no GRAS pathway disclosed within 12-18 months, I’d treat brazzein as platform decoration and assume the real business is melanin.

🐄 Triple Bio raised €1.5M to advance lipid-based feed additive platform to cut methane and boost milk yields in dairy cattle

• The Netherlands-based startup runs two lipid formulations. RumeNRG-PL encapsulates existing methane inhibitors like bromoform, protecting actives from rumen degradation and enabling gradual release. RumeNRG-Mx1 is a standalone additive that redirects hydrogen flow in the rumen without any loaded compound.

• Rather than suppressing methanogens, the approach makes hydrogen more bioavailable to fermentative bacteria that generate most of the animal’s metabolic energy. In vitro rumen simulations showed a 28% boost in volatile fatty acid production, which Triple Bio says could mean 5-10% higher milk yield. The encapsulated formulation also matches methane reduction at 500x lower dose.

• Live-animal trials run later this year, with proof-of-concept data feeding a larger 2026 round. The longer-term ambition: one product line delivering productivity gains and up to 50% methane reduction without any loaded inhibitor.

Investors: Nucleus Capital, Positron Ventures, Climate Club

Source: AgFunderNews

Thoughts 🤔

Triple Bio’s near-term product is aimed at the companies already in enteric methane sitting on stabilisation, dosing, and palatability problems with their own actives. A 500-fold dose reduction on a known inhibitor is a margin gift to Rumin8, Symbrosia, and the bromoform/3-NOP cohort, not a competitor.

The split mirrors how pharma separated APIs from formulation once actives cleared regulatory and delivery became the next defensible layer. Rumin8 patented oil-based stabilisation for tribromomethane. DSM spent over a decade taking 3-NOP through EFSA and FDA. With the molecules now squeezed by dose-related cost, safety thresholds, and consumer backlash, encapsulation is where competitive economics are won, and the actives commoditise underneath.

🤝 Endless Food Co lands Dagrofa deal to push bean-free chocolate into Danish foodservice

• Denmark’s Endless Food Co has signed a strategic partnership with Dagrofa Foodservice, one of the country’s leading foodservice distributors, to get its cocoa-free chocolate alternative THIC (This Isn’t Chocolate) into professional kitchens nationwide.

• THIC is built from upcycled side streams, including brewer’s spent grain, cacao husks, and oat milk pulp, which make up to 40% of the product. The rest is wild-harvested shea butter and organic beet sugar, processed through traditional chocolate-making into a powder that drops into existing production lines.

• The deal opens a major new commercial channel for the startup as cocoa prices remain under sustained pressure from climate-driven supply shocks. It also follows the company’s earlier retail push with 7-Eleven Denmark, signalling a parallel build across foodservice and convenience retail.

Source: Green Queen

Thoughts 🤔

The cocoa-free chocolate story has been written mostly through retail and industrial confectionery rails. Barry Callebaut-Planet A Foods, Cargill-Voyage Foods, Mars and Nestlé picking up ChoViva. Endless Food Co’s Dagrofa deal opens a different rail and one I suspect is underrated. Dagrofa is Denmark’s market leader in canteens and hotels, runs ~35,000 SKUs across a nationwide fleet, and already supplies Compass Group’s roughly 100,000 daily meals in the country.

Institutional foodservice is a structurally different buyer to retail confectionery. Procurement turns on cost per kg, batch consistency, supplier reliability, and operator ease. The channel is slower to enter but stickier once in, and largely insulated from the retail cycle driving most cocoa-free coverage.

🥟 Intake unveiled Takein to push precision-fermented yeast protein and fibre into global B2B supply

• Takein is the new ingredient arm for the South Korean startup’s precision-fermented yeast protein and fibre, marking its shift into a ‘materials-focused’ model ahead of an IPO. The launch comes a year after Intake’s $9.2M Series C to scale its grape-derived wild yeast strain.

• The yeast protein isolate is positioned as a third-generation whey replacement, with a complete amino acid profile and what the company claims are higher digestion and absorption rates and lower allergy risk than dairy whey. The yeast-derived fibre is extracted from the cell walls left after protein fractionation and contains beta-glucan and mannose, which Intake says support immune function and gut health.

• Intake will trial commercial use through its own brands first, ProteeOne protein powders and Sugarlolo’s sugar-free range, before scaling supply to global manufacturers.

Source: Green Queen

🧫 Capra Biosciences cut fermentation monitoring costs with chickpea-sized wireless biosensors floating inside its bioreactors

• The Virginia-based startup, which makes retinol and other high-value ingredients via biomanufacturing, is partnering with Boston University on a wireless network of free-floating microbial-electronic sensors that pair engineered light-emitting cells with embedded electronics. Backed by NSF and BioMADE, the sensors will be miniaturised and tested at Capra's 10,000 sq ft pilot facility.

• Traditional pH, dissolved oxygen, and CO2 probes cost $5,000-$10,000 each, require insertion into the broth, risk contamination, and give a single-point view. Capra says the new biosensors could hit $10-$100 per unit at scale, measure multiple analytes through an onboard potentiostat, and float at different points for spatial visibility.

• The economics matter most for Capra’s modular setup, which runs multiple 1,000-L units rather than one large tank and could eventually involve hundreds or thousands of reactors per facility, making sensor cost a material driver of unit economics. The company has also just launched what it claims is the first fermentation-derived salicylic acid for personal care, and says it has run continuous production of that molecule for up to 100 days.

Source: AgFunderNews

Thoughts 🤔

The Capra biosensor story is being framed as a cost story. I think the more interesting frame is what free-floating sensors enable. Industrial fermenters are full of gradients. Oxygen, pH, substrate, and shear all vary across the vessel, and current control systems essentially ignore that because they can’t see it.

One probe near the wall is treated as a fair proxy for a well-mixed tank that may not really exist at scale. The mainstream workaround has been mechanistic CFD modelling and more aggressive mixing, both of which hit physical and energy limits as reactors grow.

A wireless network of free-floating sensors changes the data substrate. It gives spatially distributed, time-resolved readings of pH, dissolved oxygen, redox state, and bioluminescent stress signals from engineered Yarrowia lipolytica reporters across the broth. That is the missing input layer for the AI-driven fermentation control everyone has been pitching but few has had the data to actually train.

🇨🇳 Report: China is about to do to global agriculture what it did to solar and EVs

• Beijing is applying the same industrial playbook behind its dominance in solar, wind and EVs to food and agriculture. The 14th Five-Year Plan was the first to place food security alongside energy and finance as a pillar of economic security, and the 15th explicitly bets on synthetic biology, alt proteins and agricultural biotech. Commercialised GE maize and soya approvals in 2024 signal the policy machinery has switched on.

• By 2030, China’s soya bean imports are projected to fall by 23.5 million tonnes, a 25% drop worth roughly $12 billion. That is almost equal to everything the US shipped to China in 2024. Smaller contractions hit beef, poultry, dairy and egg imports, driven by feed reformulation, a 50% cut in avoidable food loss, and productivity gains on existing land.

• By 2040, the report projects China will flip to a net exporter across poultry, dairy, eggs and farmed aquatic products, with alt proteins already taking 14% of beef and 16% of seafood domestically. Producers in those categories will face Chinese exports in their home markets, on top of losing the buyer they were built to serve.

• The report models alt proteins meeting 35-55% of Chinese animal protein demand by 2050, with cultivated meat commercially viable in the 2040s. More importantly, it argues that China captures the upstream value chain, amino acids, fermentation infrastructure, and bioreactor supply, replicating its position in solar wafers and lithium cells.

• Exposure is concentrated. China absorbs 89% of Argentina’s soya exports, 71% of Brazil’s and 53% of the US’s, plus 75%, 54% and 41% of Argentine, Brazilian and New Zealand beef. Producers who move first on deforestation-free supply, traceability and market diversification will manage the transition. Those who don’t face simultaneous volume and price contractions.

Source: Systemiq

CAPITAL & CONVICTION

The sharpest thinking in agrifood and bioeconomy often happens off the record. My interview series brings it on the record:

• Why 2026 Is the Great Shakeout Year for Food and Ag Tech - EcoTech Capital’s Adam Bergman

• What It Takes to Build a Fundable Food Company After “Peak Stupid” - Siddhi Capital’s Steven Finn

• Engineering the Exit: How to Get Acquired in Deep Tech - SOSV’s Cyril Ebersweiler

• Turning the Industrial Biomanufacturing Graveyard Into a Winning Playbook - First Bight Ventures’ Veronica Breckenridge

• How Agrifood Tech Investing Is Shifting and Where Value Will Be Created - PeakBridge’s Yoni Glickman

Browse the full archive. More conversations dropping soon. Stay tuned!

Thanks for reading!

Let me know your thoughts in the comments or by replying to this email. If you want to connect with me on LinkedIn, you can find me here.

If you found value in this newsletter, consider sharing it with a friend who might benefit! Or, if someone forwarded this to you, consider subscribing.

Share

Subscribe now

Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

For Issue #145 of Better Bioeconomy, I sat down with Adam Bergman, Founder and Managing Director of EcoTech Capital.

EcoTech Capital is a strategic advisory firm working with food and agriculture companies on capital raising, strategic partnerships, and M&A. Unlike a venture fund, Adam is not writing cheques. He sits alongside founders as they navigate one of the toughest fundraising markets the sector has seen, and he has done so across roughly 15 years of ag tech deals, starting with one of the first of them in 2012.

Adam has spent more than twenty-five years in CleanTech investment banking. Before starting EcoTech Capital, he built and led ag tech and food tech banking practices at Citi and Wells Fargo, and set up Wells Fargo’s ag tech cohort inside its St. Louis innovation incubator. Along the way, he has worked on financings and M&A across Citi, Deutsche Bank, Jefferies, JPMorgan, UBS, and Wells Fargo, covering ag tech, food tech, biomaterials, energy, water, and mobility.

The formative thing to know about Adam is what he saw before he ever looked at a farm. As he put it, his first ten years in finance were a crash course in downturns. The Asian financial crisis, the bursting of the internet bubble, and the great recession all landed within one decade. Three of the largest implosions of the last fifty years, all before he got to ag tech. That matters because a lot of the investors and founders active in food and ag today started their careers after 2010 and have never really seen a market reset up close.

In our chat, we spoke about what happens on the other side of the coming wave of food and ag bankruptcies, the trust gap that has opened up between founders and investors, why this sector will never scale like software, and where he is bullish despite all of it.

Let’s jump in!

2026 is the great shakeout year, and only one version of it ends well

Adam expects 2026 to bring the largest wave of bankruptcies food and ag tech has ever seen. A meaningful number of companies are going to shut down, and the sector will split into one of two scenarios on the other side.

The hopeful version looks like this. A handful of companies emerge with viable business models and a real path to profitability. The capital that is still in the sector consolidates around them as clear category leaders. A few reach EBITDA positive, some exit, and private equity money starts flowing in behind the specialists.

That re-opens the sector to new LP commitments and puts food and ag back on the steady growth path it was briefly on in 2018 and 2019, before the 2020 capital flood pushed valuations to levels no financial model could justify.

The unhopeful version is that no clear winners emerge. Exits stay thin. LPs look at the numbers and walk away. “It is going to be very difficult to justify to LPs why they should come into a sector that raised $40 billion between 2018 and 2024 and returned probably less than $5 billion,” Adam said. That is not a pitch many allocators are lining up to hear.

Which path the sector takes is not really about how many companies fail. It is about whether the ones that survive can prove that disciplined, profitable growth in food and ag is achievable. If a small group does, the capital comes back.

An advisor can tell founders what an investor cannot

Adam’s day job looks different from most of the people I speak to. He is compensated on capital raised, not on the valuation he raises at, and he is not sitting on a board defending a mark. That changes what he can say out loud to a founder.

Founders and investors, he argues, are wired to be optimistic. They have to be. But that optimism makes it hard for either side to sit with risk for long. An advisor has room to take a more holistic view, walk through the risks in detail, and push back on decisions that look good on a pitch deck, but cost the company later. He does not have skin in the game the way an investor does, and he is the first to say so, but the distance is part of what makes the advice useful.

Nowhere is that clearer than on valuation. “Maximising valuation is an exercise you should be doing on an M&A sale,” Adam said. “It is not always your best outcome when raising capital, because you might be raising too much of it at too high a valuation.” Raise at a price the business cannot grow into, and the only way the investor gets their money back is by pushing the founder to run at a pace the company was never built for. Many companies chase a short-term win on price and run out of road eighteen months later.

Investor FOMO is dead, and trust has to be rebuilt one milestone at a time

One of the most structural problems in food and ag right now, according to Adam, is trust. Over the last decade, too many companies told investors they would hit milestones they never hit, and the market is still paying for it. “FOMO is dead,” Adam said. Investors are happy to open diligence, sit in it for months, and watch founders prove out what they said they would do before committing a dollar.

His advice to founders raising today is to create monthly or bi-monthly milestones. Tell the investor exactly what you will deliver and by when. Then go and do it, come back, and do the next one. Raising in this market is not about selling the vision any more. It is about building a small, public track record of hitting commitments so that the big one becomes believable.

He also warned against the old pitch muscle memory. In 2020-2022, investment decks were built around upside cases and “investment highlights”. In the current market, what matters is risk factors and how you plan to mitigate them. A founder who can walk an investor through their top three risks and name a strategic partner mitigating each one is in a different conversation from one still pitching hockey stick charts.

Founders should also brace for tighter runway expectations. Eighteen to twenty-four months timelines for use of proceeds are no longer the default. A lot of rounds today are sized for twelve months, with the promise of more capital if the milestones land.

Founders keep building what farmers never asked for

There is a second trust gap that gets talked about more often, but is acted on far less. It is the gap between what founders think farmers want and what farmers actually want.

Adam’s favourite illustration comes from a farmer and co-op operator he used to work with, who told him the same thing every time they spoke. What he really wanted was an ag tech company that could pull rocks out of his field. That was his biggest operational headache, and he had told plenty of founders about it. No one ever built it, because no one found the problem sexy enough.

The point is not really about rocks. It is that a lot of products in this sector get built on the founder’s assumption of what a farmer needs, not on what a farmer has actually said they will pay for. Adam told me he used to ask early-stage founders a simple question whenever they pitched him. “Is it a big problem for them, or is it something that’s a nice to have, not a need to have?” In a lot of cases, the founder did not know, because they had not asked. They were confident the problem existed. They had not confirmed it was worth solving.

The second piece of the farmer story is risk. A farmer’s field is their livelihood. If a new technology kills a crop or knocks down yield, that is a direct hit to their income for the year, with no rerun until the next season. No other industry asks an operator to stake a full year of revenue on an unproven product from a startup. Proving anything out in a field takes time, and it takes more time than most investors and founders have been willing to wait.

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Calling it tech does not make it scale like tech

The word “tech” is doing a lot of work in how this industry talks about itself. In practice, what is really being built is industrial ag and industrial food. The buyer, whether a farmer or a food manufacturer, moves slowly. Farmers buy on an annual cycle tied to planting season. Miss it, and you wait twelve months for another shot. Enterprise software does not work that way, and valuing a company as if it does is how companies run into issues.

Adoption inside a single farm also takes years, not quarters. A typical winning product might land on 1 to 2% of the farm in year one, 5 to 10% in year two, 20% by year three, and full penetration by year seven or eight if everything goes right. “Its ability to scale is going to be predicated on getting a farmer to purchase it, or getting a consumer to buy a new product. That is not easy.” A SaaS rollout inside an enterprise is more binary. An ag rollout is a multi-year crawl through field trials, weather, and the farmer’s own risk tolerance.

The exit math matches the adoption math. There are no big IPOs coming in ag tech. The last real one, Adam pointed out, was probably Monsanto, about thirty years ago. Most exits happen through M&A, usually under $500 million and often under $250 million. Strategics, like the major input and equipment companies, are not lining up to pay premium prices for unproven technology. They will buy the tech when it is ready, bring the team along, and budget another $50 million of R&D on top to get it to scale.

The bullish case starts with what makes the farmer more money

For all the caution, Adam is bullish on a handful of areas, and the logic underneath all of them is the same. Each one has a clear path to providing farmers with a positive ROI in one season or less.

The first is automation & robotics and digitisation, with one important caveat. The winners in the short term will be additive automation, tools that make an existing picker or farmer more productive, not systems trying to replace farm labour entirely. Humanoid robots in the field are a long way off.

But the structural pressure from shrinking labour supply and rising labour costs is a real challenge in every developed country, and it is not going away. “Automation & robotics needs to be there to replace farm labour,” Adam said, and not just in the US. Picking crops in the heat is not going to win the recruiting war against a fast food chain paying the same wage with better working conditions.

The second is AI in the field. He has watched computer vision tools cut pre-harvest crop loss roughly in half at client operations, from 25 to 30% down to 10 to 15%, which on a thin-margin farm can move the business from breakeven to a 20% EBITDA margin. The only catch is psychological.

As Adam puts it, “a grower is going to see the data that shows them that they’re not doing a great job farming. That’s the only way they’re going to be able to improve performance.” Nobody loves being told they could be doing their job better, but the economics are hard to argue with.

The third bullish bet is advanced irrigation, from an unusual angle. Adam thinks the hyperscalers building new data centres could end up funding farmers to switch from flood to drip irrigation, because the water savings can be redirected to cooling data centers at scale. That is a capital source the sector has not really priced in, and it could move advanced irrigation faster than another round of climate funds ever did.

The fourth is alternative proteins, but not where most of the capital has gone so far. Cultivated meat, in his view, is at least a decade away from solving its scaling and cost problems. He is more interested in what he calls “future proteins” more broadly, where global demand for animal protein is outrunning supply, and the gap has to be filled by something. The technology is still early, and the taste is not there yet, but the midterm direction is real.

The bear case starts where the ROI story falls apart

On the other side of the ledger, Adam has concerns about parts of ag biotech, especially biologicals. The issue is not the science, but the challenge of showing a grower a short-term positive ROI. A great biological product in a bad weather year will look mediocre, and a mediocre product in a great year will look fine. When the signal from your own product is that noisy, farmers have no structural reason to adopt.

He is also watching the traditional CPG sector brace for the GLP-1 wave. People on GLP-1 eat roughly 80% less dessert, and the knock-on effects for the companies filling the middle of the grocery store are significant. The legacy CPG names either reinvent themselves around healthier, GLP-1 compatible products, or they watch a meaningful chunk of revenue disappear. Adam is bullish on the health outcomes overall. He is also honest that he does not yet know which specific businesses will emerge as winners.

Underneath both calls sits the deeper point Adam kept coming back to across our conversation. Food and ag are held to a higher standard than almost any other startup industry. The “move fast and break things” playbook does not apply, because the cost of breaking things is paid by a farmer’s harvest or a shopper’s plate. “If it is a break it, you’re probably sidelined for a decade,” Adam said. Companies in this sector need to launch when they are ready, not when the pitch deck says they are.

Want to connect with Adam?

Adam is open to hearing from founders and investors navigating this market. You can reach him at adam@ecotechcap.com

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not reflect those of my employer, affiliates, or any organisations I am associated with.

Thanks for being here. For Issue #144 of Better Bioeconomy, I sat down with Justin Ahmed, Director at Beanstalk AgTech.

Beanstalk is a Melbourne-headquartered innovation firm that operates across two arms: Beanstalk Advisory, which works with agribusinesses, governments, and development partners across the Indo-Pacific, and Beanstalk Ventures, which builds and invests in impact-focused agrifood companies. Founded in 2017, the firm now has a presence in Sydney, Perth, Brisbane, Hobart, and Singapore, and has delivered programs across Australia, Singapore, Vietnam, Indonesia, and India.

Justin leads the firm’s work translating ag tech innovation into commercial outcomes. Before Beanstalk, he was a project leader within McKinsey’s Global Agriculture practice, with prior roles at Enclude (now Palladium), the Syngenta Foundation, and CIMMYT. He has on-the-ground experience across North America, Africa, South Asia, and Australia, which gives him a sharp view of how ag tech moves between geographies.

In our conversation, we talked about why ag tech innovation rarely fails on the science, what separates Australian and Southeast Asian commercialisation pathways, where corporate-startup partnerships break down, how founders should think about non-dilutive capital, and what makes Justin both bullish and bearish on the sector right now.

Multiple valleys of death sit between ag tech science and the market

Most ag tech innovators frame their commercialisation challenge around a single valley of death, the gap between R&D and market. Justin pushes back on that framing. In his read, the gap is a sequence of separate chasms, each requiring a different kind of partner to cross.

“The biggest gaps in agrifood innovation rarely sit in one single place,” he said. “It’s a game of the weakest link. They sit between the science and the market, between pilots and procurement, between public sector ambition and private sector execution, between the capital models that already exist and what’s really fit for purpose.”

The work of bridging those gaps is the translational layer. It’s the connective tissue that turns a working technology into a working business: the partnerships, contracts, capital structures, regulatory pathways, distribution agreements, and customer relationships that move an innovation from “this works in a lab” to “this is being used and paid for at scale.” The technology, the customer, and the capital each sit on their own side. The translational layer is the infrastructure that connects them, and it’s the layer that most ag tech ecosystems leave unbuilt.

That framing is what shapes Beanstalk’s structure. The firm sits across advisory, venture building, and investment advisory because each discipline addresses a different valley. Advisory work helps governments, corporates, and donors define the right problems. Venture building converts those problems into commercially grounded companies. Investment advisory matches those companies to capital that fits their stage, risk profile, and growth pathway.

The stakes of getting this translational layer right are large, and Beanstalk has the data to show it. In the firm’s State of the Digital Agriculture Sector report covering low- and middle-income countries, the team mapped ~1,400 active digital agriculture solutions across Latin America, South Asia, Southeast Asia, and Sub-Saharan Africa, and modelled a roughly $450 billion per annum gap between a “thriving” and a “derailed” decade for the sector.

