August 19, 2020

Photo credit: Lever VC

By Lynda Kiernan, Global AgInvesting Media

Lever VC, an early stage alternative protein investor, announced the completion of a first close for Lever VC Fund I at $23 million. 

Headquartered in Hong Kong, Lever VC has connections with some of the top global names in alternative protein, with partners Lawrence Chu and Nick Cooney being early investors in Beyond Meat, Kite Hill, Impossible Foods, Aleph Farms, Memphis Meats, and other category leaders.

Nick Cooney is also a co-founder of The Good Foods Institute, the largest alternative protein industry NGO in the world, that has worked with major food groups across North America, Europe, Latin America, and Asia for 15 years, bringing together scientists, investors, and entrepreneurs focused on clean meat and plant-based alternatives to animal-based products looking to make food in new and better ways. 

Partners Nick Cooney and Lawrence Chu have been investing in the alternative protein space since 2015, and have venture partners in the U.S., UK, France, Israel, India, Hong Kong, mainland China, and Singapore. With this experience and network behind them, the team has built out a portfolio that currently stands at 10 cutting-edge, global alternative protein investments across the U.S. Asia, and Europe.

Together, the fund’s expert team have a combined 25-plus years of experience in investing, launching companies, and selling and marketing alternative protein products, and have deployed in excess of $1.5 billion in venture capital and private equity commitments, including in more than 40 early stage alternative protein deals. 

“The alternative protein market is continuing to grow quickly, and with our deep experience and proven record of returns in the sector, as well as preeminent deal flow across the North America, Europe, Asia and beyond, Lever VC is perfectly positioned to deliver value to investors looking for financial or strategic exposure to alternative protein,” said Lawrence Chu, who has deployed more than $450 million in private equity investments in conventional animal protein companies.

Lever VC uses its own proprietary database to track more than 1,200 alternative protein companies in the world. But currently, the portfolio for Fund I includes:

TurtleTree Labs – the first company in the world to produce cow’s milk and human breast milk through cell cultivation. 

Better Meat Co. – maker of a plant-based meat protein blend featured in Perdue Farms products in more than 7,000 grocery stores across the U.S.

Good Planet Foods – a top plant-based cheese producer with distribution in Walmart, Albertsons, Kroger, Costco, White Castle, and elsewhere.

Mission Barns – a maker of cell-cultivated bacon products that are currently available in select restaurants in the San Francisco Bay area. 

The Good Spoon – a rapidly growing plant-based condiment brand being distributed throughout Europe, and –

Bond Pet Foods – the first company in the world to make real meat protein through fermentation.

“We decided to invest in alternative protein in 2018, and started approaching a few VCs,” said Benny Pei, Lever VC Partner and CIO of Lever VC GP DFP Capital. “We were most impressed with the Lever VC founders’ long investment experience and track record in this exciting field, so we joined them to start strategically deploying assets in this fast-growing global sector.”

By 2050, the dietary needs of more than 10 billion people will have to be met – and met in ways that are sustainable, reduce climate change, and mitigate environmental challenges.

Alternative protein sources have been increasingly on the radar of both consumers and investors. Global protein consumption is expected to climb at a CAGR of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Over this same time period, alternative protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in meat and seafood production as consumers become more engaged with their food supply chains. 

In the months between January and July 2020, investment in plant-based foods exceeded $907 million, compared to investment of $457 million for all of 2019, and over the same time period investment in cell-based meat totaled $209 million, according to a report released by FAIRR – an investor network that estimates that the entire alternative protein market will be valued at $17.9 billion by 2025. 

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.