This is an article from our Catalyst Partner Invest-NL.
Entrepreneurs with innovative and impactful ideas or products that aim to scale up often encounter barriers. Overcoming these challenges requires more than just funding. That is why, in addition to investing, Invest-NL focuses on market development and the development of innovative financial products. By leveraging specific legal, technical, and market expertise, it addresses financing bottlenecks and makes propositions investable so that sustainable and innovative businesses and projects can accelerate the necessary societal transitions.
Investing in agrifood and the protein transition
Invest-NL prioritises agri-food as one of its key focus areas, aiming to make the protein transition financially viable and contribute to a sustainable, carbon-neutral food system. One example of how Invest-NL tackles financing bottlenecks is the recently published assessment framework on fermentation technology.
The protein transition is essential for building a sustainable and carbon-neutral food system. Fermentation technology is pivotal in delivering innovative protein solutions that reduce greenhouse gas emissions and resource consumption. However, investments remain limited due to high development costs, complex scaling processes, and strict regulatory frameworks.
What investors need to know about fermentation technologies
To overcome these barriers, Invest-NL and Wageningen University & Research have developed an assessment framework to help investors make well-informed decisions and drive growth in this sector.
Fermentation technology provides key ingredients for alternative protein products, such as plant-based dairy—a rapidly expanding submarket. The global plant-based dairy market was valued at $28 billion in 2023 and is projected to reach $91 billion by 2032.
A tool for investors
Despite their strong potential, startups in this sector face considerable investment challenges. Investors are often discouraged by high upfront capital requirements, complex and lengthy scaling processes, commercial challenges, and stringent regulations. These hurdles make it difficult for promising startups to become fully established businesses.
The assessment framework addresses these challenges by providing investors with insights into the feasibility and risks of various fermentation technologies, enabling them to make better-informed decisions. By doing so, we aim to make fermentation technology more investable.
Building a co-investor network
Alongside the framework, Invest-NL is building a co-investor network. In November, we have organised a roundtable discussion with key Dutch investors to test the initial version of the framework and gather insights.
Ahead of F&A Next, we will take the next step by hosting an exclusive investor dinner on Tuesday evening, 20 May, focusing on international investors. Here, we will present the framework, foster new connections, and explore opportunities for collaborative investments in fermentation technology. By promoting collaboration and knowledge sharing, we aim to accelerate investments in fermentation and support innovative startups as they scale up.
Accelerating investments together
Invest-NL believes that removing financial barriers in the alternative protein market is key to driving the global protein transition. The assessment framework is a first step, but we want to refine it with the ecosystem.
Invest-NL invites investors, startups, and other experts to use the framework and share their feedback. Is it helpful? Are there elements that need improvement? Your insights will help us ensure the framework aligns with real-world investment needs. If you’re interested in joining the co-investor network or collaborating to strengthen investment in fermentation, we’d love to connect. Download the assessment framework here and get in touch to shape the future of protein together.
Want to know more about Invest-NL’s investor dinner? Get in touch with Michiel Strijland (Business Develop Manager at Invest-NL: michiel.strijland@invest-nl.nl)