A more recent report, The Opportunity for AgriTech Investment in Southeast and South Asia, authored with Omnivore and Briter Bridges, narrows that lens to the SEASA region: agritech adoption could unlock around $90 billion per annum in Southeast Asia and around $160 billion in South Asia by 2033. The variance comes down to whether the systems around the technology, including capital, policy, partnerships, and trust, are functional enough for adoption to compound. Technology readiness is rarely the limiting factor.

What separates ag tech that scales from those that don’t

Across both Australia and Southeast Asia, Justin sees a single pattern that distinguishes the ag tech companies that reach commercial scale from the ones that stall. Founders who succeed stay extremely close to customer economics. They understand what moves the margin for their customer, even when those drivers vary widely by geography, crop, or value chain position. The practice of building a commercial model around where margin is being created looks the same everywhere, even when the inputs change.

Great technology, in his view, is the easier part. “Commercialisation is a separate skill from innovation,” Justin said. “A lot of the companies that we see that have struggled, we’d say waited too long to invest in that.” The ones that scale invest in commercial capability early, alongside the technology, rather than treating it as a problem to solve once the science works.

The market-specific differences sit on top of that common foundation, and they shape what “commercialisation” looks like in practice. Australia, in Justin’s framing, looks more like Canada or Eastern Europe than Asia. It is highly professionalised, tech-intensive, consolidated, and farmer-driven. Profit pools sit with large commercial producers. That structure means revenue realisation, customer acquisition, and after-sales support all scale on a different effort curve than they do across smallholder Asia.

Justin pointed to SwarmFarm Robotics and DataFarming as examples of Australian startups that have grown well in that structure. Both built early credibility with rural and regional ecosystems, leaned hard on Research and Development Corporations (RDCs), agronomist groups, and grower bodies, and earned distribution leverage through those channels first.

But there’s a catch. The real unlock for Australian ag tech is almost always getting out of Australia. The domestic market is too small to support a venture-scale outcome alone. So Australian innovators end up in California, Texas, or the Canadian Great Plains, wherever there are large-scale commercial farms that resemble what they built for at home.

Beanstalk’s original thesis was that Southeast Asia could be a strategic alternative for Australian innovators, leveraging Australia’s regional positioning. The reality has been more nuanced. A solution built for 5,000-hectare Australian commercial farms doesn’t pivot easily to 1-hectare smallholders in Java. The innovators who have had real success in Southeast Asia tended to flip the question, asking “Is my value proposition actually better in this context?”, and then committing to localisation rather than treating the region as a secondary market.

Southeast Asia rewards a different posture from the Australian playbook. “It’s all about listening, iterating, adapting,” Justin said. “Not just developing the solution that solves the right technical problem, but really understanding the complex reality in which it’ll operate.” Founders who do well over-invest in literacy and market education, build trust at the pace of seasons rather than quarters, and accept that scaling deeply and slowly beats scaling shallow and fast.

The data backs this up. In a recent baseline study Beanstalk conducted with the Indonesian government, surveying ~1,300 respondents on access, use, and benefit from digital ag tech, where ~80% of active users self-reported real benefits in productivity, cost savings, and reduced operational complexity. The technology delivers when it gets through. The harder problem is building trust fast enough for adoption to take hold.

Corporates should be looking for complementarity, not capabilities that mirror their own

Beyond the farm gate, ag tech adoption blockers sit at the interface between startups and agribusinesses, and Justin’s read is that corporates and startups frequently misalign on what a partnership is even for.

The mismatch shows up in two distinct archetypes of corporate engagement. The first is corporates running venture vehicles, where the question is what they’re investing in and why. The second, and where Beanstalk does most of its work, is corporates trying to integrate new technology into their core business. That second archetype is where the bigger gap lives.

What corporates say they want is fairly consistent: proven impact, real traction, a credible business behind the science. Smart corporates do look for that, but they look for it in the form of depth of impact for a small set of core customers, rather than the broad market validation many startups try to lead with. The trap is what comes next.

Corporates often evaluate startups against capabilities that mirror their own internal capabilities, when the bigger opportunity is to find genuine complementarity. What corporates uniquely bring to a partnership is a commercial ecosystem (manufacturing assets, distribution, customer access) that can shift a promising technology from trial phase to real scale. Treating a startup as a smaller version of an internal team forecloses that pathway.

The other failure mode sits inside the corporate itself. Companies often look for “plug and play” solutions, underestimating the readiness required within their own teams to use them. A new ag tech tool requires culture and capability inside the corporate to define, deploy, and build around the technology. The right tech partner understands that the corporate’s own staff need to be taken on a journey, with support on how they use the solution, before any pilot translates into adoption.

Justin’s takeaway for both sides: corporates need to be willing to be the test bed, and startups need to design with strategic partnerships and commercial pathways in mind from day one. That maps to a thesis Beanstalk laid out in its recent report, that the ag tech most likely to succeed in the region is the one that solves corporate challenges from the outset and builds strategic partnerships into the growth pathway from day one.

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Most ag tech founders pick the wrong capital and define the exit too late

Capital strategy is another area where some of the most consequential founder mistakes happen. There is no single right capital stack for ag tech, since the right answer depends on sales cycle, development cycle, capital intensity, customer acquisition rate, and how revenue is realised. But founders who get it wrong tend to get it wrong in the same direction.

The reactions to Beanstalk’s Omnivore-commissioned report told the story. Investors found it sobering. Founders found it deflating. Justin’s reading is that both reactions reflect a misunderstanding of what the report was scoped for, which was specifically the venture capital opportunity in ag tech. That’s a narrower pipeline than the full set of viable ag tech businesses.

As he put it, perhaps 5% of agrifood businesses have the kind of profile that warrants a venture capital outcome, meaning capital-light enough, scalable enough, with valuation upside in line with where venture multiples now sit. Most ag tech sits outside that profile, and the right capital path for those companies is different instruments entirely.

That recognition shapes how Beanstalk works with the ventures it builds. Rather than running a fixed-fund model that pushes everything toward venture-style returns, the team works with founders to identify the right capital pathway and link them to capital with the structure and return expectations that match.

The discipline founders apply to picking equity investors, including finding the right partner and evaluating fit, often disappears when it comes to grants. “People take a spray-and-pray approach to getting grants and public funding,” Justin said. “And that’s really dangerous.” Every minute a founder spends on the wrong grant is wasted effort. And it’s just as easy to lock yourself into a non-dilutive relationship that drags you off your growth pathway as it is on the equity side.

The other recurring mistake is treating exit strategy as something that gets defined at Series B. Particularly in Southeast Asia, where exit pathways are thinner, and acquirer universes are smaller, Justin argued that founders need to map their likely acquirers from day one, even when an IPO is the eventual goal.

That mapping informs everything downstream: which capital to take, which partnerships to build, which milestones to optimise against, and which corporates to position as future strategic investors before they become acquirers. Capital pathway and exit pathway are the same conversation, in his view, and treating them as separate ones is what locks founders into structures they later have to unwind.

Government-led ag tech adoption programs that work are the ones built to outlast political cycles

In addition to working with founders and corporates, a meaningful share of what the firm does sits with governments across the Indo-Pacific, helping them design and run ag tech adoption programs.

Government adoption programs are where Justin sees the widest variance between intent and outcome, and where political cycles make the right answer hardest to deliver. The programs that move the needle, in his view, share two things: a long enough timeline to match how agriculture works, and a shared definition of success that can survive across departments and government cycles.

The timeline piece is structural. Agriculture is a slow relationship-building environment by nature. Adoption takes years and is built on real trust. Seasonality matters. A technology has to demonstrate capability across multiple cycles before farmers commit. Programs running on a two-to-three-year horizon, or shorter, rarely deliver on that timeline.

Australia, Justin argued, is underrated on this front. The country runs a model called Cooperative Research Centres (CRCs): ten-year investments in collaborative research that pull innovation out of universities and into industry ecosystems. That timeline is what it takes to move past transactional engagement and build the trust required for ecosystem-level coordination.

The shared-definition piece is harder to see, and Beanstalk’s work with the Indonesian government on its digital ag tech policy and investment roadmap is what brought it into focus. When local agritech startups raised hundreds of millions of dollars a few years ago, the government wanted to know whether headline funding rounds were translating into real impact for smallholder farmers, or whether they were vanity metrics dressed up as success.

Answering that question turned out to be the work itself. Before any pilot could be designed, the government needed a common view across departments and agencies on what impact meant for the sector and how it would be measured. That work took the form of a dashboard that the relevant agencies could track and manage, built into the systems they already used.

The shift, from defining impact in a report to defining it in a tool the government uses every day, is what makes subsequent programs cumulative rather than parallel. Without it, departments run programs against different definitions of success, and even individually successful pilots fail to compound into ecosystem-level change.

Bear case is in the narrative, bull case is on the ground

Zooming out, Justin offered a clear split between what worries him and what gives him conviction.

The bear case is narrative. “Venture and capital is a land of narrative in many ways,” he said. He’s seen sectors outside ag tech find their bottom and start to rebuild after the global capital downturn. Ag tech, he’s not sure has reached that point yet. His worry lies in how generalist investors read the space. The headline narrative says ag tech has underperformed, and generalist allocators who haven’t been close to the sector tend to take that at face value rather than digging into where the real opportunity sits. That self-reinforcing cycle is what the Omnivore report was partly written to challenge.

The bull case is, paradoxically, on the supply side. Founders are adapting to the new reality faster than investors are. They’re more disciplined, more focused on learning from the mistakes of the first wave of ag tech, and increasingly clear-eyed about what kind of capital they need. Every second-tier and third-tier city Beanstalk visits in Indonesia turns up another 30 innovators with real energy.

What gets Justin most excited, though, is the role governments in the region are starting to play. Vietnam, Indonesia, Cambodia, Thailand, and Singapore all have governments that he sees as forward-thinking on ag tech, working out where they can be a catalyst in the ecosystem they’re trying to build.

That kind of government engagement, paired with disciplined founders, is what closes the translational layer he kept returning to throughout the conversation: the missing infrastructure between science and market, pilots and procurement, public ambition and private execution. The technology isn’t the bottleneck. The systems around it are, and they look more buildable now than they have in a long time.

Want to connect with Beanstalk?

For funders or investors looking to have more impact in the agrifood-tech ecosystem, reach out to Justin at justin@beanstalkagtech.com, follow their LinkedIn, or sign up for Beanstalk’s newsletter.

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not reflect those of my employer, affiliates, or any organisations I am associated with.

In Issue #143 of Better Bioeconomy, I want to explore a question that keeps surfacing as I read about AI-mediated purchasing: what happens when AI agents start filtering food choices before consumers see a shortlist?

Most commentary on AI and food retail focuses on the final act: the autonomous grocery order. That story is real, but it is not yet mainstream. The part that is already at scale, and underexamined, is the filtering step.

Before AI buys food for you, it is already deciding what gets considered. The shift underneath is structural: value is migrating from persuasion to proof, and legibility, the ability to produce machine-readable evidence of what you claim, is becoming the new shelf space.

The optimistic version of this story says quality finally gets rewarded because machines can see it. I think the direction is right. But the distributional question keeps pulling me back. The proof economy has a monetisation layer, a definitional politics, and a cost floor that together determine who participates and who gets excluded. That is what I want to sit with in this piece.

Let’s dig in!

AI filtering is already reshaping what gets considered

The share of US shoppers using AI assistants jumped from 12% to 35% in a single year (Adyen 2026 Retail Report, Censuswide survey, n=2,000). The definition is broad and captures everything from product research to checkout delegation, but even accounting for that breadth, the year-on-year move signals a behavioural shift that has already happened.

The pattern extends beyond the US. A Deloitte Asia Pacific report found nearly three-quarters of consumers in the region already use AI to discover and compare products, and 29% of APAC consumer businesses have adopted agentic AI, a figure projected to reach 76% within two years. At GrabX 2026, Grab launched an AI shopping agent that builds a grocery cart from a photo or voice note, with smart substitutions across merchants, no item-by-item browsing required.

Most of that activity is filtering, however, not directly buying. A 2025 Attest survey found 63.8% of consumers had used AI tools for food-related activities, with the majority concentrated in recipe recommendations and meal planning rather than checkout delegation. And when researchers at Yale, Columbia, and the University of Chicago tested what happens to products inside agent-mediated selection (featured in Kantar’s “What Is Your AI Agent Buying?” analysis), they found a 20-40% reduction in selection probability when a key product attribute was missing from the structured data.

Autonomous AI purchasing, meanwhile, remains structurally constrained. A Bluestone PIM survey from March 2026 found 73% of consumers uncomfortable with AI completing purchases autonomously, 68% assuming results are commercially influenced, and 65% refusing to store payment details. These are concerns about delegating spending authority and exposing household consumption patterns, the kind that do not go away just because the technology improves.

But filtering requires no delegation. The user asks a question, the agent answers, the user decides. The criteria are machine-readable or they are invisible. Packaging design, brand origin story, and shelf position, none of these register inside a filter that needs documented certifications, structured nutritional attributes, and composition data. That behaviour is already at scale, and it does not require autonomous purchasing to reshape which products get considered.

The Kantar figure is the one I keep returning to. A product losing 20-40% of its selection probability because its attributes are not machine-readable is facing a structural disadvantage. Which raises two questions. What determines whether a product is legible to the filter? And who controls the infrastructure that makes legibility possible?

When machines shortlist, value migrates from persuasion to proof

Here is a useful test for a food brand right now: if an agent filtered your product tomorrow, would it find machine-readable proof of what you claim, or would it find a story on your packaging?

If the answer is a story, the product is structurally disadvantaged in agent-mediated commerce. Better creative does not help a product score inside a filter that requires documented certifications, structured nutritional attributes, provenance chain records, and composition assays. The selection penalty that the Kantar study documents is what that disadvantage looks like in practice.

I find it useful to think about the infrastructure that processes these structured inputs in three layers.

At the top sit the agent platforms: OpenAI, Perplexity, Anthropic, Amazon Rufus, Walmart Sparky, and Instacart Cart Assistant. This is the interface layer, the surface where consumers interact, and shortlists get assembled. It is the layer most commentary focuses on because it is visible, named, and contested at high valuations.

At the bottom sits upstream measurement: soil sensing, nutrient assays, spectroscopy, and satellite imagery. This layer generates raw data about what is in the soil, what is in the crop, and what environmental and agronomic conditions shaped the harvest.

In the middle is what I am calling the claims-and-verification layer: the infrastructure that takes upstream measurements and translates them into machine-readable claims that agent platforms can query. This layer spans product content syndication, supply chain traceability, standards frameworks like GS1’s Digital Product Passport standard, and scoring systems that translate attribute data into structured outputs. These are different entities serving different functions, but they share a structural role: they manufacture the legibility signal that agents consume.

Antony Yousefian has argued the directional case well in The End of Brand Trust and The End of the Impulse Buy: verification costs collapsing, brand equity eroding, the farmer and soil layer reclaiming value. I agree with that direction. What I want to sit with here is where value concentrates inside the verification economy once it arrives, and who gets excluded from it.

My working view is that the translation step is where pricing power is most likely to sit, because it is the step neither the agent platforms nor the farms can fully own on their own. Platforms need verification but have incentives to commoditise it. Farms generate data, but most lack the aggregation infrastructure to translate it into agent-readable claims at scale, whether due to fragmentation, heterogeneous data formats, or the cost of standardisation across operations.

That is the clean version of the proof economy: quality that can prove itself gets rewarded, and the translation layer captures margin for making the proof legible. But three forces complicate the picture, and each one tilts the proof-equals-access equation in a different direction.

Three forces shift the proof-equals-access equation

1. Agent monetisation turns the shortlist into an advertising surface

The parallel I keep reaching for is SEO. In the early years of search, the dominant assumption was that good content, accurately indexed, would surface organically. Paid search gradually displaced organic results in most high-commercial-intent categories, and what emerged was a two-tier system where relevance determined eligibility and spend increasingly determined position within the eligible set.

Agent commerce is building a similar infrastructure. Stripe’s Shared Payment Tokens let agents pass scoped payment credentials to merchants. OpenAI introduced Instant Checkout in ChatGPT, then shifted toward directing shoppers to merchant storefronts, with Shopify building its own agentic storefront offering. Instacart’s Cart Assistant runs on the same commerce stack that underpins Instacart’s retail media business. Walmart Sparky now operates inside the Walmart app, ChatGPT, and Gemini, with checkout kept on Walmart’s own rails.

An agent monetised through retailer ad networks and platform revenue shares may not function as a neutral representative of the consumer’s dietary intent. Its shortlist would reflect some equilibrium between consumer preferences and platform economics, optimising for health within the constraints of whoever is paying for the infrastructure. That is a different dynamic from the rational health-optimiser that some of the more optimistic commentary assumes.

Machine-legibility gets a product into the eligible set. If agent commerce follows the search pattern, the position within that set will increasingly reflect spend.

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2. Whoever defines “healthy” controls the filter

When a user tells an agent “keep it healthy” or “low-inflammatory,” a translation has to happen. The natural-language instruction must map onto filter criteria applied to a product database. That mapping is unlikely to be neutral, and the entity that controls it shapes the outcome for the products downstream.

The FDA finalised an updated “healthy” nutrient content claim in December 2024, its first revision since 1994. It is a labelling standard. It is not a product-level scoring API that an agent can query in real time. When an agent operationalises “keep it healthy,” it queries whichever database has already done that translation work.

A handful of private systems have built that translation layer, and they do not all agree on what “healthy” means. Yuka scores products with nutritional quality weighted at 60%, additive content at 30%, and organic status at 10%. Open Food Facts uses Nutri-Score, scoring on a nutrient-only basis. HowGood is primarily a sustainability intelligence company, scoring on eight environmental and social metrics and integrating Nutri-Score separately for nutritional context. Personalised nutrition apps like Zoe score the same product differently for different users, calibrated to individual metabolic response.

Take a full-fat organic yoghurt with no additives. It scores well on Yuka (nutrition plus clean ingredients), variably on Zoe (depends on the user’s metabolic profile), and differently again on HowGood (depends on the sustainability footprint of its supply chain). An agent shortlist filtered for “healthy” produces different results depending on which system it queries, and the consumer has no visibility into which taxonomy shaped the shortlist.

The analogy that keeps pulling me is pharmacy formulary placement. In pharmaceutical distribution, a drug’s presence on a formulary often determines patient access more directly than its clinical profile. The formulary decision happens upstream of the prescription. In agent-mediated food commerce, the taxonomy endorsement happens upstream of the shortlist. A product’s presence in the scoring system of a given platform's queries may matter more to its agent-era visibility than its placement on any retailer’s digital shelf.

3. Platform fragmentation multiplies the legibility target

The optimistic version of this transition assumes interoperability: one proof layer, universal reach. That assumption is not holding up.

Last month, U.S. District Judge Maxine Chesney granted Amazon a preliminary injunction blocking Perplexity’s Comet browser agent from accessing password-protected areas of Amazon, including logged-in Prime experiences. A brand’s presence inside an authenticated Amazon shopping flow, the one with rich personalisation data, is not addressable by agents operating outside Amazon’s perimeter. The emerging protocol standards reinforce the pattern. OpenAI’s Agentic Commerce Protocol and Google’s Agent Payments Protocol (AP2) each require separate integration work, and neither is emerging as a universal standard.

In Southeast Asia, Google and Sea Limited announced a partnership to build an agentic shopping prototype for Shopee, which holds 52% of the region’s e-commerce market, and to pilot agentic payments through AP2 via Sea’s fintech arm Monee. That is yet another platform-specific integration a food brand would need to reach agent-mediated shoppers in a different region.

For a mid-sized food brand trying to be legible to agents, this means the target is not one data standard but several, each with its own integration cost and taxonomy. Machine-legibility is not a single investment. It is one investment per platform that maintains a walled experience layer.

Fragmentation also resolves a structural question I raised earlier: whether the claims-and-verification layer retains independent leverage or gets absorbed by platforms. If every platform maintained the same taxonomy, a single acquisition could internalise the middle layer’s margin. In a fragmented environment, no single acquisition gives a platform full coverage. The middle layer retains leverage because it is the translation infrastructure between incompatible systems. The more fragmented the protocol landscape stays, the more durable the middle layer’s independent pricing power.

Taken together, these three forces mean the legibility economy is not a clean meritocracy where proof equals access. Access depends on proof, position within the eligible set reflects spend, and the definition of proof depends on which taxonomy the agent queries.

The proof economy’s cost floor determines who participates

Even setting aside monetisation, definitional politics, and fragmentation, the basic economics of producing machine-verifiable evidence sort food producers by scale.

Certifications, provenance chain documentation, composition assays, soil health records, nutrient density measurements: these are the attributes that move a product from invisible to eligible in agent-mediated shortlists. Supplying verifiable evidence is the new table stakes for commercial relevance.

The unit economics do not distribute evenly. A soil assay at agronomic resolution has a cost. Spectroscopy-based nutrient analysis at the lot or batch level has a cost. Third-party certification audits also have a cost. Building the data systems that retailer traceability mandates and GFSI-level food safety programs increasingly require its own investment.

The EU’s Ecodesign for Sustainable Products Regulation (ESPR), which introduces Digital Product Passports for priority sectors like textiles and batteries first, signals where food and agricultural products are likely headed next. At scale, the per-unit cost of all this is manageable. At five acres, it may exceed the margin the producer is working with.

The consequence is a sorting mechanism embedded in the proof economy’s structure. Mid-sized producers with the operational capacity to implement sensing infrastructure and the volume to amortise it gain access to agent-mediated shortlists. Artisanal and small-scale producers, the kind of long-tail supply that specialty food brands and farm-to-table operators have built sourcing differentiation around, face a proof layer that is technically accessible but economically out of reach at current cost structures.

