Venture Capital: Impossible Foods Raises $200M; Vegan Pork On The Way
2020 has been a year of “explosive growth” for the company.
Impossible Foods, the plant-based meat startup, announced Thursday its Series G round raise of $200 million. The investment round was led by new investor Coatue Management LLC. It saw participation by another new investor XN Capital, as well as existing investors Mirae Asset Global Investments and Temasek. While Coatue and XN are both hedge funds, Coatue is renowned for its affinity for tech investments. (Yahoo Finance)
Huge investor interest
This latest funding follows on the heels of Impossible’s highly-successful, monster round in mid-March which raised $500 million.
Investors were quick to see the potential for the meat substitute company to step into the void caused by the pandemic in meat supply chains. As restaurants and foodservice shut down, their meat demand shifted to supermarket retail outlets and groceries. Consumers stopped eating out and instead were cooking at home amidst nation-wide lockdowns.
Even so, meat supplies were short and consumers lapped up the alternative meat offerings from Impossible.
According to data from Nielsen, sales of plant-based meat alternatives grew nearly 25% from July 11, 2019, to July 11, 2020. The products clocked about $601.4 million in sales during that period.
“Our investors believe in our mission to transform the global food system — and they recognize an extraordinary economic opportunity,” said Dr. Patrick O. Brown, M.D., Ph.D., CEO and Founder of Impossible Foods, in a statement.
“Grill burgers. Not the planet.”
That’s the company’s advice to consumers on its website.
Pat Brown, the founder and CEO says Impossible’s products are not superfoods – instead they are a better meat substitute.
“It’s intended to be a product that is healthier for the consumer than a burger made from a cow [and] better for the planet than a burger made from a cow,” he told CNBC last month. “And for many consumers, more delicious.”
“The use of animals to make food is the most destructive technology on Earth, a leading driver of climate change and the primary cause of a catastrophic global collapse of wildlife populations and biodiversity,” said Dr. Brown. “Impossible Foods’ mission is to replace that archaic system by making the most delicious, nutritious, and sustainable meats in the world, directly from plants.”
After burgers, sausages
Burgers – the company’s flagship product
The company followed up its blockbuster Impossible Burger with a launch of the Impossible Sausage at the 2020 Consumer Electronics Show in January. The meatless sausage is now available at more than 22,000 locations within six months of the debut.
In June, the company launched its eCommerce site, promising two-day delivery across the country.
“2020 has been a year of explosive growth for us, but this is just the beginning,” said David Lee, Chief Financial Officer for Impossible Foods. “We plan to create plant-based upgrades for every major category of animal-derived food products. This investment will allow us to continue to develop and commercialize the technology that will enable that transformation.”
Money from the new funding will go towards the development of next-generation, plant-based products. These include Impossible™ Pork Made From Plants, milk, steak, and other foods.
Impossible will also use the funding to expand R&D, scaleup its manufacturing facilities, expand its retail footprint, and grow in international geographies.
Related Story: Meat Substitutes Make Their Mark Amidst the COVID Crisis
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