Cell-based food technology startup TurtleTree has raised $30 million in a round led by VERSO Capital, the company announced on Monday.
Launched in 2019, the Singapore-based company, which houses its U.S. operations in Sacramento, California, has thus far been focused on synthetically reproducing the individual proteins found in human breast milk, potentially removing the need for a lactating mother. By making these individual proteins into ingredients for commercial use, the idea is to democratize access to essential nutrients that can support immune system function, gut health, and cognitive development. TurtleTree’s total investment now stands at over $40 million.
With the new injection of finances, TurtleTree is set to continue scaling production of its first commercial product, human lactoferrin, which was announced in June. In addition to opening a new production facility in Sacramento in September, the company announced this year a partnership with Solar Biotech to provide assistance in bioprocess design, development and optimization, and also signed with JSBiosciences to provide cell culture media. Meanwhile, TurtleTree Scientific, a new division launched in June, is dedicated to working with cell-based meat brands to produce food grade growth factors in a cost efficient manner.
According to the release, the new funds will also be used for “technology development and talent acquisition.”
“We are incredibly touched by the degree of faith all our investors have placed in TurtleTree and our unique vision of food,” said TurtleTree’s CEO, Fengru Lin, in a press release. “Amplified by the relentless backing of parties like VERSO Capital, the Series A funds will allow us to scale up our processes and come a huge step closer to creating a new era of sustainable nutrition.”
Max Rye, chief strategy officer at TurtleTree, added: “The funding received has truly opened up a new world of possibility. We can now set our sights on turning ambitions to reality, starting with our U.S.-based expansion plans and then moving on to the development and manufacture of our first consumer-ready products.”
VERSO’s new investment represents a deepening of its relationship with TurtleTree, which it originally backed in a $6.2 million seed funding round in December 2020. The group’s portfolio of tech-driven, better-for-you CPG investments also includes Impossible Foods, This Isn’t Meat, Eat Just and Nitro Beverage. Over the past four years, VERSO has invested over $245 million across its portfolio.
“At VERSO, we highly value TurtleTree’s unique positioning in the industry and its farsighted mission of creating a sustainable and cruelty-free food system,” said Julien Machot, Managing Partner at VERSO Capital, in a press release. “After developing a deep understanding of the company and its team, we are confident in TurtleTree’s potential as a cell-based technology platform that will transform the food industry. VERSO Capital will share its wealth of knowledge in corporate finance and operations to help the company validate its unit economics and the overall business plan with its very first key accounts.”
Even as the space has become more crowded, investors’ appetite for alternative proteins hasn’t slowed down. According to data from the Good Food Institute (GFI), as of October alternative protein companies have already generated $3.4 billion in funding through September, putting the segment on track to meet or surpass last year’s numbers. Fermentation-based startups, such as Nature’s Fund ($350 million in July) and Perfect Day ($350 million in September), have been notable standouts, while Chilean plant-based dairy and meat brand NotCo raised $235 million in July.