Where this thesis might be ahead of itself

If sensing costs follow the trajectory of other AI-adjacent hardware, falling significantly per cycle as compute and miniaturisation improve, the cost floor argument may be temporary. The distributional effects I describe could be a transitional feature of early infrastructure rather than a permanent structural condition.

If platforms consolidate around a single protocol, with GS1’s Digital Product Passport being the most plausible candidate, fragmentation collapses and the middle layer’s pricing power weakens. A unified standard would simplify legibility into a single investment rather than one per platform, which is better for producers but changes the value map I have outlined.

And if agent monetisation evolves toward subscription models rather than advertising, the shortlist may stay closer to consumer intent than the SEO parallel suggests. The search pattern is one possible outcome, and it may not be the dominant one.

The direction of the shift, from persuasion to proof, is clear to me. The speed, the severity of the distributional effects, and whether the cost floor proves durable or temporary are the open questions.

What this means for you

Every food brand needs a legibility audit before agents run one for them

The diagnostic question I posed earlier in this piece, whether an agent would find machine-readable proof or a story on your packaging, is worth turning into an exercise.

Work through it: what structured nutritional attributes does your product have in queryable databases? Which scoring taxonomies (Yuka, HowGood, Nutri-Score) can access those attributes? Which agent platforms can see your product data inside authenticated environments? This is not a five-year planning horizon. The filtering is already happening.

The most defensible infrastructure plays sit in multi-protocol translation

For investors evaluating data infrastructure in this space, the fragmentation argument implies a specific thesis. The most defensible companies are those whose value increases with fragmentation: multi-protocol translation capability, cross-platform data syndication, taxonomy interoperability.

These companies survive consolidation (they become the acquired integration layer) and thrive during fragmentation (they are the only path to multi-platform legibility). This is a different filter from “invest in the agent platforms” or “invest in the sensing layer,” both of which face commoditisation pressure from different directions.

Whether legibility becomes a public utility determines who participates

The cost floor and the definitional politics I have described will not self-correct through market dynamics alone. Three interventions would change the distributional math: cooperative data infrastructure that lets small producers pool sensing and certification costs across shared operations, public scoring standards that prevent private taxonomies from becoming the sole gatekeepers of “healthy” or “sustainable,” and protocol-level interoperability mandates that reduce the per-platform cost of legibility.

These are policy choices, and they need to be made before the architecture hardens. The sector needs to decide whether legibility is a public utility or a private good. That decision will shape whether the proof economy creates a more open food system or reproduces the concentration dynamics of the shelf-space era in a new form.

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Welcome to Issue #142 of Better Bioeconomy, thanks for being here!

Agritech funding in Southeast and South Asia (SEASA) peaked at more than $750 million in 2022, then dropped roughly 70% by 2025 in both deal count and funding volume. Most people read that as a market failing.

But reading the recent report, “The Opportunity for AgriTech Investment in Southeast and South Asia” (published by Beanstalk AgTech and Briter Bridges, commissioned by Omnivore, FMO, IFC, and Rabo Foundation), I kept arriving at a different conclusion. The opportunity metrics haven't moved. What pulled back was a specific capital model that was not built for how value gets created in these markets.

That difference between a market correcting itself and a capital model revealing its own structural limits is what I want to explore. Because what SEASA is teaching us about capital architecture in emerging agricultural markets is relevant beyond the region.

Let’s dig in!

The funding dropped 70%, but the opportunity metrics didn’t move

The report covers the SEASA region: Southeast Asia (Vietnam, Indonesia, Thailand, Philippines, Myanmar, Cambodia) and South Asia (India, Pakistan, Bangladesh, Sri Lanka), drawing on deal-level data, crop-specific value chain analysis, and a mapping of the startup and investor ecosystem.

Agriculture contributes ~15% of GDP and employs 30-42% of the workforce across SEASA. Between 2020-2022, generalist VCs poured capital into the region. When funding collapsed by 2025, the pullback was sharp and broad. But the structural drivers of the opportunity stayed put.

Yield gaps, post-harvest losses, and SME financing shortfalls remain largely unchanged. The report estimates that digitalisation and agritech adoption could unlock more than $90 billion in annual GDP gains in Southeast Asia alone by 2033.

The report makes another observation I can attest to: agritech rarely ranks as a priority sector for venture capital allocation. It sits at the bottom of what the authors call the “investment waterfall,” with capital flowing first to climate tech, fintech, and broader impact sectors. In my experience, even within climate tech across the region, most allocator attention goes to energy and transportation, with agrifood treated as an afterthought despite its outsized impact potential.

So the capital that flooded in during 2020-2022 was not just the wrong structure. For many funds, agritech was never the core conviction. The 70% funding drop was a failure of the capital model on its own terms, not a market failure.

SEASA is a collection of distinct, localised markets, each with its own rules

The report clearly maps the fragmentation of the region. SEASA is not a market. It is a collection of distinct, localised markets, each with its own policy regimes, value chain dynamics, and consumer patterns.

The report draws a foundational distinction between two types of agricultural markets that coexist across the region. Smallholder-led staple value chains, rice, maize, and wheat in Bangladesh, Cambodia, and Nepal, are high volume, low margin, and oriented toward domestic food security. Highly commercialised, tech-adopting chains, rubber, coffee, and palm oil in Thailand, Vietnam, and Indonesia, are export-oriented, compliance-driven, and increasingly venture-legible. Same region, different investment theses.

The fragmentation runs deeper than that divide. Even within a single crop, where value concentrates in the supply chain varies by country. In Vietnamese shrimp farming, profits split roughly evenly between upstream production (51%) and downstream processing (43.5%).

In Philippine coconut production, 74% of the profit pool sits upstream in production and primary processing. The point is not to compare shrimp with coconut. It is that the investment thesis has to be crop-specific and country-specific. Backing a downstream aggregation play without understanding where the profit sits in that specific value chain could lead to misallocation of capital.

Premature regional expansion was one of the most common failure modes. Of the entire SEASA ecosystem, only 12 startups attempted cross-border scaling, with approximately two-thirds failing or pulling back. This matches what I’ve seen working in the region. The pitch deck says “Southeast Asia,” but moving from Indonesia to Thailand could mean rebuilding distribution, regulatory relationships, and tweaking the product itself.

In SEASA, the funding that arrived in the first wave was structured for regional scale. The assumption was that a model proven in Vietnam could be replciated into Indonesia, then the Philippines. The markets disagreed.

Strong local traction, failed regional expansion

That fragmentation created the conditions for a specific and repeatable failure pattern. The vast majority of SEASA startups surveyed operate at negative margins. By 2022-2023, 69% of the $569 million in funding went to startups with demonstrated unit profitability, suggesting investors had already learned to screen for it.

The report identifies what it calls the "Series C Trap." Early-stage companies achieve strong local growth by solving a specific friction point in a single market. Earlier rounds up to Series A can generate real traction. The trap springs later: under pressure to demonstrate the scale that justifies a Series C valuation, companies attempt cross-border expansion into markets with fundamentally different dynamics. Distribution costs can consume 30-40% of revenue in fragmented SEASA markets, and the result of premature expansion is diluted product-market fit and eventual failure.

What the first wave exposed: unit economics matter more than the total addressable market. The region has 71 million farmers, but only ~5% use digital platforms with an average spend of below $50 per year. The addressable market was a fraction of what pitch decks suggested. Direct-to-farmer models made it worse: customer acquisition costs ran 3-5x higher than B2B or intermediary approaches, and even after acquisition, serving smallholders at that price point was economically challenging. Onboarding, support, and logistics costs eroded whatever margin remained.

Over 60% of failures between 2022-2025 cited poorly sequenced scaling as the cause. The companies that survived share a pattern: they dominated a single market before expanding, built local execution teams, and treated distribution as a core competence rather than a fundraising milestone.

The typical Series C timeline assumes that the infrastructure for scaling already exists: reliable distribution, functioning logistics, and available financing for customers. In SEASA, that infrastructure often does not exist. The VC scaling cadence collided with markets that require ecosystem-building before, or at least alongside, company-building. There's a related dynamic I see often: VC pressure makes startups feel they need to ramp faster than their demand requires, leading to CAPEX investments in capacity that sits underutilised. The capital model doesn't just fail at the wrong stage. It can distort operating decisions well before that stage arrives.

Three demand drivers that exist regardless of VC sentiment

Despite everything the first wave got wrong, the structural drivers of the opportunity were never the problem. Reading across the report's value chain analysis, three pillars stand out, each grounded in constraints that technology can address, and each growing independently of venture capital sentiment.

What connects all three is that they are pull markets: the demand exists independently of whether a startup shows up to serve it.

Productivity gaps and the $40 billion in annual losses

Production yields across SEASA remain 2-6x lower than the highest-yielding global producers, and post-harvest losses add $40 billion in annual drag from inadequate cold storage and fragmented logistics. But not all of that gap is the same kind of problem.

Countries with high Total Factor Productivity (TFP) growth, like Vietnam, are modernising: output is rising while the labour index is declining, signalling a sector where labour is becoming more productive. The technology opportunity here is precision agriculture, input efficiency, and automation.

Countries with low TFP growth, like Pakistan, are growing through extensification: output gains are matched by increases in labour and land inputs. The opportunity there is more foundational: basic mechanisation, improved inputs, and knowledge dissemination platforms.

This matters for investors because it means the same sector label (”productivity tech”) describes two completely different investment theses depending on the country.

Premiumization and compliance as a paid market

Beyond yield gains, value is increasingly created through premiumization, particularly for high-value export crops like coffee and palm oil. The rise of mandatory compliance pressures, most notably the EU Deforestation Regulation (EUDR), has turned what was once an optional ESG upgrade into a non-discretionary requirement.

Technology solutions for MRV (Measurement, Reporting, and Verification, the tools that track, measure, and prove environmental claims) and traceability are creating what is effectively a paid market for compliance. B2B SaaS platforms that bundle compliance software with verification services can capture value through mandatory traceability adoption. The scale of the premium can be seen in specialty categories already: coconut sugar commands 1,600-5,000% premiums, and premium seafood 650-20,000% over commodity equivalents.

When a regulation requires compliance, the willingness-to-pay question largely disappears. But the open question is who captures that value. If the tech provider is enabling a premium that accrues to the exporter, the SaaS fee has to be priced against margin the exporter would not otherwise have. That is a strong position, but only if switching costs are high enough to prevent the exporter from building the capability in-house once the compliance workflow is proven.

Climate adaptation is creating “market pull” for non-discretionary tech spending

Drought, salinity, cyclones, and extreme heat impose unavoidable adaptation costs across SEASA agriculture. The report frames this as a “pull” market: climate technologies are shifting from optional to essential expenditure.

What makes this useful for investors is that the climate patterns themselves dictate distinct technology priorities by geography. Drought-resistant genetics and water optimisation (like Alternate Wetting and Drying for rice) map to mainland Southeast Asia and inland South Asia, where water stress is most acute. Salt-tolerant crop varieties target coastal regions facing dual threats of flooding and salinity from sea-level rise. Storm-resilient infrastructure and parametric insurance concentrate along exposed coastlines in the Philippines, Vietnam, and eastern India, where cyclone vulnerability is highest.

Each of these is a different product category, a different customer, and a different go-to-market. The climate thesis in SEASA is not one investment. It is at least four, each geographically constrained.

That said, policy design matters as much as climate exposure. Vietnam’s One Million Hectare rice program has successfully catalysed smart cultivation and traceability pilots at national scale. Pakistan’s biofertilizer startups face headwinds from entrenched chemical subsidy regimes. Same regional challenge, opposite policy environments, very different adoption curves.

The harder question remains adoption velocity: parametric insurance has been “gaining traction” for years, but actual penetration among smallholders remains thin. How fast structural demand converts into revenue depends on distribution infrastructure that, in much of SEASA, does not yet exist. This is the same constraint that doomed direct-to-farmer platforms in the first wave. The opportunity is real. The business model that can access it without building infrastructure from scratch is what separates a viable business from an expensive lesson.

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Three verticals where the economics work

Not all SEASA agritech verticals are waiting for the same kind of capital to come back. What connects the verticals showing signs of life is strong underlying economics. What separates them is the capital structure each one requires.

Aquaculture and marine innovation

Aquaculture contributes $26.9 billion annually to Indonesia’s economy alone and employs millions across Vietnam, India, and Bangladesh. This is the vertical where the gap between potential and current utilisation is widest. Indonesia’s seaweed industry alone could reach $11.8 billion by 2030, yet only 0.8% of suitable hectares are currently utilised.

Feed accounts for up to 57% of total costs for shrimp and 84% for pangasius (a freshwater catfish native to Southeast Asia), so any efficiency gain in feed conversion translates directly to margin. Platforms like Tepbac (Vietnam) and AquaEasy (Singapore) claim feed savings of 20-30% through AI-driven farm management.

The sector is also adapting its business model in response to first-wave lessons. 61% of aquaculture startups now offer bundled solutions combining hardware, software, inputs, and services, with marketplace-plus-SaaS platforms attracting the largest rounds.

Despite high-profile failures in the sector, the demand for aquaculture protein continues to grow, and the production inefficiencies remain massive. But the capital this vertical needs likely looks more like project finance than venture equity: long-horizon, asset-backed, tied to infrastructure buildout.

Inclusive agri-fintech

The region has a $12-15 billion SME financing gap, and the models that are gaining traction have stopped trying to build distribution from scratch. New approaches are shifting from prohibitive “direct-to-farmer” lending toward trade-data underwriting, where transaction histories with established distributors become the basis for credit decisions.

By partnering with existing distribution networks rather than building their own, these platforms can achieve unit profitability through transaction fees and data monetisation. A related growth area is parametric insurance for aquaculture and livestock, which the report identifies as a billion-dollar opportunity, building on the climate adaptation demand outlined above.

The test for whether an emerging market agritech model will work is whether it can reach customers through infrastructure that already exists, or whether it needs to build the infrastructure first. The models gaining traction in SEASA are built on what is already there.

Of the three verticals here, agri-fintech is probably the one most naturally suited to standard venture capital: it runs on existing distribution rails, generates transaction-level data from day one, and can reach unit profitability without building physical infrastructure.

Sustainable feed and biotech

Sustainable inputs like algae and insect protein are attracting investment driven by clear demand from feed mills across the region. In the Philippines, aquaculture biotech ventures are integrating upstream solutions (the biology) with downstream brand partnerships (the market access).

With feed as the dominant cost driver across aquaculture species, alternative protein inputs are being pulled by the sector’s own cost structure. This is demand-led innovation, not supply-pushed technology looking for a market. And the capital structure follows the demand: corporate VCs from feed mills and processors (Thai Union Ventures, CP Group, Wilmar) are the natural funders here, because they are also the customers. This is perhaps the vertical that has the strongest set of acquirers.

Corporate acquisitions at $200-400M are the market revealing what works

If the first wave’s capital model was wrong, what does the right one look like? The exit data is a good place to start, because exit architecture tells you what the market rewards.

Since 2020, corporate acquisitions have accounted for roughly three-quarters of all SEASA agritech exits. Only eight IPOs have been completed across the broader ecosystem. The realistic exit target is $200-400 million, driven primarily by strategic buyers like Wilmar, Thai Union, and CP Group looking to de-risk supply chains and accelerate digital transformation.

This tracks with a pattern I covered in Issue #137 on the Verdant M&A review: thesis-driven corporate buyers are replacing conglomerate logic as the primary acquirers in food and agriculture globally. In SEASA, the same dynamic plays out with regional corporates filling specific platform gaps.

And exit proceeds are rarely recycled into new funds, creating what the report calls a “single-use” dynamic: without successful exits cycling capital back, new money must constantly flow in, compounding liquidity constraints across the ecosystem.

Niche exit pathways are also emerging. In India, SME listing platforms like the Bombay Stock Exchange SME have provided liquidity for smaller ventures with post-issue paid-up capital as low as $3-$4 million.

From my experience in the region, interest in secondary transactions is also picking up as early investors look for liquidity without waiting for a full exit. This is a global trend: as Cyril Ebersweiler, General Partner at SOSV, a global deep tech venture firm, shared in our conversation, secondaries grew from 10% to 28% of exit volume globally between 2020 and 2024, capturing 71% of exit dollars in 2024. If that trend reaches SEASA, it could ease the “single-use” capital constraint that currently starves the ecosystem of recycled capital.

Blended finance is the right architecture, with caveats

On the capital side, the architecture replacing VC primacy is blended finance: equity combined with credit and concessional capital. DFIs like the IFC, FMO, and Rabo Foundation are emerging as critical anchors, acting as cornerstone LPs in most newly launched agrifood funds with a combined $650 million committed to date.

Local financial institutions now participate in over a quarter of corporate-backed agritech deals, blending equity with working capital or ecosystem lending. Corporate VCs are the second-leading investor type after traditional VCs, providing both capital and the market validation that a business solves a real problem for a buyer.

Companies that have revenue profiles supporting debt instruments are increasingly raising capital through non-equity channels. The capital stack is diversifying because it has to. As Oscar Ramos, Managing General Partner at Orbit Ventures, an emerging-markets venture platform, mentioned in our conversation, designing a capital stack that matches the realities of the business is becoming just as important as designing the product itself.

A note of transparency: this report was commissioned by Omnivore, FMO, IFC, and Rabo Foundation, all of whom operate within the blended finance and impact investing model the report advocates. That doesn’t invalidate the analysis, the data is rigorous, and the findings track with what I see in practice. But you should hold the report’s enthusiasm for blended finance with an awareness that its commissioners have a structural interest in that architecture succeeding.

And on that point, while I am all for blended finance, I want to caution that blended finance is not as clean a solution as it sounds on paper. The trade-offs are real, and founders need to understand them.

The first is speed. DFI capital comes with decision timelines that can stretch months longer than commercial rounds. A startup competing for a distribution partnership or reacting to a regulatory window may not have that time.

The second is flexibility. Impact mandates can directly conflict with the pivots that startups need to make to survive. Consider an alternative protein startup backed by concessional capital tied to plant-based or fermentation-derived outcomes. If that company discovers its fastest path to unit economics runs through a partnership with an animal-based protein processor (co-manufacturing, shared cold chain, blended product lines), that pivot may be incompatible with the terms of its funding.

Blended finance is the right structural direction for SEASA. But the cost is flexibility and speed, and in markets where conditions shift fast, those can add up.

What I’m taking away from this

Build for acquisition readiness from the start

In a market where three-quarters of exits are corporate acquisitions in the $200 to $400 million range, the exit strategy is a founding thesis decision, not a Series B conversation.

The diagnostic questions for founders: Which three to five corporates are the most likely acquirers for your specific capability? Are you building something that slots into their workflows, or something that requires them to change how they operate?

And critically: don’t “go regional” until your local ecosystem can sustain the growth. The Series C Trap is a sequencing problem, and the sequencing starts at founding.

Fund architecture must match exit architecture

If the exit ceiling is $200 to $400 million, the fund math dictates everything downstream. A fund sized in that range can underwrite to these exits and generate meaningful returns at reasonable ownership levels.

A $200 million-plus fund requires a fundamentally different portfolio construction to make the math work, perhaps through multi-stage reserves, or a hybrid equity-credit model. The question for LPs: are fund sizes being calibrated to the market's exit architecture, or to LP appetite for larger commitments?

For investors building emerging market theses beyond SEASA

The structural conditions that make standard VC architecture a poor fit for SEASA (fragmented local markets, smallholder dominance, compliance-driven demand, infrastructure gaps that precede software adoption) exist in Sub-Saharan Africa, parts of Latin America, and Central Asia.

The SEASA correction is a dataset on what happens when capital architecture is imported rather than designed locally. The fund structures, check sizes, and exit expectations that emerge over the next two to three years will become templates, both for what to replicate and what to avoid.

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not reflect those of my employer, affiliates, or any organisations I am associated with.

Thanks for being here. For Issue #141 of Better Bioeconomy, I sat down with Steven Finn, Co‑Founder and General Partner at Siddhi Capital.

Siddhi is an investment firm operating across two distinct verticals: consumer packaged goods brands and food technology. What makes the fund structurally interesting is that more than half the team aren’t investment professionals. They’re operators, inherited from a food systems consulting firm co-founded by Steven’s partner Melissa.

In 2022, that firm was folded as a standalone business, and its people were brought into Siddhi’s management company to work directly with the portfolio. The result is a fund that can, as Steven puts it, build your food facility and write you a check.

Steven leads the food tech side of the house. He came to it as an engineer first and an investor second, which shapes how he thinks about B2B businesses: always global in scope, always grounded in commercialisation mechanics. He’s refreshingly outspoken about the mistakes that got the sector into its current mess, and equally clear about where he sees the path out.

In our chat, we spoke about why the food tech investing climate is bad (and why that’s not the whole story), the structural trap of trying to do CPG and deep tech under one roof, how to think about cap tables in a sector still recovering from its own “peak stupid”, and where GLP-1 and AI are creating real opportunity versus just noise.

Let’s jump in!

The investing climate is bad, but drivers for innovation didn’t go away

The food tech investing climate is bad. Steven won’t sugarcoat it. But he draws a line between the sector’s PR problem and the underlying quality of companies being built right now.

The issue is structural to private markets. When a public market sector crashes, it crashes together, a shared bad moment that the market can process, price in, and move on from. Private markets don’t work that way. The companies that raised too much money at wrong valuations during what Steven calls “peak stupid,” roughly 2019-2022, didn’t fail at the same time. They’ve been dropping one by one over the years. That creates a bad news cycle that persists long after the underlying cause has passed.

