May 4, 2020

By Lynda Kiernan

The Trendlines Group announced that the Trendlines AgriFood Fund has made its second investment in Singapore-based agbiotech startup Insectta.

In October 2019, Israel and Singapore-based Trendlines Group secured up to $22 million in conditional capital for its Singapore-based Trendlines Agrifood Pte Ltd (Fund), which is managed by Trendlines via its wholly-owned subsidiary, Trendlines Agrifood Innovation Centre Pte Ltd. 

As a vehicle born of an investor and innovation commercialization company, this fund serves as the foundation of Trendline’s Asia-Pacific headquarters in Singapore, investing in local innovative agtech startups, as well as in foreign agrifood companies.

The $22 million in conditional commitments, which included commitments previously announced on July 19 of last year, were invested by Temasek, a sovereign holding company of Singapore; Librae Holdings, an entity connected to Vincent Tchenguiz, a UK-based billionaire; and an unnamed investor from Southeast Asia.

“We are excited to have Temasek, Librae Holdings, and the additional investor investing with us in the new fund,” Steve Rhodes, chairman and CEO, Trendlines, said at the time. “All of these groups are deeply experienced, active investors which will bring us strategic value, as well as financial backing. We are equally pleased to be able to start the Fund’s investment activities in Singapore and around the world.”

The Trendlines Agrifood Fund made its maiden investment in February of this year when it committed $1.6 million of a $10 million Series B for computational seed breeder Equinom, which is working to develop a portfolio of non-GMO legumes that have 50 percent more protein content than current commercial varieties. The round was led by BASF Venture Capital, and also included existing investors Israeli private equity fund Fortissimo Capital, and Roquette, a leader in the global plant-based ingredients sector. 

Joining Equinom is Insectta. Originally founded as an insect farm focused on the production of alternative proteins for inclusion in animal feed, the company pivoted its focus to the extraction of biomaterials from insects.

Insects produce high-value, novel materials that have wide-ranging applications across multiple industries including agrifood, pharmaceuticals, and electronics. And Insectta’s first technology in this field is the development of an efficient, sustainable, and cost-effective method for producing chitosan that surpasses all existing methods currently in use.

Typically derived from crustaceans, chitosan was first registered as an active ingredient in 1986. It has physicochemical properties such as bioadhesive, biocompatible, and biodegradable, making it highly suitable for applications in food, biodegradable plastics, and biomedical engineering. This potential is reflected in estimates by Grand View Research that project that chitosan will grow at a CAGR of 24.7 percent to 2027, (with North America emerging as a major market with a CAGR of 19.2 percent in terms of volume) to reach a value of $28.93 billion. 

However, the chemicals used in the current process for extracting chitosan make it highly unsustainable. But Insectta’s technology eliminates harsh chemicals from the process, setting a new industry standard for high-quality chitosan that is purer and traceable. Insectta also uses byproducts sourced from insect farms as the raw materials required for the extraction process – creating a circular economy within the insect farming industry that integrates a biorefinery process that produces chitosan, protein, and probiotics that are estimated to triple the final product value of larvae. 

“Insectta brings a unique technology for producing high-value materials from the insect industry’s waste,” said Nitza Kardish, Ph.D., CEO, Trendlines Agrifood Fund. “Our investment represents the fund’s commitment to investing in technologies developed and implemented in Singapore; and addressing food and other issues in a sustainable way, using innovative knowledge and a team with proven capabilities.”

“Insectta works in cooperation with research bodies in Singapore and has commercial relationships with various entities in East Asia,” continued Kardish. “The Company will operate from our AFIC incubator offices in the new complex we have established. We expect the commercialization of the company’s first products at the end of its first year of operation.”

As a highly hands-on investor, Insectta’s technology aligns with the mission of the Trendlines Agrifood Fund to improve global food systems through innovative technology-driven solutions.

“The Fund’s mission to improve food systems around the world aligns closely with Insectta’s,” said Ms. Chua Kai-Ning, co-founder, Insectta. “Trendlines’ focus on innovative, technology-driven solutions is exactly what we are looking for in a strategic partner. With their help, we aim to increase the value and diversify the products attained from food waste valorization.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.