What is molecular farming and why are VCs so into it? Here are the answers
Investment into alternative protein startups has skyrocketed over the last three years — in 2021 global funding reached $5.7bn, more than double the amount raised two years before. Foodtech VCs have been heavily investing into precision fermentation startups and are now looking for the next technological frontier within a crowded space.
Enter molecular farming. Melina Sánchez Montañés, investment principal and VP of impact at Berlin-based VC firm AENU, describes it as “the newest of the technologies in the food sector”.
Molecular farming basically consists of engineering plants to make animal proteins. For example, the technology can be used to make dairy proteins that are identical to those found in cow’s milk — in essence, making dairy products by milking a plant instead of a cow.
Investor interest has led molecular farming startups to raise oversubscribed rounds over the past 18 months, but the technology is still facing a number of challenges including scaling up and navigating regulations.
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