The consequence: generalist money, which flooded the sector during peak stupid and then got burned, has stayed away. Access to capital has dried up. Valuations have compressed. And the slow drip of high-profile failures makes it look like the whole space is broken, even when companies founded later are doing compelling work on more disciplined capital structures.

“Dumb generalist money went to the wrong places in the first place,” he said. “That’s not because the companies aren’t doing great, amazing things. It’s because they raised the wrong amount of money at the wrong time.”

What he thinks people are missing is that the drivers for food tech didn’t go anywhere. Supply shocks are still coming. Wars, fertiliser disruptions and geopolitical fractures keep reminding the world how fragile food supply chains are, and each new crisis pushes eggs, cocoa, oils, and other categories back into the spotlight.

The difference this time, he argues, is that the biotech and ingredient infrastructure is “many steps closer” to being able to respond than it was during Covid. The tools are better, the playbooks are clearer, and there are more teams building around real price and taste rather than purely around narratives.

Siddhi’s answer is to keep writing checks, but not into companies that require a US$100M generalist-led round in 12 months to survive. Instead, they back businesses that can raise smaller, staged amounts from industry insiders while the market heals and can extend runway without dropping two-thirds of a round into CAPEX on day one.

The bet is that by the time these companies are ready for bigger capital, a couple of visible wins will have done the work of bringing generalist money back in. Not on 2021 terms, but on terms that reflect what the sector has learned.

Don’t try to do ‘tech and brand’ under one roof

Siddhi invests in both pure CPG brands and deep tech ingredient platforms, but Steven is adamant about one line they won’t cross: they do “zero companies that are trying to do both.” The two tracks run separately, collaborate closely, and don’t merge.

That conviction is shaped by scars from the consumer side. After years of getting “persistently and occasionally beaten” in CPG and watching brilliant scientific founders treat the consumer brand as the “easy part,” he has come to see tech and brand as two separate zero-to-one problems.

Putting both zero-to-one journeys under one roof does not double complexity. It turns it into an order-of-magnitude problem. The teams are different, the skill sets are different, and, crucially, the investor universes and valuation logics are different. For a tech platform, the early valuation may be anchored on IP, platform potential and B2B unit economics. But for a consumer brand, valuations are often anchored to revenue multiples and gross margins.

When a deep tech company bolts on a small brand because “the industry is moving too slow to adopt us,” it typically ends up being valued like a consumer business doing a few hundred thousand dollars in sales rather than like an ingredient platform with scalable upside.

“What was your last valuation?” he asks ingredient founders considering a consumer pivot. “Because the second you’re a consumer product, you’re valued as a consumer product, and you’re probably worth two to four times sales.” Go out and sell $100,000 of product in your first year, and you’ve just marked yourself down to $200,000 in enterprise value, regardless of what the underlying science is worth.

The bifurcated model Siddhi runs creates an edge on both sides. The CPG portfolio, growth-stage brands doing roughly $30-150 million in revenue, are big enough to be meaningfully distributed but small enough to move quickly and run ingredient pilots at small quantities. That gives the food tech side a real-world commercialisation channel and live feedback on what problems the CPG market needs solving. One side feeds the other. But only because they stay separate.

A great consumer brand is more defensible than a patent

Most investors in this space instinctively favour the patent. Steven doesn’t. His view is that both a brand and a patent are essentially zero-to-one exercises, rare, hard to build, and not as durable as they appear once achieved.

What undermines a patent in food specifically is that customers don’t care about the method. They care about the outcome. And in food systems, there is almost always more than one way to achieve the same outcome.

Take a cultivated meat bioreactor company, which builds a compelling case: there aren’t enough steel bioreactors in the world to feed people at scale, it’s a real constraint. That argument resonates until the day you receive a pitch on molecular farming, where plants become the bioreactors, and the capital intensity problem largely disappears.

Same consumer goal. Entirely different path. “We’re solving the same problem so many different ways,” Steven said, “that I think patents are great, but businesses are better.” The clearest implication: IP is a starting position, not a finish line.

What this means practically is that Siddhi evaluates defensibility less around IP and more around whether a company has a real business: customers, recurring revenue, and relationships that can’t easily be replicated.

A brand that has earned shelf space, consumer loyalty, and retailer trust is harder to dislodge than a patent that a well-funded competitor can design around by approaching the same problem from a different scientific angle.

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The “financing risk first” mindset to underwrite startups

The phrase “financing risk first” is Steven’s shorthand for how Siddhi underwrites deals now versus four or five years ago. The key question he asks early is: “How many dollars do you need before you don’t need any more dollars?” From there, he works backwards into a multi-year fundraising plan tied to specific value inflection points and milestones that change the way a future investor can underwrite the business.

In the “peak stupid” years, founders could get away with a hand‑wavey “we’ll raise a big Series B from generalists in 12 months” as part of the story. Today, that is an immediate red flag. Siddhi wants to see rounds sized and timed around realistic timelines to tech de-risking and commercial proof.

That includes a path to strong EBITDA, not just the maximum cheque size the market might bear. And it includes practical questions: can this company extend runway if needed, or have they structured the business so that two-thirds of a round goes into irreversible CAPEX on day two, leaving no ability to slow burn or pivot if the next raise takes longer than expected.

This financing‑risk lens also shapes which stage Siddhi is solving for in which vehicle. Their earlier-stage capital is often aimed simply at getting a company to a credible Series A: proof that the tech works, first customers, a sense that there is a real market pull.

The main growth fund, which writes larger checks and leads Series A and B rounds, underwrites an exit case that looks more like private equity than IPO. That means baking in the assumption that the business will need to become highly profitable and will likely be sold on EBITDA multiples, with strategic acquisitions treated as upside rather than the default exit path.

In practice, for a growth-stage entry, they are aiming for a world where, if things go right, their base case looks like a 5-6x return on invested capital, which they then mentally haircut to a 3x to account for the fact that “anything that can go wrong will go wrong.” That math only works if the company is still alive at the exit. Which is why the conversation about unit economics, total capital required to reach cashflow positivity, starts on day one.

A cap table can kill a good company

Steven is almost evangelical about cap table engineering. He has written multi‑part LinkedIn posts breaking down how preference stacks and misaligned valuations quietly kill otherwise good food companies, and those posts are how I first came across his work.

For context, a cap table (short for capitalisation table) records who owns equity in a company and on what terms. In any fundraise or exit, it determines who gets paid first and how much.

His diagnosis of the last cycle is that many companies raised the wrong amount of money at the wrong time, at the wrong price, and then felt compelled to take only “huge swings” to try to justify it. As those swings missed, as most huge swings do, the cap tables that had once signalled ambition turned into anchors.

If a company raised US$100M at a US$300M pre‑money valuation, and now needs to raise at US$5M pre because the world moved on, a naïve approach might be to just stack the new round on top and hope for the best. In reality, that leaves US$100M of liquidation preference ahead of the new investor, which means most realistic exits go almost entirely to the old money and leave the new round with very limited upside.

That kind of structure kills deals: new investors cannot underwrite to a reasonable outcome, teams know they will never see meaningful upside, and everyone is trapped waiting for a fantasy exit that will never come.

Steven’s rule is that the cap table must reflect the moment the company is in and the path it is now on, not the frothiest part of the last cycle when a prior round was raised. If the business model, market, or financing reality has changed, the cap table has to change too. Otherwise, all the baggage of the past surfaces every time a round, extension, or exit comes up.

Getting there means figuring out who the insiders are that still have capital to support the company, whose signatures are required to authorise any restructuring, and who needs to receive something in exchange for cooperation. It’s messy work. But the alternative is a company that keeps getting blocked by its own history, deal after deal, even when the fundamentals are strong.

GLP-1 is the AI of food, for better and worse

When Steven said “GLP-1 is our AI,” he meant it both ways. On one hand, GLP-1 drugs represent a genuine platform shift. The percentage of the population on these drugs is rising fast, and the behavioural changes, smaller portions, reduced appetite for ultra-processed food, and a shift toward protein-dense options are already showing up in purchasing data.

Importantly, the effect radiates beyond the individual user. As households adjust, the ripple is larger than the headline number suggests. A lot of Siddhi’s CPG portfolio, protein-forward, better-for-you brands, are well-positioned. And as consumer purchasing shifts, ingredient adoption on the B2B side will follow faster.

But on the other hand, just as every company in the AI era is suddenly an “AI company,” every food startup now has always been a “GLP-1 companion.” The positioning is often reverse-engineered after the fact. There’s real bubble risk here, and Steven has seen the pattern before.

On AI itself, he understands the productivity case for AI-powered CPG salesforce tools, one human managing an army of agents doing prospect research, initial outreach, and pipeline filtering. What he doesn’t see is the investment case. “I struggle to see the investment case in that software company,” he said. “I don’t see a moat.” These tools are, in his view, “next-generation services businesses” that will live or die on sales execution rather than on proprietary technology.

And the platform risk is real. Because the underlying models are controlled by a few large players, he expects those LLM providers to watch which use cases take off and then “eat the lunch of their wrappers” by adding the most successful functions natively, in the same way Shopify absorbed some of its own app ecosystem into the core product.

That does not mean AI is irrelevant to food tech. Where he sees the genuine case is in tools that remove hardware from the loop in bioprocess development: running virtual bioreactor experiments in silico in seconds instead of in steel over weeks, with outputs reliable enough to drive real decisions.

For a cash-strapped sector, anything that compresses the iteration cycle and reduces the amount of physical experimentation needed changes the shape of budgets and timelines in fermentation, cell culture, and other process-heavy categories. Those tools are harder to commoditise because they are built on the actual physics and biology of the problem, not on a prompt. That is the difference between AI that creates a moat and AI that just borrows one.

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In Issue #140 of Better Bioeconomy, I want to talk about a term that I have been coming across frequently lately: Physical AI.

Tractor companies, laser weeding startups, and drone platforms are all using it. At CES 2025, NVIDIA’s Jensen Huang described Physical AI as “the next frontier of AI,” and the phrase spread from there with the momentum that only a newly mainstream tech label can generate.

Every few years, the vocabulary in this agrifood tech space refreshes. From “precision agriculture” to “smart farming” to “ag robotics” and now “physical AI.” Some of those rebrands tracked real changes in what was happening on the ground, but some were mostly new dressing on a familiar pitch.

So which is this one? The answer, after reading into the underlying technology and watching which companies are doing what: partly both. Some of it is marketing. But underneath the label is a real architectural shift in how robotic intelligence is built and deployed. Recognising that shift helps me understand which developments in the space deserve attention right now.

Let’s dig in!

The previous wave of ag robots shared a structural problem that engineering alone couldn’t fix

The first thing to understand about Physical AI in agriculture is that it comes after a decade of promises that mostly didn’t deliver. “Wave 2” ag robotics, during 2015-2022, was built around a plausible-sounding bet: attach a computer vision model to a robot arm, and it can pick fruit, identify weeds, and scout for disease. Many companies launched on this premise. Several raised significant capital. Most either failed outright or remain stuck searching for commercial scale.

The failures get attributed to various causes in post-mortems: difficult outdoor conditions, high hardware costs, farmer scepticism, pandemic disruption, and poor funding timing. Hardware economics were a real constraint. So was the fundamental difficulty of dexterous manipulation in unstructured outdoor environments, a mechanical challenge that still needs work in applications like harvesting today.

These all played a role. But reading across the category, another constraint shows up repeatedly alongside them: the intelligence itself was often narrow and hard to transfer.

A strawberry-harvesting robot trained in one greenhouse did not necessarily transfer well to a different layout, variety, or growing region. An apple-picking robot optimised for one orchard geometry couldn’t adapt to a new farm configuration without restarting the data collection and model training process. Every new application was, in effect, a cold start.

If a system has to be heavily retrained or reconfigured every time the crop, geography, or workflow changes, its commercial scope narrows quickly. Layer on seasonal data collection constraints (you get one shot per year at harvesting strawberries), hardware costs that haven’t yet benefited from scale, and maintenance complexity in outdoor conditions, and the commercial window becomes much tighter than early narratives suggested.

This is not to say that transferability was the only thing that broke the previous wave. It was that narrow, non-transferable intelligence that appears to have been one of the recurring structural constraints that made all the other problems harder to overcome.

Physical AI stacks three technologies, and the VLA layer is the architectural shift

As mentioned at the start, the term “Physical AI” was popularised by NVIDIA’s Jensen Huang at CES 2025, where it served as the organising concept for NVIDIA’s push into robotics hardware: the Isaac platform, the Jetson edge computing chips, and the model called Cosmos.

Physical AI, as NVIDIA defines it, means AI that doesn’t just process information but perceives the physical world through sensors and acts in it through motors and actuators. The distinction from software AI is the closed loop between perception and physical action: a system that reads the scene and then moves, rather than reading the scene and producing text or a label.

That loop is built from three layers of technology that have been developing in parallel.

1. Foundation model

Foundation models are large AI systems pre-trained on enormous datasets, general enough to be adapted to a wide range of tasks without retraining from scratch. GPT, Gemini, and LLaMA are foundation models for language and multimodal understanding.

The core property is transferability. A foundation model trained on broad data can be fine-tuned on a small amount of task-specific data and perform well, instead of needing a full training run for each new application.

This is the architectural property that reduced the cold start problem in natural language processing around 2020. In robotics, the equivalent shift is underway. The cold start problem is not yet eliminated, but it is being structurally reduced.

2. Vision-Language-Action (VLA) model

A VLA takes three inputs: a camera feed showing what the robot sees, a natural-language instruction describing what to do, and the robot’s current sensor state. It produces one output: the specific physical action to take next, expressed as motor commands, joint angles, or gripper positions.

VLAs extend foundation models into the physical world by adding that action output layer. A robot controlled by a VLA doesn’t require hand-coded rules for every situation. It reads the scene, parses the instruction, and reasons about how to move.

A VLA-controlled robot is like an experienced farmhand who has worked across dozens of different properties and crops and can read a new field after a short briefing, versus one who only ever trained on a single farm and needs months of retraining when anything changes.

The key property is that VLAs generalise across tasks. Physical Intelligence’s π0 model, not an agricultural application but a clear demonstration of what this architecture can do, was trained on data from seven different robot configurations across 68 tasks. The intelligence it encodes can generalise across hardware types and be fine-tuned to new manipulation tasks with far less task-specific data than training from scratch.

3. World foundation model

A big, persistent obstacle in training physical robots is that real-world data is expensive and slow to collect. In agriculture, it is also seasonal: you cannot train a strawberry-picking robot in January.

Cosmos, trained on 20 million hours of real-world video comprising 9,000 trillion tokens, can generate photorealistic synthetic environments for robot training. It is like a flight simulator for farming: instead of waiting for the season to collect real training data, you build the field in software and run thousands of synthetic harvests.

The goal is to compress the gap between simulation and reality enough that robots trained in virtual environments transfer reliably to the field. Danny Bernstein, CEO of The Reservoir, an agrifood robotics investor and startup incubator, described one operational signal I found very interesting: “sim-first development” is allowing teams to “iterate in production, not just in labs, and that changes what’s possible in 2026.”

Companies building on synthetic training environments are not constrained to one training cycle per year, which has historically been one of agriculture’s hardest structural limits on model development speed.

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The question that separates real Physical AI from the rebrand is whether the intelligence can transfer

Before getting into specific companies, it helps to be clear about what Physical AI actually covers in agriculture, because the label is doing a lot of work across three different categories.

The first is manipulation robotics. These are systems that physically interact with crops through picking, laser weeding, or precision intervention at the plant level. This is the category where VLA models are most directly relevant.

The second is autonomous field vehicles. Tractors and spray platforms that navigate autonomously but don’t perform dexterous manipulation. Their AI architecture is closer to autonomous vehicle technology, combining GPS/RTK positioning, obstacle detection, and path planning.

The third is AI-guided precision application. Computer vision systems that identify a target (weeds, diseases, nutrient deficiencies) and trigger a response.

All three carry the Physical AI label. The cold-start argument applies most acutely to manipulation robotics, and commercially deployed VLA-based systems in agriculture are still early.

The test for whether a company is participating in the architectural shift or borrowing the vocabulary is: are they building intelligence that generalises across crops, contexts, and geographies, or building task-specific models that require restarting from scratch for each new application? The former inherits the generalisability that foundation models provide. The latter inherits the cold-start constraints that plagued Wave 2 ag robotics.

By that test, Carbon Robotics’ announcement in February is one of the more instructive examples of agricultural Physical AI to date. The company launched what it calls the Large Plant Model (LPM), which it describes as a foundation model trained on 150 million labelled plant images across crops, weeds, soil types, climates, and growth stages worldwide.

Rather than training a separate model for each new crop context, the LPM provides a base that Carbon says any new field configuration can be added to using two to three reference images, in minutes rather than weeks of data collection. Carbon describes it as “the foundation for Carbon AI, the decision-making brain operating across all of Carbon Robotics products.”

The cold start problem it is claiming to have resolved is specifically at the plant recognition layer: the system generalises across plant types rather than being retrained per crop. That is a meaningful shift from Wave 2 architecture.

The companies passing the architecture test are still a limited subset of the full field now using “Physical AI” in their positioning. Most agricultural robots in commercial deployment today were built on Wave 2 architecture: task-specific models, one crop, one context.

Commercially deployed VLA-based systems in agriculture don’t yet exist at a meaningful scale. Carbon’s LPM is one of the most credible examples of foundation-model thinking applied to an agricultural perception task.

The next proof point will likely come from manipulation robotics, and from harvesting specifically, because that is the category where task-specific architecture struggled and where the transfer properties of foundation models change the economic math most significantly.

I think there is a reasonable case that agriculture may be structurally harder than the domains where foundation models have delivered results so far. Outdoor growing environments are much more variable than warehouses or factory floors. The sim-to-real gap, the difference between what a model learns in simulation and how it performs in an actual field, remains a challenge.

Seasonal data constraints mean that even a well-designed foundation model may need several growing cycles to accumulate enough real-world fine-tuning data to be reliable. And the mechanical challenges of dexterous manipulation in unstructured environments, soft fruit, variable canopy, unpredictable terrain, have not gone away just because the perception layer has improved.

The categories reaching commercial scale show where Physical AI gains traction next

The investment data from 2024 and 2025 tells a useful story about which categories of agricultural robotics have reached commercial traction, and what they have in common.

Weeding and AI-targeted spraying lead the field. Carbon Robotics raised a $70 million Series D in October 2024, with more than 100 LaserWeeders deployed in customers’ hands. Ecorobotix, the Swiss AI-targeted micro-spraying company, raised $150 million across its Series C and D rounds in 2024 and 2025 and is scaling commercial operations globally. Its systems cut herbicide volumes by up to 95% through AI-targeted application rather than blanket coverage. John Deere’s See & Spray system offers the most instructive scale data in the category: by 2025, it was operating across more than five million acres, achieving herbicide reductions of close to 50% on average according to Deere’s own figures.

What these categories share is a favourable task structure. The decision the robot makes is narrow and often binary at the plant level: weed or crop, spray or skip. The outcome is directly measurable in input savings. And the task is repeatable across field conditions without requiring the kind of open-ended dexterity. That combination of narrow decision, measurable outcome, and repeatable task is the recipe that has translated agricultural robotics into verified commercial ROI.

Harvesting has not yet followed the same trajectory, and I think the reason is structural. It combines perception under variable field conditions, delicate manipulation, throughput requirements, seasonal data bottlenecks, and high reliability expectations in a labour-intensive workflow.

Three key takeaways

1. Transfer architecture is the filter that separates the shift from the rebrand

“Physical AI” will shortly be on the deck slide of every ag robot company with a camera and a motor. The terminology is not a useful filter. The question that cuts through is architectural: what happens when you move this system to a new variety in a new geography?

If the answer involves months of data collection and retraining, that is Wave 2 architecture with a new label. If the system can be fine-tuned on a small dataset and deployed in days, that is a fundamentally different scaling proposition with different economics.

2. Weeding’s commercial traction points to where the next category breaks through

Maarten Goossens, Founding Partner at Anterra Capital, identified the critical transition in a recent AgFunder investor survey: AI is moving “from models to applications embedded in workflows.” Agrifood, he argues, is “one of the largest real economy opportunity sets where workflows are still under-digitised, so ROI is unusually tangible.”

That tangibility is what made weeding and precision spraying the first categories to reach commercial scale, and it offers a blueprint for founders working in adjacent areas.

The categories closest to the same kind of breakout share specific structural properties: a narrow, well-defined decision at the plant or field level, an outcome that can be measured directly in input cost or yield terms, and a task that repeats across growing conditions. Harvest timing assessment, disease identification, and targeted nutrient application each have paths to that structure.

3. The data flywheel is the asset that compounds, and the robot is the collection mechanism

Carbon Robotics’ Large Plant Model, trained on 150 million plant images and growing continuously through its deployed fleet, is a useful frame for thinking about where durable competitive advantage sits. Deployed systems collect labelled field data, which improves the model, and better models make future deployments faster and more capable.

This flywheel logic is more applicable to agrifood because agricultural data is hard to get, seasonal in nature, and highly contextual. Companies that own large, clean, well-labelled agricultural datasets hold the fine-tuning substrate that new entrants will struggle to replicate from scratch.

The underlying constraint is real: agricultural data remains sparse, fragmented, and poorly digitised across most of the sector. AI is only as good as what it is trained on, and a model built on incomplete or noisy data compounds those limitations at scale. The durable competitive question for this category is which company owns the data that makes the next generation of models work.

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Welcome to Issue #139 of Better Bioeconomy, weekly insights on how tech is reshaping food and agriculture for better human and planetary health. Thanks for being here!

The Strait of Hormuz blockade, in place since March 2, has removed 43% of global seaborne urea from the market. Urea prices have jumped over 30% since. Northern Hemisphere planting decisions are weeks away.

Against that backdrop, this issue carries three different approaches to reducing dependence on conventional nitrogen supply chains. PlasmaLeap’s A$30 million raise produces nitrogen from air, water, and renewable electricity in modular on-farm units.

Crop Diagnostix, which launched commercially this month, takes a different angle: RNA sequencing of plant leaf samples to tell farmers precisely when they don’t need to apply nitrogen. In field trials that translated to a 38% reduction in nitrogen use alongside an 8% yield increase.

Vietnam’s low-emission rice programme shows what systematic reduction looks like at scale: 354,000 hectares reached two years ahead of target, a 38% reduction in nitrogen application per hectare, a 13.4% rise in farmer income.

The pattern also showed up outside this issue: Birufinery received investment this week for seaweed-microbe biostimulants claiming 30-50% fertiliser reduction in tropical plantation crops, and Rovensa Next launched a dual-microbial inoculant in Brazil targeting nitrogen fixation and phosphorus solubilisation across ten crops.

None of these is a complete answer to a supply crisis. PlasmaLeap is commissioning first-of-a-kind systems. Crop Diagnostix is launching in corn and potato only. Vietnam’s results came with guaranteed offtake that most markets won’t replicate. But the blockade has made the commercial case more convincing and urgent for all of them.

BIO BUZZ

Products, partnerships, and policies

🏭 Latam sugar giant Magdalena is building a 650,000-L precision fermentation facility in Guatemala, targeting high-value molecules

• Founded in 1983 and still family-owned, Magdalena has long monetised sugarcane byproducts through molasses fermentation and bagasse-fired energy. Its new biochem unit goes further: a 650,000-L CMO facility breaking ground in May 2026, starting at 50,000 L with a 2,000-L pilot plant and scaling to full capacity by 2029.

• The competitive case rests on three structural advantages: captive feedstock (sugar), existing bioprocessing infrastructure, and the acquisition of Biorbis, an R&D lab in Portugal previously owned by Amyris. Downstream kit will cover centrifugation, microfiltration, and spray drying, enabling industrial enzymes and dry protein formats.

• In addition to the CMO play, Magdalena has launched Proteva, upgrading spent distillery yeast into functional feed and pet food ingredients via enzymatic hydrolysis. The longer-term ambition is to own proprietary molecules, focused on nature-identical compounds that are hard to scale conventionally.

Source: AgFunder News

Thoughts 🤔

Four decades of sugar cash flows, not venture capital, are funding this facility. That removes the liquidation timeline and growth mandate that push most fermentation startups toward premature scale. The feedstock is already integrated into core operations, so the marginal cost of fermentation inputs looks structurally different from a standalone build.

The CMO-first sequencing adds to this discipline. Contract manufacturing revenue from clients like Coca-Cola and Bacardi validates the process stack before Magdalena commits capital to proprietary molecule development. The Biorbis acquisition is worth noting here: Amyris’s Portugal R&D lab, picked up during bankruptcy in 2023, likely gives Magdalena strain development capability for that longer-term play. Amyris failed partly because it tried to own strain IP, manufacturing, and consumer brands simultaneously without the cash flows to sustain all three. Magdalena is taking the science without the overhead.

I think what determines whether the proprietary pipeline moves from ambition to funded R&D is how CMO margins hold up. If contract manufacturing stays profitable long enough to self-fund the next phase, the sequencing makes sense. If margins compress as more fermentation capacity comes online, Magdalena faces the same capital problem it was designed to avoid.

🍫 Puratos to launch the world’s first cell-based chocolate for commercial use by end of 2026

• Belgian confectioner Puratos, which invested in California Cultured through its VC arm Sparkalis, will now bring a cell-based cocoa product to its US customer base by the end of the year.

• Puratos frames cultured cocoa as a “climate-independent and sustainable complement” to conventional farming, citing more consistent quality and supply. It is drawing on its flavour development and sensory science expertise to ensure the ingredient meets food manufacturer expectations.

• For chocolate makers, the appeal is a cocoa ingredient free from supply volatility. The commercial launch moves cultured cocoa from scientific proof to a dependable ingredient that manufacturers can plan around.

Source: Green Queen

Thoughts 🤔

Two major chocolate incumbents anchoring commercial products around the same startup, before FDA GRAS clearance is even secured, is interesting. Puratos is both investor via Sparkalis and first commercial channel for the US market. Meiji, Japan’s largest chocolate company, signed a 10-year supply agreement targeting both the US and Japanese markets. Together, that is a multi-anchor launch strategy that distributes commercial proof across geographies and buyer types before the product is fully approved.

That structure matters for plant cell culture broadly. The technology has been validated for niche cosmetic and supplement ingredients, but a high-volume food commodity like cocoa is a harder test. Flavour complexity, performance specs across bakery and confectionery, and procurement scrutiny from professional food manufacturers all set a higher bar.

If both launches perform on taste and batch consistency, California Cultured becomes the one of clearest proof-of-concept for plant cell culture moving from niche botanicals into commodity food ingredients. If either struggles at scale, the window narrows considerably, and the sector’s broader ambitions take longer to prove out.

🔁 California Cultured completes first commercial-scale run of plant cell-cultured cocoa using $3k reusable plastic bioreactors

• Plant cell culture has historically relied on expensive stainless steel tanks. California Cultured’s proprietary rigid plastic bioreactors run at 2,000-L, can be reused thousands of times and cost ~$3k each. A comparable stainless steel tank could cost $500k to $1M.

• Automated control software lets large numbers of reactors run with minimal labour, compressing both capital and operating costs. The scale-out model deploys many inexpensive modular units in retrofitted light industrial space, avoiding the centralised mega-plant economics that have made biomanufacturing difficult.

• The first product, a cultured cocoa powder with zero lead and cadmium, is positioned as a flavanol-boosting health ingredient rather than a direct cocoa replacement.

Source: AgFunder News

Thoughts 🤔

Most biomanufacturing scales by building fewer, larger, more expensive units. California Cultured runs in the opposite direction: many small, cheap reactors in retrofitted light industrial space, with automated control software compressing the labour cost that usually scales with unit count. That is a scale-out model, and it appears in other technology cycles at the point where centralised infrastructure proves too capital-intensive to deploy quickly enough.

The CAPEX compression matters beyond cocoa. Stainless steel infrastructure costs have kept commodity food applications using plant cell culture structurally out of reach. If $3k reusable reactors hold at 2,000L and above, the cost game for plant cell culture across a wider range of crop inputs changes significantly.

But whether the architecture generalises is the open question. Reactors optimised for a single cocoa cell line are a specific case. Different plant species, growth parameters, and contamination profiles may each limit transferability. If those constraints are manageable, California Cultured may have built a manufacturing template as much as a product.

🛒 Nestlé launches Snack Vibes in Germany using Planet A Foods’ cocoa-free chocolate alternative

• Snack Vibes goes on sale next month under Nestlé’s Choco Crossies brand in Germany, targeting Gen Z in three flavours: classic, hazelnut, and salted popcorn caramel. Each 100g pack retails at €2.79 and is made with Planet A Foods’ ChoViva instead of conventional chocolate.

• ChoViva is produced by fermenting and roasting sunflower and grape seeds to replicate cocoa’s aroma, flavour, and texture, combined with plant-based fats and sugar. It functions as a 1:1 cocoa replacement in vegan, dark, milk, and white chocolate formats.

• Planet A Foods has expanded its Pilsen production facility from 2,000 to 15,000 tonnes annually, and has entered into a commercial partnership with Barry Callebaut. ChoViva is already in over 120 products across 10 countries and more than 100,000 stores globally, with partners including Lindt, Aldi, Lidl, Rewe, and Kaufland.

Source: Green Queen

🐶 Magic Valley launches Australia’s first cultivated meat for dogs

• Training Bites blend cultivated pork with oat flour, apples, sweet potatoes, and brewer’s yeast. Sold in limited drops at A$14.95 per 50g pack, they are the first cultivated meat product available for pets in Australia and Magic Valley’s first commercial proof point for its broader pork platform.

• Pet food regulation in Australia sits under voluntary industry standards rather than government approval, giving the company a faster path to market than human cultivated meat requires. Magic Valley is using Rogue Pet to build real operating capability across production, fulfilment, and repeat purchase.

• The first drop selling out in a week gives Magic Valley something rare in cultivated meat: real customer demand and early revenue. Future drops, expanded market reach, and B2B supply to other pet food brands are on the roadmap.

Source: Green Queen

🌾 Vietnam has nearly doubled its low‑emission rice target two years early by reducing adoption risk

• The programme set out to cover 180,000 hectares of low-emission rice between 2024 and 2025. By the end of 2025, it had reached 354,000. The acceleration largely came from a single structural change: guaranteed offtake for every tonne produced, removing the market risk that typically stalls smallholder adoption.

• Participating farmers adopted mechanised seeding and improved water management, cutting emissions by 3-4 tonnes of CO₂e per hectare against conventional growing. Average farmer income rose 13.4%. Vietnam also piloted its Measurement, Reporting and Verification (MRV) process across 11 model areas, with both staff and farmers able to run it independently.

• The government plans to add 800,000 more hectares before 2030. Over 5,000 hectares are already certified under a "green rice" label, positioning the crop for market differentiation and climate-aligned trade premiums.

Source: AgTechNavigator

Thoughts 🤔

Smallholder adoption of known-good farming practices almost always stalls at the same point: who absorbs the market risk when the practice works but the price doesn’t.

What Vietnam assembled was a risk transfer architecture rather than a technology programme. Guaranteed offtake removed farmer downside. World Bank carbon payments added a revenue stream not contingent on commodity prices. A green export premium, with certified rice reaching $820 per tonne against $400-450 for conventional Vietnamese fragrant rice, layered a third incentive on top. The farming practices were already well-documented. The bottleneck was never agronomic.

That distinction is important if we want to replicate this across regions. The constraint being solved here is an institutional one. Other rice-growing countries in Southeast Asia face the same adoption stall on similar known practices. Can the multilateral financing and offtake commitments that made Vietnam’s architecture work can be assembled elsewhere without compressing the premium?

🌽 Crop Diagnostix uses RNA sequencing to flag crop disease up to four weeks early

• The California-based startup borrowed a diagnostic approach from human medicine and applied it to crops. It reads which genes are active in plant tissue to detect nutrient deficiency, disease pressure, drought, and water stress before any visual sign appears. By the time symptoms show, the damage is already done.

• Growers send weekly leaf-punch samples in vials and receive results within 48 hours across four indexes: yield response, nutrient status, pathogen stress, and water stress, trained on thousands of real-world RNA samples from corn and potato fields. In field trials, the system detected disease four weeks before visible symptoms.

• Pilots in corn and potato showed an 8% yield increase and 23% reduction in inputs, including a 38% cut in nitrogen, translating to a claimed $720/acre net profit advantage. At $500-700 per field per season, the company is launching commercially in 2026 through agronomy partners including CHS and Wilbur-Ellis.

Source: AgFunder News

Thoughts 🤔

Current crop agronomy is typically organised around visible symptoms. You scout, you see something wrong, you respond. RNA diagnostics flip that sequencing: reading gene expression before any damage appears means the decision window shifts from damage control to prevention.

The four-week lead time is what makes this practically meaningful. Most fungicide and nitrogen timing decisions are already constrained by application windows and crop growth stages. A four-week signal opens up interventions that simply aren’t available when diagnosis happens at symptom onset.

The harder question, I think, is behavioural. Pre-symptomatic data asks growers and agronomists to act on an invisible signal. That’s a different decision-making posture, and the distribution channel here (retailer-affiliated agronomists at CHS and Wilbur-Ellis) inherits grower trust but still has to translate an RNA report into a management change.

If the platform performs consistently beyond the corn and potato pilots, the adoption constraint is likely less about the science and more about whether agronomists are trained and incentivised to use it that way.

BIO BUCKS

Funding, M&As, and grants

🍌 Tropic raised $105M Series C to scale gene-edited banana varieties and deploy TR4-resistant Cavendish from 2027

• The UK-based company has regulatory approval for non-browning and extended shelf-life bananas in five markets. The non-browning variety knocks out the oxidation enzyme, unlocking cut fruit applications. The shelf-life product suppresses ethylene production, adding 10+ days to supply chain windows and cutting cold transport costs.

• TR4 resistance is built on Tropic’s patented Gene Editing Induced Gene Silencing (GEiGS) platform, which edits non-coding genes. Instead of searching through 30,000+ candidate genes for a knockout target, GEiGS redirects the banana’s own RNAi machinery to attack a specific gene inside the fusarium fungus. The approach is tissue-specific, avoids GMO classification, and doesn’t require a full gene knockout.

• TR4 threatens a $25bn industry across Southeast Asia, Africa, and Latin America. Tropic is establishing a mother plantation ahead of commercial deployment from 2027, with capital also funding Black Sigatoka resistance, rice, and new crops. GEiGS is already licensed to Corteva for corn and soybean, British Sugar for sugar beet, and Genus for livestock disease resistance, pointing to platform value well beyond bananas.

Investors: Forbion Bioeconomy Fund, Corteva, IQ Capital, Just Climate, ABN Amro, Invest International, Temasek, and more.

Source: AgFunder News

Thoughts 🤔

The banana supply chain cannot switch away from Cavendish at the pace TR4 is spreading. Variety standards, handling protocols, packaging, and retail contracts are all tuned to a single cultivar, and switching is not realistic even under an existential disease threat. That structural lock-in is what makes TR4 resistance a sale into a captive market. Whoever can fix Cavendish in situ is filling a gap with no substitute.

The oversubscribed round in a compressed funding environment makes more sense in that context, though the cap table suggests more than one thesis at work. It spans a commodity sugar trader (Sucden), development finance institutions (Invest International, ABN Amro), a climate fund (Just Climate), and a strategic ag company (Corteva), capital types that rarely share a syndicate. That breadth points to food security, supply chain resilience, and platform licensing all being priced in simultaneously.

GEiGS is also being deployed well beyond bananas. The platform is already licensed to Corteva for corn and soy, British Sugar for sugar beet, Genus for livestock genetics, and Syngenta Vegetable Seeds, four distinct applications across plant and animal species, before the banana product has reached commercial scale. The platform is accumulating proof of concept across a wider crop base than any banana franchise alone could justify.

But what determines whether GEiGS becomes primarily a licensing platform or a crop company with a licensing arm is whether the banana deployments generate the field-scale performance data that licensees in higher-volume crops need to double down on their commitments.

⚡ PlasmaLeap raised A$30M Series A to deploy zero-emissions, on-farm nitrogen fertiliser production from air, water, and renewable electricity

• The University of Sydney spinout uses a patented plasma reactor to convert air, water, and renewable electricity into ammonia and nitric acid with no fossil fuel inputs. Its modular systems are designed to slot into existing fertiliser supply chains and can be deployed directly on farms or at local hubs.

• Conventional nitrogen production relies on Haber-Bosch and long supply chains. Nitrogen fertiliser accounts for ~2.5% of global CO2e. In parts of sub-Saharan Africa, retail prices reach nearly double the world free-on-board price because of importation, logistics, and financing costs. Decentralised production addresses both problems at once.

• Capital will fund first-of-a-kind hubs in New South Wales and Tasmania. The company expects carbon credits from its decarbonisation impact, with the platform producing synthetic hydrocarbons from biogas or syngas in the longer term.

Investors: Gates Foundation, Investible, Yara Growth Ventures, Twynam, GrainCorp Ventures, and more.

Source: PR Newswire

Thoughts 🤔

Nitrogen fertiliser in parts of sub-Saharan Africa retails at nearly double the world free-on-board price. That gap is not a production problem, it is logistics, importation financing, and supply chain intermediation. Decentralized plasma production does not need to beat Haber-Bosch on synthesis cost to win in those markets. It only needs to undercut the landed cost of imported product, which is a lower bar than the green ammonia narrative typically frames it.

That distinction could reshape the commercialization sequence. In markets where nitrogen deficit directly constrains yields, and where the premium over production cost is absorbed entirely by the supply chain rather than growers, proximity to the farm is itself the value proposition. The technology does not need carbon credit revenue or a green premium to be viable.

The Gates Foundation anchoring this round alongside Yara and GrainCorp suggests the investor syndicate is pricing in both development market deployment and existing agricultural supply chain integration simultaneously. Those are different go-to-market paths with different procurement rails, timelines, and success conditions.

🥛 Verley raised €32M Series A to scale its precision-fermented whey proteins and launch in the US by year-end

• The French startup’s near-term commercial focus is on protein shots, where its purified beta-lactoglobulin delivers high protein concentration while keeping clarity, solubility, and stability intact. First products featuring FermWhey are expected to hit the US market by the end of 2026.

• Verley is operating as a B2B ingredient supplier, targeting food manufacturers and brands that can apply their own formulation expertise and market infrastructure. To scale, it is using a hybrid model combining its own pilot facility with industrial manufacturing partners in Europe and North America, before transitioning to large-scale facilities capable of multi-thousand-tonne annual volumes.

• Following its US launch, the company is advancing regulatory pathways in Europe and the Middle East. The oversubscribed round was won on execution: FDA clearance, validated industrial performance, a growing IP portfolio, and commercial demand that already exceeds current production capacity.

Investors: Alven, Blast, Bpifrance, Sofinnova, Sparkfood, Captech, and Founders Future.

Source: Green Queen

🍼 Guoke Xinglian raised $14.6M Series A+ to scale up precision-fermented human lactoferrin with human-identical glycosylation

• Lactoferrin is the most abundant immune glycoprotein in breast milk, revered for gut health and iron transport, but present in cow’s milk at concentrations 10x lower than in human milk. Beijing’s Guoke Xinglian uses precision fermentation to produce a bioidentical version, more effectively absorbed and gentler than its bovine counterpart.

• The key challenge is glycosylation, attaching sugar molecules to the right positions on the protein, which affects its folding, stability, antigenicity, and resistance to breakdown. The company claims to be the only firm to express human milk glycoproteins via food-grade yeast, using a Kluyveromyces martensii chassis with glycosylation editing.

• Human lactoferrin has entered trial production, with Guoke Xinglian targeting both domestic and overseas B2B supply to infant formula, women’s wellness, health supplement, and functional nutrition brands. The fresh capital will fund AI-driven platform scale-up and global market expansion.

Investors: Shanghai Zhuiguang Julian, Lenovo Capital, Changjin Holdings

Source: Green Queen

🎯 AgZen raised $10M Series B to scale real-time spray monitoring that cuts chemical inputs by up to 50% without yield loss

• The MIT spinout’s RealCoverage system bolts onto any sprayer and uses high-speed cameras to track droplet coverage across the leaf at speeds up to 18mph, detecting droplets as small as 150 microns. It shifts spray management from gallons-per-acre rules to micro-ounces per square millimetre of leaf surface.

• The AI layer processes live coverage data against variables including nozzle type, pressure, boom height, canopy structure, and wind speed, then issues specific real-time adjustments to the operator. A second product, EnhanceCoverage, due commercially in 2027, wraps droplets in adjuvants at the nozzle rather than in the tank, enabling further input reductions.

• The system covered one million acres in 2025 and has commitments for over two million acres across the US, Australia, and Argentina in 2026. The company also announced a strategic partnership and investment from Syngenta Group Ventures, signalling that agchem sees real-time droplet intelligence as infrastructure.

Investors: DCVC Bio, Material Impact, Astanor, and Syngenta Group Ventures.

Source: AgFunder News

Thoughts 🤔

Spray management in commercial agriculture has been governed by gallons per acre for decades. RealCoverage shifts the unit to micro-ounces per square millimetre of leaf surface, and that difference matters for more than farm efficiency.

When coverage is measurable, what growers are buying changes. Volume procurement becomes performance procurement. That creates conditions for premium pricing on high-efficacy formulations. The competitive axis shifts from price per litre to ROI per leaf.

The agchem response to this is visible in the cap table. Syngenta sees RealCoverage as infrastructure for how crop protection products are “tested, sold, and eventually formulated.” What that means in practice is a product development dataset that does not otherwise exist: 150-micron droplet coverage mapped against canopy structure, product, and outcome across millions of acres. Corteva also signed a partnership in October 2025. Two competing majors on the same platform is a strong infrastructure signal.

🧫 baCta raised €7M seed to produce astaxanthin via AI-optimised yeast fermentation for cosmetics and nutraceutical markets

• Astaxanthin is a crimson antioxidant used in dietary supplements, cosmetics, and animal feed, but today’s supply is mainly split between petrochemical synthesis and algae cultivation. The Paris-based startup uses generative AI and liquid-handling robotics to rapidly engineer yeast strains that produce astaxanthin in fermentation tanks, iterating continuously on yield and efficiency.

• baCta claims that yeast reaches over 100g/L biomass density in a bioreactor, compared to under 5g/L for algae in photobioreactors. Combined with a proprietary downstream process that avoids supercritical CO2 extraction, baCta’s cost target is in line with synthetic producers. Its astaxanthin is also claimed to be in the free, non-esterified form, making it more bioavailable than the algae version.

• The company targets cosmetics and nutraceuticals, positioning astaxanthin as an underexploited longevity ingredient. Fresh capital will fund scale-up validation and platform expansion to additional high-value ingredients. Regulatory filings are planned through GRAS in the US and the novel food pathway in the EU.

Investors: LocalGlobe, Daphni, and OVNI Capital

Source: AgFunder News

🌱 Amatera raised €6M to accelerate climate-smart crop breeding by screening at the cell culture stage

• Conventional breeding of perennial crops like coffee or wine grapes can take over 20 years and cost millions. Amatera induces spontaneous genetic variation at the cell culture stage using physical and chemical approaches, generating large libraries of non-GMO cell lines that can be sequenced and screened before any plant is grown.

• Standard practice regenerates all cells into plants before genotyping. Amatera inverts this: it isolates individual cell lines, sequences them in culture, and only regenerates the promising candidates into whole plants. That removes the screening bottleneck and cuts time and cost significantly.

• For perennials, the company develops varieties in-house and licenses them. For annual row and vegetable crops, it offers the platform directly to seed companies. Current candidates in nursery trials include a Robustica coffee combining Robusta disease resilience with Arabica taste, a caffeine-free Arabica, and wine grape varieties resistant to downy mildew and black rot.

Investors: Demea Sustainable Investment, Oyster Bay, PINC, Mudcake, Exceptional Ventures

Source: AgFunder News

🧬 Bindbridge raised $3.8M to design molecular glue herbicides that turn weeds’ own protein recycling machinery against them

• The UK-based startup uses molecular glues, which are single small molecules that hijack a cell’s protein degradation system, forcing weeds to destroy their own essential proteins. Unlike PROTACs (Proteolysis-Targeting Chimeras), which are large two-part molecules that are hard to optimise, molecular glues are closer in scale to conventional herbicides and easier to formulate for field conditions.

• The company’s BRIDGE platform uses AI-driven structural modelling to discover and design these molecules, predicting which compounds can bring two target proteins together to trigger degradation. The platform also filters for agronomic properties like molecular size, charge, and hydrophobicity, ensuring designs translate to the field.

• The funding will support co-development partnerships with ag chem companies and the first round of lab testing. Bindbridge’s initial focus is a broad-spectrum glyphosate replacement, with a longer runway into insecticides, fungicides, and sprayable plant traits for drought tolerance and nutrient use efficiency.

Investors: Nucleus Capital, Speedinvest

Source: AgFunder News

Thoughts 🤔

The new herbicide mode of action pipeline is sparse. Bayer’s Icafolin, announced in mid-2025 as the first new herbicide mode of action in over 30 years, won’t launch commercially until 2028 at the earliest. That context matters for Bindbridge because, from my understanding, induced protein degradation would be mechanistically distinct from what is being used commercially, not enzyme inhibition, not membrane disruption, but forcing target proteins to self-destruct via the cell’s own recycling machinery.

The big question is whether the BRIDGE platform can deliver it. Rational molecular glue design has advanced significantly in pharma, with multiple clinical-stage programs and dedicated computational platforms. But that progress is concentrated around well-characterised human E3 ligases with decades of structural data behind them. Plant protein targets don’t yet have that foundation. Whether AI-driven structural modelling can bridge that gap for agricultural biology, where the structural data is thinner, is the assumption the thesis rests on.

But that assumption will be tested relatively quickly. The first co-development partnerships and lab validation data will be the earliest signal either way.

🤖 Living Models raised $7M to build AI foundation models for plant genomics and compress the seed development cycle

• The French startup applies the transformer architecture that powers large language models to plant DNA sequences, treating nucleotides as a language instead of relying on computer vision or phenotype-based analysis. Its BOTANIC series spans models from 100M to 1B parameters trained on 43 phylogenetically diverse plant species, with open-weight models available on Hugging Face.

• Conventional trait discovery requires growing plants and working backwards from phenotypes. In-silico DNA experiments allow researchers to identify stress tolerance and yield stability traits before a plant is grown, targeting a development cycle that currently takes up to 8 years.

• Fresh capital will fund model and platform development. CEO Cyril Véran has framed the plant genomics focus as a deliberate starting point, indicating that BOTANIC is a beachhead for a broader life sciences foundation model strategy.

Investors: Asterion Ventures, The Galion Project, Kima Ventures, STATION F, University of California Berkeley, and more.

Source: iGrow News

🍫 Cellva Ingredients raised $3.8M pre-Series A to scale its cocoa-free chocolate ingredient made from coffee production waste

• The Brazilian startup extracts bioactive compounds from two coffee by-products (parchment and silver skin), microencapsulates them for stability, and supplies the result as a drop-in ingredient replacing up to 70% of cocoa in bakery, confectionery, beverage, and nutrition applications.

• Instead of sourcing virgin agricultural inputs, the startup partners directly with coffee producers in Bahia’s regulated growing regions, building full traceability from farm to finished ingredient. The company’s ingredient, CoffeeCoa, carries a naturally sweet profile and is rich in antioxidants and fibre.

• From gram-scale batches in 2024, the company projects processing around 2,000 tonnes of raw material this year. It is already supplying industrial bakery manufacturers and chocolate processors in Brazil, and is advancing commercial discussions with clients in Europe, Asia, and the US.

Investors: DigiBoard, Air Capital, Rubens Pereira

Source: Green Queen

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Thanks for being here. In Issue #138 of Better Bioeconomy, I want to share something that has shifted in how I think about failure in agrifood.

For a long time, my working theory when a technology stalled was some version of: wrong market timing, wrong team, wrong capital structure. They were usually a company-level explanation. And often, those explanations are right.

But I kept noticing the same failure pattern across companies with different technologies, different founders, different geographies, and even different capital structures. Company-specific problems explain individual failures. They do not explain why the pattern repeats so consistently across companies that share almost nothing except the system they entered.

The Food and Agriculture Organisation (FAO)’s ‘Transforming food and agriculture through a systems approach’ report gave me the language for what I was noticing. The failure was not always a company-level problem. It was a system-level one: technologies trying to enter systems that were not designed to receive them.

Agrifood systems are not just supply chains

Before the interesting part, some grounding on what we are talking about.

When FAO uses the phrase “agrifood system,” it means something bigger than the farm-to-fork supply chain most people picture. It captures the full journey of food from production through processing, distribution, retail, and consumption, including all the waste that comes out the other end.

But it also includes the people, institutions, incentives, and policies that govern how food moves through that chain, and the relationships between the food system and everything else it touches: health systems, environmental systems, energy systems, water systems, and economic systems.

This interconnectedness is the central fact that makes food system problems so persistent.

Interventions in one part propagate through the system’s connections to every other part, often in ways that were not anticipated. Subsidise fertiliser to boost yields, and you can inadvertently degrade the waterways downstream that farmers depend on. Design food aid to address acute hunger, and you can simultaneously undermine the local markets that would have provided more durable food security. These outcomes do not require bad intentions. They emerge from the structure of the system itself.

This is also why the same intervention can succeed in one context and fail in another with almost identical surface conditions. The difference is rarely the technology. It is which part of the system the intervention enters, and what the downstream effects of that entry are. Most post-mortems on failed agrifood technologies do not ask this question.

Food governance was built to optimise within sectors, not across them

Fragmented food policy is not a coordination failure that could be fixed with better communication between ministries. It is the output of how food system governance was built.

Agricultural ministries optimise for yields and farm incomes. Nutrition departments optimise for dietary outcomes. Environmental regulators optimise for emissions and biodiversity. Trade departments optimise for export earnings.

Each of these actors is doing what their mandate requires, subject to budget cycles, performance metrics, and political accountability structures that reward progress on their specific objective. But they are not rewarded for thinking about what happens when all of these optimisation functions run simultaneously on the same underlying system.

A recent paper in Frontiers in Sustainable Food Systems identifies four overlapping governance challenges that explain why this pattern is so durable. One of them is what the authors call cross-temporal mismatch: the daily demands of keeping food supply moving pull institutions toward short-term decisions, while the structural changes needed to make food systems resilient play out over decades. The actors most responsible for managing the system’s immediate functioning are structurally the least positioned to redesign it.

Compound that with the difficulty of coordinating across distant value chain nodes, the absence of solutions that satisfy stakeholders with compatible priorities, and the complexity of integrating knowledge across communities that rarely talk to each other, and fragmented governance looks less like a political failure than an architectural one.

The result is a consistent pattern of unintended consequences. Productivity programs that increase yields while degrading the soils and water systems that underpin long-term productivity. Nutrition initiatives that ignore the food environments, retailer incentives, and processing economics that determine what people actually eat. Environmental policies that reduce emissions in one part of the system by pushing costs onto smallholder farmers in another.

FAO’s own policy analysis makes the distinction precise. The majority of food policies it surveyed acknowledged that cross-sector involvement was necessary to implement them successfully. Very few had built any institutional structure to carry that involvement out. The acknowledgement and the architecture are two different things, and the gap between them is where unintended consequences accumulate.

I see this dynamic in agrifood startups. A company might have a genuine technology: a biological input that demonstrably improves soil carbon, a digital tool that measurably reduces water use, a novel protein that cuts the emissions intensity of a diet. The science works, and the pilot results are real. But still, the technology stalls somewhere between proof of concept and at-scale adoption because the surrounding system was not designed to absorb it.

Rob Ward’s “Minimum Viable Ecosystem” concept put a useful framing on what I was observing in a guest piece for AgFunder News. He distinguishes between “challengers,” startups that compete against existing systems in isolation, and “disruptors,” who reconfigure the value chain so that all participants benefit from the change. Most agrifood startups launch as challengers and wonder why the system pushes back. The surrounding value chain has no reason to accommodate them and economic reasons to resist.

Most agrifood due diligence asks whether customers will buy the product. But perhaps the more predictive question is whether the value chain surrounding that customer has any incentive to accommodate the technology/product. A challenger can pass every customer discovery test and still stall, because the distributors, retailers, or institutional buyers adjacent to that customer have economic reasons to resist. The failure mode is ecosystem mismatch.

The system rewards the actors and decisions that siloed mandates reward. Technologies that require the system to behave differently face headwinds that often have nothing to do with their technical merit. When one of those technologies eventually stalls, the post-mortem focuses on the company: the capital strategy, the go-to-market, the founding team. But we should also ask if the system was ever designed to receive it.

Coordination architecture determines which technologies get to scale

Rather than focusing on individual technologies, actors, or even sectors, the FAO report focuses on relationships. It identifies ten key relationships within agrifood systems, from production-consumption dynamics to the institutional structures that shape decision-making power, and argues that these relationships are where the real leverage sits. A change at the right relationship node can cascade across the system in ways that a targeted point intervention cannot.

The report then proposes six elements it considers necessary for food system transformation: systems thinking, systems knowledge, systems governance, systems doing, systems investment, and systems learning. All six elements are about how the system is organised: how it generates and shares knowledge, how it coordinates across sectoral mandates, how it designs and funds interventions, and how it adapts when outcomes diverge from plans.

Some of the examples the report draws on illustrate what this looks like in practice. New York City’s public procurement reform simultaneously shifted nutrition outcomes, reduced the climate footprint of the city’s food purchasing, improved equity in food access, and created new market signals for suppliers across a complex supply chain.

Ethiopia developed an integrated national food systems vision that brought together nutrition, climate resilience, food safety, and farmer livelihoods into a single framework, then used it as the organising logic for investment decisions.

Indonesia built economic models to explicitly map the trade-offs between food security, biodiversity, and economic development, creating the knowledge infrastructure needed for cross-system decisions rather than single-sector ones.

A study in Philosophical Transactions of the Royal Society B, led by FAO researchers drawing on food system implementations across Morocco, Costa Rica, Rwanda, and the Pacific Islands, found the same sequencing in each case. Transformation required two things working in tandem: formal governance structures like coordinating bodies and revised policy frameworks, and something harder to fund, the shifts in relationships, trust, and institutional thinking that allow different mandates to align. Neither was sufficient without the other. And in the case examined, the technologies and investment decisions came after that combination existed, not before.

Each created a mechanism that made the system’s trade-offs visible across sectors before decisions were made, and positioned one actor to coordinate above the siloed mandates rather than within them. That sequencing matters more than any of the specific interventions that followed. The technology and investment decisions in each case came after that coordinating mechanism existed. Most agrifood innovation runs the sequence in reverse: the technology arrives first, and waits for the institutional conditions to catch up.

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The forces that built the broken architecture are the same ones that protect it

The system is not failing to change because people lack good ideas about what needs to change. It is failing to change because the same structural features that produced the broken architecture, short political time horizons, fragmented authority, and uncertainty about what will work, are also the features that make redesigning it so difficult. Three overlapping forces explain the bind.

1. Time

Building coordination across institutions, ministries, and sectors takes years. Political cycles, by design, reward visible progress on short timescales, which means the interventions most likely to produce durable food system change are the ones that take the longest to show results.

I see the same mismatch runs through capital markets. Meaningful agricultural innovation may take 10-15 years to mature, against a 7-10 year (sometimes even shorter) VC fund horizon. A fund operating on that clock will rationally favour technologies that can show commercial traction within that window, which means the technologies most likely to produce systems-level change are systematically deprioritised. The capital structure is doing what it was designed to do, but the problem is that it was designed for a different job.

2. Leadership

Systems transformation requires someone, or some institution, with both the authority and the knowledge to coordinate across competing interests and power structures. In practice, those two things rarely sit in the same place.

The actor with political authority to coordinate tends to lack the technical understanding to do it well, the actor with deep technical knowledge rarely has the mandate to impose coordination across ministries or value chain actors. Ethiopia’s food systems vision worked in part because it was deliberately co-convened by two ministries, which gave it both the cross-sector legitimacy and the technical depth that single-ministry leadership could not provide. That kind of deliberate coordination architecture is lacking.

3. Uncertainty

Complex systems do not respond predictably to interventions. A procurement reform that works in New York City may produce different effects in Nairobi. This unpredictability changes what the right institutional response looks like.

Transforming a system under uncertainty requires the capacity to run pilots, embed real-time evaluation, and adjust course before scaling, which is a learning infrastructure that most project cycles and private funding milestone structures are not designed to support.

Three implications that are harder to ignore once you accept the diagnosis

The report’s framework is a policy document, not a startup playbook, so I want to be careful not to overextend its implications. But reading it as someone who spends time with agrifood founders and investors, the direction of the implications feels consistent.

1. Agrifood does not have an innovation shortage, it has an infrastructure shortage for deploying the innovations it already has

The conversation in agrifood tends to centre on what needs to be invented: a more resilient crop, a lower-emissions input, a more efficient supply chain. The FAO framework points in a different direction. The six elements it says food systems need to transform are all about coordination, transparency, and institutional design.

Governance tools that help ministries make decisions across sectoral lines. Knowledge systems that make system-level trade-offs visible before policies are committed. Procurement architecture that closes the gap between a corporation’s sustainability pledge and what its buying team actually does. None of these are biological or digital innovations in the conventional sense, but the framework suggests they may be the infrastructure or ecosystem orchestration tools that determine whether everything else gets to scale.

Agrifood is lacking the integration layer that would allow it to function as a system rather than a collection of point solutions. My understanding of what this implies is still evolving, but the conversations I find most interesting in agrifood right now are not about a new crop or a new molecule. They are about how to change the rules of the game that determine whether any crop or molecule gets adopted at all.

2. One of the biggest risks in agrifood is launching into a system that was not designed to absorb you

The adoption curves for precision agriculture, agricultural biologicals, and climate-smart farming practices all follow a similar pattern. The science often precedes broad adoption by years, sometimes decades. What eventually changes is the incentive structure around it: regulatory clarity, supply chain economics, procurement rules, and subsidy design all shift, and suddenly a technology that was technically proven but commercially stalled finds its moment.

One of the things I find underweighted in agrifood investment narratives is who actually bears the cost of being early. The system benefits when adoption accelerates, but the downside of moving first falls almost entirely on the individual producer: the financial risk, the operational disruption, the reputational exposure if the technology underperforms. Ali Morpeth, co-founder of Planeatry Alliance, put this well in AgFunder News: even producers who understand which direction change needs to go are often paralysed because “the downside risks of moving first remain disproportionately high.”

A farmer’s decision to adopt a new technology is a cash-flow decision made within the tight economics of a single growing season, not an investment decision in the VC sense. A technology that delivers ROI over three seasons requires the farmer to absorb risk for three seasons before knowing if it works. The costs of being early fall entirely on the farmer, the benefits are diffuse and slow to arrive.

Most agrifood due diligence runs in one direction: does the technology work, and will customers buy it. But it needs to run in both. Before asking whether customers will buy, ask whether the value chain surrounding that customer has any economic incentive to accommodate the technology.

A few diagnostic questions to ask: Does regulatory clarity already exist, or does the company have to create it? Do the distributors or institutional buyers adjacent to your target customer benefit from your adoption, or does it threaten their margins? Is there at least one actor in the ecosystem with an explicit mandate to coordinate across the value chain? If the answers to those questions are no, you are not launching into an ecosystem, you are trying to build one while simultaneously selling into it. That is a different company, with a different capital structure and a different timeline, than what most early-stage pitch decks describe.

3. The capital model that built ‘agrifood tech’ is structurally mismatched to the transformation timelines the sector needs

A startup can have product-market fit within a segment while being structurally incompatible with the broader system it is trying to change. A soil health technology can work on farms where incentives reward soil health investment. It will not scale in systems where commodity price dynamics, subsidy structures, and land tenure arrangements mean farmers cannot capture the value it creates.

Part of what has shifted in how I think about agrifood investment is the recognition that the standard VC model is structurally mismatched to the sector’s transformation timelines. As Michael Dean of AgFunder said in a piece for AgTech Navigator: “Going to investors and saying we can deliver 3x returns within 10 years is proving super tough.” The consensus points toward patient capital, government involvement, and strategic corporate partnerships as the funding mix the sector actually needs.

Ward’s Minimum Viable Ecosystem concept is one practical response at the startup level: before asking whether a startup can find customers, ask whether it has identified the smallest viable set of partners, incentives, and institutional conditions that would make adoption rational across the value chain.

This is a problem with a known set of partial solutions. Development finance institutions, blended finance vehicles, and strategic corporate ventures with long horizons exist and are funding meaningful work. Patient capital is not theoretically impossible to construct.

The gap is that the infrastructure for connecting agrifood founders to the right capital structure at the right stage is underdeveloped relative to the volume of companies trying to raise money. Most founders encounter the VC model first because it is the most visible, and discover after two or three rounds that the clock was set for a different kind of problem.

The practical implication: knowing which type of capital is right for the problem you are solving is as important as finding capital generally. A company trying to change a system over fifteen years, funded by investors expecting an exit in six, is in tension with its own strategy. The capital structure should match the transformation timeline, not the other way around.

Food systems were designed for a different job

Food systems were not designed to deliver multiple outcomes simultaneously. They evolved to prioritise one thing above others, usually yield, volume, or cost, and to do so within institutional structures that reward that prioritisation. The expectation that they now deliver food security, climate resilience, nutritional quality, economic fairness, and environmental health at the same time is not unreasonable. But meeting it requires redesigning the system.

The FAO report is one of the more honest assessments I have read of what that redesign requires. The barriers it identifies, misaligned time horizons, leadership gaps, and institutional inertia, are features of the same system producing the outcomes we are trying to change.

If that diagnosis is right, the implication is that the agrifood innovation ecosystem needs to make a larger bet on institutional architecture alongside product development. The field has spent a decade asking what technologies can do. The more important question is what systems need to become before technologies can do it.

The technologies that are currently proven but stalled will not stick around. Without the institutional infrastructure to absorb them, they quietly fade away: the startup runs out of runway, the founding team disperses, the IP gets shelved or absorbed into something adjacent. Founders and investors absorb the cost first, visibly, through failed fundraises and written-off positions. But the quieter cost falls on the farmers and food businesses that never got access to something that worked, and on the next generation of founders who will spend time and capital rediscovering the same dead ends.

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Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Welcome to Issue #137 of Better Bioeconomy, thanks for being here!

Today, I’m pulling apart one of my favourite annual reads, the Verdant Partners 2025 Global Food & Agribusiness M&A Review & Outlook. The report gives a practitioner’s view that most agrifood M&A commentary lacks. These are people who actually run sell-side and buy-side mandates across seeds, livestock, ingredients, equipment, and everything in between, across 30+ countries.

Reading this year’s edition, one theme kept surfacing across nearly every segment: the biggest M&A story of 2025 was separation. From Corteva splitting into two publicly traded pure-plays, to BASF preparing a Frankfurt IPO for its agricultural division, to Bunge and Viterra finally closing their mega-merger and immediately shedding overlapping assets (as part of antitrust requirements and integration), the industry is undergoing a structural unbundling that I think deserves a closer look.

But here’s what makes this more interesting: at the same time that conglomerates are breaking apart at the top, consolidation is accelerating at the segment level. Cooperatives are absorbing smaller retailers. Feed companies are rolling up regional players. Dairy cooperatives are merging into continent-spanning platforms. The unbundling is happening alongside consolidation, just at a different altitude.

Let’s dig in!

A practitioner’s read on a “suboptimal” year

Before getting into the analysis, a word on the source. Verdant Partners is a food and agribusiness-focused M&A advisory firm with offices across North America, South America, and Europe. They’ve completed over $4 billion in transactions across 30+ countries over 25+ years. (This is not a sponsored post!)

I look forward to their annual review because each section is written by someone with direct deal experience in a specific vertical. Dean Cavey on seeds, Blake Croegaert on grain handling and specialty ingredients, Graeme McCracken on agtech. Each section reads like a candid conversation with someone who just closed a transaction and has opinions about where the market is heading.

That practitioner lens is particularly useful for understanding the 2025 vintage of M&A, because the macro context was, to use Verdant Managing Partner Garrett Stoerger’s framing, “suboptimal.”

For many producers, 2025 felt like a replay of 2024. Commodity crop profitability suffered again from low prices driven by abundant supply and waning demand. High-value markets saw stable growth but felt the squeeze of persistently rising costs. Livestock producers experienced the biggest year-over-year improvement, but only after nearly a decade of pain. The overall industry mood had a carryover effect on everyone, from the farmers themselves to the upstream and downstream businesses that serve them, to the investors looking to deploy capital.

Verdant’s own framing centres on “portfolio rationalisation, capital discipline, and targeted growth.” The unbundling I’m focusing on is one manifestation of that broader rationalisation. But the targeted acquisitions happening simultaneously are the other side of the same coin, and they show up clearly in the data.

The biggest deals of 2025 were about subtraction, not addition

Let’s start with the moves that made the trade press. Corteva announced in October that its board had unanimously approved a plan to split the company into two independent, publicly traded entities.

“New Corteva” will retain the crop protection business, with estimated 2025 net sales of $7.8 billion. “SpinCo” will house the seed business, including the Pioneer brand, with projected 2025 net sales of $9.9 billion. The separation is expected to close in the second half of 2026.

Corteva itself was born from unbundling, spun out of DowDuPont in 2019, specifically to create a pure-play agriculture company. Six years later, the logic is being applied again, one level deeper. The seed and crop protection markets, Corteva’s leadership argues, have evolved to the point where the opportunities ahead for both businesses are diverging.

SpinCo is being positioned as a “classic growth compounder” that could expand beyond corn and soybeans into wheat, cotton, rice, fruits, and vegetables. New Corteva, meanwhile, will focus on operational excellence and biologicals. The underlying message is that these businesses need different capital allocation strategies, different risk profiles, and different investor bases.

Around the same time, BASF announced plans to list its Agricultural Solutions division on the Frankfurt Stock Exchange, with a target of being IPO-ready by 2027. BASF’s ag division generated €9.8 billion in sales in 2024. The company will remain the majority shareholder post-IPO, but the intent is to create a standalone, pure-play agricultural company with its own management board and strategic mandate.

Then there’s the Bunge-Viterra merger, which finally closed in July after years of negotiation and regulatory navigation. The combined entity will generate roughly $100 billion in sales. But the integration hasn’t been purely additive. As part of antitrust requirements and internal strategic review, Bunge divested five Canadian grain assets and its North American dry corn and masa milling business (acquired by GrainCraft).

Three different structures, a spin-off, an IPO, and a post-merger divestiture, all driven by the same underlying logic. The preference for focused, legible businesses is winning out over the conglomerate model at the corporate level.

The mid-market carve-outs that confirm the trend

The headline breakups get attention, but the pattern is just as visible in a series of less-publicised moves across the value chain.

Wilbur-Ellis divested its entire nutrition division to Balmoral Funds LLC, which rebranded the business as Rangen. The deal, which closed in August 2025, included animal feed, pet, and aquaculture ingredients businesses and assets. Wilbur-Ellis had acquired companies like F.L. Emmert (specialty pet ingredients) and Ametza (forage livestock pellets) within the prior two to three years, and both were included in the sale. Whether performance-driven or a strategic pivot back to its core retail business, the move brings more private equity capital into the specialty ingredients sector.

ADM and Alltech announced in September the creation of a new animal nutrition entity with 43 feed mills serving the US and Canada. The joint venture, majority-owned by Alltech, represents ADM stepping back from a segment it has operated in for decades. For ADM, this fits a broader pattern of portfolio simplification. For Alltech, it’s a chance to rapidly scale.

FBN (Farmers Business Network) announced the spin-off of its crop protection sourcing and first-mile logistics subsidiary, Global Crop Solutions. The spin-off creates two distinct companies, separating FBN’s grower-facing platform from its supply chain operations.

And in seeds, both KWS and Vilmorin & Cie (Limagrain) elected to exit the US seed corn and soybean market entirely, selling their jointly held AgReliant Genetics business to GDM, the Argentine plant genetics company. Verdant managed the transaction and describes it as perhaps one of the more surprising events in the seed sector in recent years. Two European seed majors decided that competing in US row crop genetics was no longer core to their strategy, opting instead to concentrate on their European corn businesses and other opportunities.

The common thread across all of these: shed what isn’t core, double down on what is, and make the remaining business attractive to capital that rewards clarity over breadth.

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Conglomerates are breaking apart, but within segments, consolidation is increasing

Here’s where the picture gets more complicated. While conglomerates unbundle at the top, consolidation is intensifying within individual segments, and some of the year’s largest deals reflect this dynamic.

In dairy, Arla Foods and DMK Group announced a merger in April that will create the largest dairy cooperative in Europe, bringing together over 12,000 farmers across seven countries.

In crop inputs, Sumitomo Chemical fully acquired and consolidated its European subsidiaries Philagro (France) and Kenogard (Spain) to build a unified regional hub for its biorational and chemical crop protection business. Verdant’s Luboš Grepl describes this as one of the most significant M&A developments of 2025 in the biostimulants space.

In agriculture retail, CHS completed its $225 million acquisition of West Central Ag Services, further strengthening its geographic footprint and absorbing a smaller cooperative into a larger network.

These moves share similar logic. Arla and DMK are combining to achieve the scale needed to compete in a volatile dairy market. Sumitomo is integrating to build a coherent European platform. CHS is absorbing a smaller player to spread costs and strengthen resilience. At the segment level, scale still creates value, especially in asset-heavy, margin-tight businesses where financial strength determines survival.

At the corporate portfolio level, the trend is toward separation and focus. At the segment level, the trend is toward consolidation and scale.

What changed to make unbundling the dominant strategic response in 2025

So why is this happening now? I see three forces converging.

First, the agricultural economy is bifurcating in a way that punishes sprawl. Verdant’s segment-by-segment analysis paints a stark picture. Commodity grain producers are potentially heading into a third consecutive year of hardship. Meanwhile, specialty segments, including berries, high-value vegetable seeds, premium proteins, biologicals, and healthy snacking, maintain strong margins and healthy demand.

When your portfolio spans both sides of that divide, capital gets misallocated. Profitable divisions subsidise struggling ones. The rational response is to separate, letting each business compete for capital on its own merits.

This tracks with what I explored in Issue #131, where McKinsey’s analysis of 134 publicly traded agrifood companies showed that outperformers move roughly 50% of their capital across businesses over a decade. The Verdant deal log is essentially that thesis playing out in transaction form: the companies that move capital are the ones repositioning for the next cycle.

Second, a new class of buyer has entered the market, and they’re deploying capital with sector-specific conviction. Private equity firms like KKR and Patient Square, sovereign wealth funds like ADQ, and non-agricultural strategics like DENSO are all making investments in food and agriculture. These investors think in terms of focused theses, not conglomerate logic. They want pure exposure to animal protein infrastructure, or vegetable seed genetics, or animal health distribution. Stoerger’s observation that the current environment favours “well-capitalised buyers that have the market focus and operational expertise to extract incremental value” points to this dynamic.

Third, adjacent verticals, especially biologicals and animal genetics, have matured to the point where they can stand alone as investable categories. The biologicals segment is experiencing the fastest consolidation of any crop input category, driven by EU regulation, patent cliffs in synthetic chemistry, and shifting grower economics.

Agtech investment in 2025 was defined by what Verdant calls “pragmatic digitalisation,” with investors demanding proof of ROI and commercial traction, though it’s worth noting that Verdant’s Graeme McCracken is more cautious here. He observes that many AgTech categories still require additional scale, recurring revenue, and operating leverage before becoming attractive PE investment targets.

The buy side reveals where conviction capital sees durable value

Every unbundling creates a buy side. The buyers showing up for these assets tell us as much about the future of agrifood as the sellers do, and they fall into two distinct groups.

The first group is acquiring divested pieces from the conglomerate breakups. Balmoral Funds picked up Wilbur-Ellis’s nutrition division. GrainCraft acquired Bunge’s North American corn milling business. GDM bought AgReliant from KWS and Vilmorin. These are focused operators and financial sponsors stepping into the spaces that diversified companies have vacated.

The second group is taking out standalone businesses that fit a specific thesis, which is a related but distinct dynamic. DENSO Corporation, the Japanese automotive components giant, entered the vegetable seed industry with its acquisition of Axia Vegetable Seeds, a specialist in high-quality tomato seeds for greenhouses. This kind of entry by non-traditional players signals growing interest from outside the industry in acquiring differentiated breeding platforms and advanced R&D pipelines.

Abu Dhabi’s sovereign wealth fund ADQ entered exclusive discussions with Vilmorin & Cie for a 35% stake in its vegetable seeds business. Vilmorin delisted in 2023 and is now significantly connected to a sovereign fund with no previous link to agriculture.

In Australia, KKR acquired ProTen, one of the country’s largest poultry and agricultural infrastructure businesses, with over 700 broiler sheds. A financial buyer underwriting the long-term structural demand for animal protein through infrastructure assets backed by long-term contracts. In the same region, Cargill acquired full ownership of Teys Investments, consolidating its beef processing position across Asia-Pacific.

And Patient Square Capital completed a ~$4.1 billion take-private of Patterson Companies, a leading North American and UK supplier of dental and animal health products. The animal health distribution channel is attracting PE capital at scale.

Both dynamics point in the same direction. Whether they’re acquiring divested carve-outs or taking out independent companies, thesis-driven buyers are building focused platforms while legacy conglomerates simplify. The unbundling on the sell side is being met by targeted, conviction-driven buying on the other.

What I’m watching in 2026

Conglomerates are breaking apart, but within focused verticals, integration is still the winning logic

The most visible trend in Verdant’s data is ‘deconglomeration’: diversified players shedding unrelated divisions and retreating to core competencies. But the flip side of that story is equally important. Within those focused verticals, the appetite for capability-building acquisitions has not diminished. What’s changing is the unit of integration, from portfolio breadth to segment depth.

For founders, this distinction matters because the acquirers most active in 2025 were filling specific gaps in existing platforms. Understanding exactly where those gaps sit in your most likely acquirer’s stack is increasingly the work.

Biologicals M&A is approaching the moment that separates conviction from momentum

Biologicals attracted some of the most significant deal activity in 2025, and the strategic rationale from major acquirers sounded coherent. But now will be the real test of whether those acquisitions perform commercially at scale. The products need to prove consistent field results, the supply chains need to hold, and the bundled go-to-market strategies need to generate the revenue lifts that justified the acquisition multiples.

If that proof arrives, the category enters a self-reinforcing cycle where channel confidence rises, and farmer adoption broadens. If it doesn’t, expect a quieter deal environment as acquirers absorb write-downs and the next wave of biologicals startups finds fundraising harder.

The 2025 buyer universe is a spec sheet for what to build toward

Looking across the deals Verdant tracked, the acquirers with the most conviction and the clearest strategic rationale were paying for a fairly consistent set of attributes: proprietary data assets, defensible biological IP, demonstrated commercial traction in a specific crop or geography, and technology that slotted into existing workflows rather than requiring a full practice change.

For founders thinking about exit readiness over a five-to-seven year horizon, that list is more useful than any generic “build a moat” advice. The buyers who showed up in 2025 told what they were missing. The question is whether you’re building toward that gap.

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Welcome to Issue #136 of Better Bioeconomy, weekly insights on how tech is reshaping food and agriculture for better human and planetary health. Thanks for being here!

BIO BUZZ

Products, partnerships, and regulations

🇺🇸 USDA and Department of War signed an MoU to elevate agriculture into the national security framework

• The agreement builds on the National Farm Security Action Plan announced in July, which targets agrifood research security, supply chain gaps, and domestic productivity. A new research partnership between DARPA and the USDA’s Office of the Chief Scientist has been formed, alongside a new Office of Research, Economic, and Science Security under the USDA.

• The MoU gives USDA agencies access to DARPA to accelerate the adoption of novel technologies. Its focus areas include biotech and biomanufacturing, American-made research, and building a “21st-century agro-defence workforce” through higher education programmes.

• The two departments will share intelligence on food system threats, technological requirements, and economic trends. USDA testbeds may be used to fast-track testing, validation, and deployment of agricultural biosecurity technologies through an “expedited but bounded pathway” that maintains safety and oversight.

Source: Green Queen

💰 Cellular agriculture infrastructure company IntegriCulture reaches profitability through a multi-sector strategy

• The Japanese company posted a net profit of JPY40M ($255k) for FY Oct 2024-Sept 2025. It funded itself through cosmetics and other non-food uses while continuing to supply cellular agriculture startups and run CRO (Contract Research Organisation) work.

• The company is transitioning from a supplier-CRO model to a CRDMO (Contract Research, Development & Manufacturing Organisation) while building full-stack infrastructure for cellular agriculture, including cell culture media, scaffolds, and low-cost hardware. Management says each segment is already profitable on a unit basis, with further growth expected in FY25 (Oct 2025-Sept 2026).

• Instead of relying on large, expensive stir-tank bioreactors, IntegriCulture focuses on compact packed-bed and adherent systems to reduce costs and risk. Its scale-up work is supported by Japan’s SBIR program, while scale-out development includes collaboration with Sumitomo Riko on low-cost, oxygen-infusion-free bioreactors.

Source: AgFunder

Thoughts 🤔:

IntegriCulture turning profitable is a useful reality check for cell ag. One of the first businesses to show durable economics is not a cultivated meat brand, but an enabler selling infrastructure, with cosmetics acting as the near-term profit pool rather than food.

Three signals stand out to me. First, “picks & shovels” are proving bankable before the headline products, echoing how CDMOs and toolmakers in biopharma captured value well ahead of many novel therapeutics. Second, diversification into non-food verticals is becoming the default de-risking pattern while food-grade regulation, CAPEX, and cost curves catch up. Third, their pivot away from massive stirred tanks toward modular, adherent and packed-bed systems hints that cell ag scale may look more like distributed solar than a few giga-factories.

This suggests that, at least in the near-term, the most resilient opportunities in cellular agriculture will sit in infrastructure, services, and adjacent ingredients rather than pure-play cultivated meat brands.

🌾 Syngenta becomes first to bring a commercially scalable hybrid wheat to market in Europe

• X-Terra hybrid wheat has received regulatory approval in France, with the first two varieties, SY Sphynx and SY Xanthis, available to farmers for the 2026 sowing season. The milestone is the result of more than 15 years of work cracking wheat’s genome, which is nearly six times larger than the human genome.

• The varieties are engineered for climate resilience, offering improved tolerance to septoria (one of Europe’s most economically damaging wheat diseases) and integration with Syngenta’s Cropwise digital platform for early disease-pressure alerts. The approach positions X-Terra as a system-level innovation rather than a standalone seed product.

• Syngenta plans to extend the platform to the UK and Germany following the French approval, framing hybrid wheat as a cornerstone of Europe’s next generation of climate-resilient cereals. For a crop that supplies nearly one-fifth of global calories, the shift to hybrid performance carries major food security implications.

Source: AgTechNavigator

Thoughts 🤔:

Wheat might be is starting to follow maize and barley toward a world where hybrids become the performance benchmark. That can change who captures value, because more of the category shifts from farm‑saved seed to annual repurchase tied to proprietary genetics and playbooks.

Bundling X Terra with Cropwise and integrated agronomy reframes “seed choice” into “system choice.” Once your yield risk, disease alerts, and input protocols are tuned around a specific hybrid and data stack, switching becomes costly.

The question is whether the economics clear the bar for European growers after the seed premium and tighter management recipes. If the hybrid‑plus‑digital package can reliably buy a few points of margin and more predictable yields under climate volatility, this looks like the start of a cereals platform shift.

🔎 Carbon Robotics unveils its Large Plant Model, the ‘most advanced AI model’ for plant detection and identification

• The Large Plant Model (LPM) is trained on years of plant images across varying soil types, climates, and growth stages. It can identify a new weed immediately, including how it will look from different angles and as it matures, without sending data back to a data centre for retraining. Farmers with Carbon Robotics’ existing LaserWeeder machines can access it via a software update.

• The new PlantProfiles feature lets farmers use the Carbon Robotics iPad Operator App to select photos of their specific crops and weeds. The system then automatically adjusts to the parameters of that field, cutting setup time and making the tech usable without deep technical knowledge.

• LPM moves away from the traditional computer vision architecture used in earlier LaserWeeder models, which could not adapt to new plants in real time. CEO Paul Mikesell says parts of the AI architecture are now more advanced than those used in self-driving cars, and positions LPM as bringing that frontier AI capability to a part of agriculture that has largely missed out on recent advances.

Source: AgFunder

Thoughts 🤔:

This is showing up as three constraints tighten at once: herbicide resistance keeps rising, input economics remain volatile, and seasonal labor windows are still unforgiving.

Cloud-centric ag AI also hits practical ceilings in the field, since connectivity is uneven and in-row decisions cannot wait on round trips to a data center. Carbon’s bet is edge inference plus a fleet data flywheel, turning deployed machine-hours (and a very large labeled plant dataset) into compounding model advantage.

The playbook rhymes with AV autonomy and precision equipment: ship useful hardware, harvest messy edge cases at scale, then shift value capture toward the perception and decision layer. The question is whether the software stack becomes the thing growers renew and competitors struggle to replicate.

If Carbon can keep performance strong across crops and regions, this shifts the advantage toward whoever has the most machines working in real fields.

🍄🐄 Joyn Foods earned K-12 approval in South Carolina, allowing it to sell its mycelium-enhanced blended meat to schools across the state

• The US startup (formerly Mush Foods) secured statewide purchasing access through the South Carolina Purchasing Alliance (SCPA). This approval is important because school bids require strict compliance with USDA standards, competitive pricing validation, and proven student acceptance through pilot tastings.

• Its 50Cut blend mixes beef, mushrooms, and mycelium. By partially replacing conventional beef, the blended protein reduces environmental impact while improving nutrition without asking school kitchens to change how they operate.

• In tastings, students gave the meatballs a 96% approval rating and the burgers 92%. Even K-2 students responded well, with 84% positive feedback. With the National School Lunch Program serving nearly 30 million meals a day, even small formulation changes in ground beef can impact millions of meals annually.

Source: Green Queen

Thoughts 🤔:

One thing I keep coming back to in “alt protein adjacent” stories is that the real bottleneck is rarely the ingredient science. It’s distribution through procurement systems and kitchen reality.

In the near term, scale tends to flow to products that fit existing institutional rails. Bid lists, meal pattern compliance, and predictable pricing matter more than consumer branding when the buyer is a school district, hospital, or university. If something can drop into the same recipes, equipment, and prep flow, it meaningfully lowers the adoption cost.

Blended formats also feel like a pragmatic cultural layer. They can improve nutrition and reduce footprint without asking customers to opt into an identity statement. In a polarized food narrative, that “balanced protein” positioning might end up being a feature. This is especially true in public and contract catering, where quiet reformulation can move faster than consumer sentiment.

🍼 Tech breakthrough lets PFerrinX tune iron loading in its precision-fermented lactoferrin by application

• The startup has developed a process to precisely control iron saturation in its NanoFerrin ingredient, producing three distinct profiles: apo-lactoferrin (0% iron) for immunity and cosmetics, native lactoferrin (~10%) for infant nutrition, and holo-lactoferrin (100%) as a gentle iron supplement.

• Most precision-fermented lactoferrins, the company claims, default to high iron saturation (75%+), which limits their utility in applications like infant formula, where lower levels are preferred.

• PFerrinX has secured manufacturing capacity of 200 metric tons across sites in the EU and Asia, with room to scale to 400 tons based on demand. The company says it can currently produce at cost parity with dairy and plans to undercut dairy’s $300/kg production cost within 24 months, with multiple regulatory filings underway.

Source: AgFunder

Thoughts 🤔:

The first wave of animal-free lactoferrin was a pure supply story: can we make the same molecule, at scale, without cows. The PFerrinX news points to a next phase: spec-defined ingredients where attributes like iron saturation are tuned, validated, and sold as the product itself rather than left as a back-end QC detail.

That could shift the competitive moat in precision fermentation downstream. Strain IP and stainless steel still matter, but differentiation starts to look like finishing, QA, and the ability to guarantee a functional state batch after batch, and eventually across sites. It’s a more “formulator-first” world where customers brief against performance tolerances, claims defensibility, and risk profiles.

Once buyers have options, procurement behavior tends to reward suppliers who can industrialize reliability: tighter variance, better comparability packages, clearer spec sheets, fewer surprises during scale-up.

🍫 Cargill has partnered with Kokomodo to validate commercial cell-based chocolate solutions, with support from EIT Food

• The partnership builds on EIT Food’s €20,000 investment in Kokomodo in late 2024 and its selection as one of 16 startups in the 2025 RisingFoodStars cohort. These programmes are designed to help promising agrifood startups validate, scale, and commercialise transformative tech more rapidly.

• Cargill and Kokomodo will run trials in industrial settings, testing how cell-based cocoa performs in beverages, dairy, and confectionery. They’ll assess functionality, taste, and whether it can be produced at scale. Initial functional test results are expected in the coming months.

• Kokomodo’s tech uses cocoa cells sourced from premium Central and South American beans to create sustainable, future-proof cacao ingredients. Cargill says the project fits its “portfolio mindset,” giving product developers another route for cocoa formulations while reducing pressure on traditional supply.

Source: Green Queen

BIO BUCKS

Funding, M&As, and grants

🧬 Resurrect Bio raised $8.1M Series A led by Corteva to advance its AI-powered platform for restoring crops’ innate disease resistance

• UK-based startup has developed a three-part platform, anchored by its FloraFold AI tool, that maps the molecular interactions between pathogen effector proteins and plant NLR immune proteins. By identifying precisely where pathogens bind to suppress a plant’s immune response, it can pinpoint the exact gene edits needed to block that interaction and restore full resistance to fungal disease, oomycetes, and nematodes.

• Rather than performing gene edits itself, Resurrect Bio delivers validated editing targets to seed company partners who apply techniques like CRISPR to their own germplasms. The approach is crop-agnostic and pathogen-broad, with current focus on soy, corn, wheat, rice, cotton, and brassicas. Some resistance changes require as little as a single amino acid substitution.

• The company is targeting 18 disease resistance traits across its blockbuster crops in the next three years, alongside improvements to FloraFold’s predictive accuracy. Several joint development agreements with leading seed companies are expected to be announced shortly. Revenue will come from milestone payments, success fees, and profit-sharing on licensed seed traits.

Investors: Corteva Catalyst, Calculus Capital, Pymwymic, UKI2S, SynBioVen, and AgFunder

Source: AgFunder

Thoughts 🤔:

The few signals I’m watching in the Resurrect Bio news are about where trait discovery is trying to go next. First, the industry seems to be testing a shift from bespoke, single-trait programs toward horizontal platforms that can repeatedly identify edit targets across crops and pathogens. The moat moves from “we have one great trait” to “we have the fastest, most reliable discovery-to-deployment loop with seed partners.”

Second, the emphasis on minimal edits, looks like a deliberate regulatory and adoption strategy. It’s a way to fit through the narrowest NGT‑style gates and keep optionality in tough markets like the EU and UK, while also making the edits easier to explain to downstream buyers.

Third, Corteva leading via Catalyst reads like pre‑bought option value ahead of its planned seed and crop protection separation in the second half of 2026. In a split, each entity needs its own pipeline narrative. External trait platforms can support the seed side’s cadence and give the crop protection side a path into more durable, lower‑scrutiny resistance “products” as chemical pressure builds.

🤖 Upside Robotics raised a $7.5M seed round to cut fertiliser use and waste in corn crops

• The Canadian startup builds lightweight, solar-powered robots that apply fertiliser only when plants need it. The company says the approach can cut fertiliser use by 70% and save farmers about $150 per acre per season. It uses its proprietary algorithms with soil and weather data to optimise nutrient delivery

• The startup has shown rapid traction, expanding from 70 acres in 2024 to 1,200 acres in 2025, with projections to exceed 3,000 acres in 2026 while keeping 100% customer retention.

• Only 30% of traditionally applied fertiliser is absorbed by crops, leaving 70% wasted. Upside targets this inefficiency, starting with corn, one of the most fertiliser-intensive crops. With more than 200 farms on its waitlist, Upside plans to use the funding for R&D, to scale operations, and to expand into the US corn belt.

Investors: Plural, Garage Capital and the founders of Clearpath Robotics

Source: TechCrunch

🎯 Kilter raised €6.5M pre-Series B led by Kubota to scale its autonomous spot-spraying robot for high-value crops

• The Norwegian startup’s AX-1 spraying robot identifies individual weeds using AI and applies only a few droplets of crop protection product to a 6×6 mm target area. The system avoids damage to surrounding crops while significantly cutting input volumes. It currently supports more than 15 crop types.

• Alongside the investment, a distribution partnership with Kubota will make the AX-1 available through dealer networks in Germany and the Netherlands from 2026. The arrangement pairs Kilter’s precision nozzle tech and AI capabilities with established machinery expertise and commercial infrastructure across key European markets.

• The robot is positioned for growers facing herbicide resistance and tightening regulatory frameworks in Europe, where effective active ingredients are becoming increasingly scarce. The new funding will support international expansion, further tech development, and pilots across additional crops and markets.

Investors: Kubota, SBG Invest AS, Pymwymic, and Nufarm

Source: Future Farming

Thoughts 🤔:

Kubota leading Kilter’s round looks like an OEM testing a new role: platform orchestrator in crop care. The interesting delta is the pairing of capital with a Smart‑Farming‑branded, dealer‑led rollout in markets like Germany and the Netherlands. That effectively turns distribution, servicing, financing, and uptime into the core product.

If that model works in specialty crops, it could become the fastest path for robotics to clear adoption friction, because growers buy reliability and support as much as they buy capability.

The other interesting shift is how “precision” is being reframed. Ultra‑targeted spot spraying is increasingly regulatory and operational de‑risking, not just an input‑saving feature. In Europe, where crop protection constraints tighten, how product was applied could become a compliance edge and a buyer requirement.

🐝 Polybee raised $4.3M seed round to scale its drone-based pollination and AI yield forecasting tech

• The Singapore-based startup uses small drones that launch and recharge on their own. Fitted with cameras, they track crop health, ripeness, and variability throughout the season. That stream of images feeds models that tell growers where and when to harvest to improve yield and margin.

• Customers report up to 3x higher profits from better harvest timing and earlier detection of crop stress. In greenhouses, autonomous pollination has delivered up to 15% yield gains. These benefits are especially valuable during shoulder seasons when market prices are highest.

• The new funding will help Polybee scale quickly, aiming for a five-fold jump to more than 4,000 acres by 2026. The company sells an end-to-end subscription (fixed fee per hectare, no upfront drone purchase) that cuts labour, improves consistency, and reduces the risk of pollination versus bumblebees or manual work.

Investors: Paspalis Capital, elev8 VC, SEEDS Capital, and strategic angel investors, including Blue River Technology founder Jorge Heraud

Source: AgFunder

Thoughts 🤔:

The interesting signal in Polybee’s approach is the reframing of pollination as an operational risk line item that can be engineered and monitored. Bees and manual stimulation work, but they introduce labor exposure and biosecurity complexity. If controlled airflow can deliver consistent fruit set with lower variance, pollination starts to look like fertigation or climate control: a managed input with tuning knobs, logs, and accountability.

Another interesting signal is the move from maximizing yield to maximizing timing. “Right-time yield” is basically revenue management for produce. If you can predict ripeness and variability continuously, you can make better harvest decisions, hit contract specs more reliably, and capture shoulder-season pricing without guessing.

This could be a real step toward algorithmic biology in high-value crops if unit economics and reliability hold across sites. Otherwise it stays a premium tool for labor-constrained, biosecurity-sensitive growers.

❄️ CryoBio raised $1.3M in pre-seed funding to cut frost-related crop losses with a biologic crop protectant

• Frost damage drives an estimated $30B in global food waste, enough food to feed 200 million people. The New York-based startup was created to fill a market gap in frost-specific crop protection solutions. Frost damage has doubled over the past decade and is expected to double again as climate change and earlier planting push growers into riskier windows.

• The company’s lead product is an anti-freeze molecule made through precision fermentation. It can protect crops from frost for several days up to two weeks, depending on the crop. CryoBio is also working on a seed-treatment version designed to run through farmers’ existing equipment.

• Aiming for a 2028 launch, CryoBio is running five-acre field trials with nearly 30 growers across New York, Maryland, and Washington. The next round will fund biomanufacturing scale-up from grams to kilograms and expand trials to larger acreage.

Investors: Marble, Ag Ventures Alliance, NY Ventures, Launch NY, FuzeHub, and impact angels.

Source: AgTechNavigator

Thoughts 🤔:

Frost is becoming first-class climate risk category with its own solution stack. We now have credible estimates that spring frosts destroy food equivalent to feeding hundreds of millions of people each year, and a new wave of biological tools is targeting that loss. That reframing is important because once a risk is quantified and repeatedly priced into losses, it competes for the same mental and budget real estate as drought, heat, and disease.

The big question is whether performance holds across messy field conditions, not just in the best case. Biological and bio based claims often compress when you add region, variety, and microclimate variance. If multi-site data shows consistent ROI, frost could become a budget line item rather than an emergency response.

🦠 MicroHarvest secured a €5.5M German government grant to build an industrial-scale microbial protein plant in Leuna

• The plant will produce 15,000 tonnes of protein annually for pet food, human food, and aquaculture. Production is expected to begin within two years, with molasses as its primary feedstock through an already-secured regional supply chain.

• The Hamburg-based startup’s biomass fermentation process runs in just 24 hours and produces protein with over 60% raw content, a complete amino acid profile, high digestibility, and an umami flavour that improves palatability. Its MPX Care pet food ingredient has already appeared in The Pack’s Gut Bites and Vegdog’s dog and cat treats, while MPX Boost and Hilix target the aquaculture market.

• The company reviewed 40 European sites before selecting Leuna for its feedstock proximity, industrial infrastructure, and surrounding agri-processing network. MicroHarvest will work with Industriepark Leuna as its park operator and utilities provider, with local and federal stakeholders supporting the project through permitting and investment incentives.

Source: Green Queen

🐄 Ruminant BioTech launched CAD$7.6M program to validate its slow-release methane-reduction bolus for pasture-raised cattle

• The New Zealand startup’s slow-release bolus sits in the animal’s stomach and steadily delivers bromoform, a methane-inhibiting compound. Unlike feed additives suited to intensive farming, this approach works in grazing systems where daily controlled feeding is not practical. Animal trials suggest that one dose delivers a 75% reduction in methane for over 100 days, with the team targeting 6 months.

• The three-year, on-farm program is designed to secure Canadian registration for beef cattle and generate data needed for future expansion into the US, Brazil, and the EU. It is backed by a CAD$2.8M Alberta government grant, CAD$3.4M from two industry partners, and CAD$1.4M from Ruminant BioTech’s own funds.

• The company’s business model leans on carbon insetting and offsetting to cover costs where there is no direct productivity payback for farmers, pointing to carbon markets now worth over $1T and covering 25% of global emissions. CEO cited Brazilian meat giant Marfrig’s methane targets as evidence that major food companies are seeking solutions.

Source: AgFunder

BIO READS

Thought-provoking opinions

🇮🇳 India will see IPOs in agritech before America or Europe

• Omnivore’s Mark Kahn argues that Indian agritech is structurally different from Western markets and could see IPO exits earlier, given more accessible public markets and strong domestic investor appetite.

• Mark traces India’s agritech boom to the post-2016 shift from consumer e-commerce to B2B marketplaces and farm-to-consumer brands. Fragmented smallholder supply chains have been reorganised through service-based and asset-light models.

• He also points to growing opportunities in biomanufacturing, full-stack CDMOs, robotics, and climate-aligned companies. And he rejects the idea that smallholder agriculture is charity-driven rather than a scalable, tech-enabled business opportunity.

Source: Mark Kahn

🧩 Antifragile agriculture: How to stop playing the old game

• Christine Gould, founder of GIGA Futures, argues that agrifood innovation is structurally fragile because incumbents, investors, and policymakers continue to optimise for protecting the existing model rather than building new growth engines.

• Drawing on examples from sectors such as defence, tech, and consumer goods, she introduces the concept of “antifragile agriculture.” In this approach, volatility is treated as a catalyst for capability-building through portfolio thinking, scaling infrastructure, and circular innovation systems.

• The piece is both a critique of risk-averse capital and corporate behaviour, including signals like the shutdown of FMC Ventures, and a call for deliberate architectural shifts that would allow agriculture to generate its own AWS- or ZX-style breakout platforms.

Source: Christine Gould

🤔 The ag input industry is entering its most active restructuring cycle since the 2010s consolidation wave

• The global crop input industry is undergoing a structural reset driven by patent expiries, generic competition, regulatory pressure, and higher capital costs.

• After a decade of consolidation in the 2010s, large incumbents such as FMC, Syngenta, BASF, Corteva, Bayer, UPL, and Nufarm are now reassessing their portfolio composition, capital structures, and organisational designs.

• Jorge argues that what we are seeing is not isolated corporate events, but a broad cycle of unbundling and strategic repositioning that could reshape competitive dynamics across seeds, crop protection, and biologicals over the next several years.

Source: Jorge Fernández Vidal

🏆 The FoodTech World Cup is officially underway for 2026!

Applications are now open for Founders pushing the boundaries of biotech in food.

FoodHack and Nestlé Research are ready to uncover fresh talent and spotlight the most promising solutions.

How it works: 15 top teams will advance through to the virtual Semi-Final before the 5 brightest go head-to-head at the HackSummit’s Grand Final in Lausanne on 23rd April.

Already confirmed on the Jury are Bodil Sidén (Kost Capital), Celine Schiff-Deb (Mista / Givaudan), Gil Horsky (Flora Ventures), Eugenia Barcos (Nestlé Research), Steve Molino (Synthesis Capital).

Enter your startup today!

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Thank you, and have a great day!

Disclaimer: The views and opinions expressed in this newsletter are my own and do not necessarily reflect those of my employer, affiliates, or any organisations I am associated with.

Thanks for being here. For Issue #135 of Better Bioeconomy, I sat down with Ferry Kamp, Founder and Managing Partner of Remagine Food.

Ferry brings over two decades of food industry experience, with senior leadership roles at Unilever, leading corporate venture building for clients such as Nestlé, Danone, and Heineken at Startupbootcamp-Innoleaps. He has driven commercial scaling and international expansion at plant-based pioneers, including Meatless Farm and GREENFORCE, and now backs and builds companies through Remagine Food, an operator-led food system investment platform that replaces passive capital with hands-on scale execution.

In our conversation, we unpacked what “invest and build” means in practice, why so many food tech startups fail to scale, how to design corporate partnerships that help startups, and how to match capital types to the risks in food tech. We also dug into portfolio construction when exits are mostly strategic M&A, and why Ferry is leaning into system-level infrastructure rather than premium sustainability plays.

Let’s jump in!

Inside an operator-led food system fund

Remagine Food began as a hands-on venture builder that helped food tech companies with commercial scaling, restructuring, and growth for other investors’ portfolio companies. Over time, Ferry and his partners kept running into the same challenge: before they could actually accelerate growth and scale, they first had to spend months fundraising just to secure the budget to do the work. So as a natural next step, they joined forces with Hive Capital to combine building and investing, a model designed to accelerate scale, not just fund innovation.

In practice, operator-led for Remagine Food means they “don’t stop at the cheque.” When they invest, they also commit time, people, and execution capacity. That includes hands-on work on commercial strategy and pricing, support on partnering with manufacturers and ingredient suppliers, help structuring follow-on rounds and M&A pathways, and, in some cases, stepping in as interim operators or board-level executors.

A traditional VC might invest in over 20 companies and expect one or two to break out, but in food, capital cycles are long, scale-up is messy, and most failures come from commercial and operational friction. Ferry’s view is that it is better to back fewer companies and be deeply involved in how they grow, partner, and finance the journey from idea to scale.

The classic VC playbook is rooted in software and Silicon Valley, where low marginal costs and fast feedback loops make it rational to swing often and let compounding take care of the rest. Food is different. The industry is more complex, with many actors from farmers to processors to retailers, and the path to scale runs through manufacturing, regulation, and supply chains that are unforgiving. In that environment, Ferry argues, you need investors who know the industry and are willing to behave like operators, not just capital allocators.

Why 90% of food tech fails to scale

The world does not lack food tech innovation. Technologies exist, and solutions are ready, but they lack scale and real impact. Many products are founded with the ambition to improve health, the environment, or social outcomes, but without scale, they never make a meaningful impact.

Ferry sees five recurring failure modes:

1. Commercial naïveté: Teams spend five or six years in the lab, then assume they can go straight from the lab to the shelf and are surprised when customers are not lining up. They have brilliant tech but no real buyer insight, no clear go-to-market, and no robust pricing model.

2. Scale illusion: Pilot success is mistaken for scalable demand. A product that works in one pilot or a small market is assumed to be ready for global rollout, without the intermediate steps of small-scale launch, national or regional rollout, and proof of a repeatable sales model.

3. Manufacturing mismatch: Technology that works in the lab does not work on industrial lines, or cannot be brought to a cost level the market will tolerate. The result is a solution that is technically sound but trapped in a small premium niche, far from the total addressable market (TAM) promised in the early pitch deck.

4. Capital structure errors: Teams use high-risk VC capital to fund heavy CAPEX, long manufacturing ramps, or low-margin infrastructure that should be financed with debt, strategics, or customers. The wrong capital ends up carrying the wrong risk.

5. Founder role lock-in: Technical founders with strong science backgrounds often stay too long in commercial leadership roles they are not equipped for, becoming bottlenecks as the company shifts from invention to scale. Ferry sees a clear difference between first-time founders, who often have blind spots around their own gaps, and serial founders, who know when to bring in complementary leadership or step aside.

Given that context, Remagine Food’s evaluation lens goes beyond “Is the tech good?” and asks three harder questions:

1. Is there a repeatable buyer with urgency? Ferry wants to know who needs this at scale now and why, and whether they are willing to pay today.

2. Does the company understand its “scale unit”? That could be tonnes per year, factories per region, or customers per line, and can articulate how that unit grows without breaking unit economics.

3. Is the founding team adaptable? The best founders evolve from inventors to builders to leaders. They pivot if needed and adjust the business model as the market reacts.

The top 10% of companies that break out are not always the most innovative, but they are the most adaptable.

Building corporate partnerships that work for startups

On paper, startups and corporates look like a perfect match. The speed and creativity of a startup, paired with the scale and muscle of a multinational. In reality, Ferry has watched many of these collaborations unravel into culture clashes and stalled pilots. Startups optimise for learning and iteration, while corporates show up asking about gross margins and risk controls from day one.

His view is that most collaborations are designed for the corporate, not the startup. Corporate processes and governance quickly become straitjackets that slow founders down, drain teams, and sometimes push them out. If a partnership does not remove the startup’s biggest scaling bottleneck, it is a distraction.

From a founder’s seat, good partnerships share four non-negotiables:

1. Named internal owner: Someone inside the corporate whose P&L or bonus depends on the partnership’s success. If everyone “supports” the startup but no one owns it, nothing moves.

2. Clear value exchange: Not vague “learning” or “exploration,” but explicit access to assets: manufacturing capacity, customers, regulatory muscle, or distribution.

3. Time-bound decision path: Founders should know what decision gets made in six to twelve months if milestones are hit, whether that is a rollout, a strategic investment, or more capacity.

4. Founder protection: IP ownership, decision rights, and commitments need to be clear up front. The agreements Ferry structures with strategics include in-kind contributions like production, clinical trials, and customer access to avoid the “no one picks up the phone” problem after the deal closes.

Finding the right capital stack for scaling

Food tech gets into trouble when teams try to force it into a software-style funding approach. Ferry’s golden rule: Match the capital type to the risk you’re trying to remove. Most startups fail because they fund scale risk with innovation capital.

He breaks the stack into four broad buckets.

Venture capital

VC should fund early tech validation, building the core team, and first commercial proof points. This is the phase where high-risk capital is needed because the basic question “does it work and will anyone pay for it” is not yet answered, and banks or strategics will not step in. Where Ferry sees trouble is when VC money is used for heavy CAPEX, long manufacturing ramps, and slow-margin infrastructure.

Strategic capital

Money from large food or ingredient companies is best used once there is clear commercial pull and should buy more than cash: manufacturing access, raw materials, go-to-market acceleration, and de-risked scale.

In one precision fermentation deal Remagine Food is closing, two of the largest ingredient companies are investing capital and in-kind support, including production, clinical trials, and customer introductions, with automatic follow-on investment if the startup hits its milestones. Those strategics are also likely M&A candidates down the road, effectively building a highway to scale rather than a series of disconnected rounds.

Debt and project finance

Debt becomes viable when unit economics are proven, contracts or offtakes exist, and CAPEX has predictable returns. At that point, the business starts to look like something a bank or project financier recognises: evidence of demand, line of sight to payback, and enough operational stability to carry leverage.

Grants

These are powerful tools for technical risk and early pilots, especially in ecosystems like the Netherlands, where clusters around precision fermentation or alternative proteins offer structured support. The risk is that they delay exposure to real customers, pushing teams to optimise for winning proposals instead of winning buyers.

Designing portfolios for strategic outcomes, not unicorn IPOs

In a market where liquidity is scarce and most exits are likely to be strategic M&A rather than IPOs, portfolio construction warrants reconsideration. For Remagine Food, in collaboration with Hive Capital, that starts with treating the fund itself as a collective: bringing strategics in as LPs, working with governments and other investors, and using that ecosystem to see what the industry wants solved.

That information then drives capital allocation. If you know what large buyers are trying to solve, you can build or scale companies against those specifications, increasing the odds they become customers, strategic investors, or acquirers. Strategics are also more patient than purely financially driven investors, giving companies time and technical and commercial support, which Ferry believes leads to stronger businesses and higher valuations.

For fund design, this means underwriting to credible buyers, not just big TAM numbers, and accepting that “base hits” matter. Multiple 2-5x exits into strategic buyers can drive strong fund returns if you own meaningful stakes and shorten growth cycles through active involvement. Food tech does not need unicorns to work. It needs repeatable strategic outcomes mapped against clear M&A pathways.

What’s interesting now and what isn’t

Asked what excites him, Ferry leans toward system innovation rather than single products. Four clusters stand out in his mind:

1. Precision fermentation platforms with credible pathways to reduce costs.

2. Ingredient technologies that plug into existing supply chains.

3. Fermentation, enzymes, and process technologies that upgrade today’s food system rather than replace it.

4. Food waste valorisation: turning food loss into high-value ingredients and building profitable businesses.

Food loss is the topic the conversation kept circling back to. More than 40% of food produced is lost or wasted, and roughly half of that loss happens early in the chain at farms, in transit, or in factories. That early-stage loss is worth hundreds of billions of dollars and represents one of the biggest margin levers available to producers and retailers.

Yet loss and waste are still treated as background noise, simply baked into business cases. Ferry expects prevention to move from nice-to-have to must-have as it becomes mathematically impossible to feed a growing population while throwing away 40% of output, and as companies see that cutting losses improves margins more than marginal logistics tweaks.

On the flip side, there are areas where Remagine Food is deliberately cautious (for now). Ferry is less interested in end-of-chain brands and propositions that rely on consumers paying a premium for sustainability. After working closely with alternative protein and meat analogue companies, Ferry no longer believes that direct meat imitation is the main path forward, especially when plant-based burgers are priced much higher than meat for households that rarely cook burgers in the first place.

He sees more potential in natural, clean and flexible plant-based ingredients that slot into dishes people already cook, at budgets they can live with. That lens also shapes his view of cultivated meat and some alternative protein plays: they are not dead, but they are ahead of their financing reality, with unresolved questions around consumer adoption and reaching mainstream price points before other solutions fill the space.

Ferry’s closing thoughts: “Food system transformation will not be led by better pitch decks. It will be led by people who know how to build, finance, and operate in complexity. That is the gap Remagine Food is trying to close.”

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