Target Information

NextProtein, founded in 2015 by Syrine Chaalala and Mohamed Gastli, specializes in the cultivation of insect larvae. The company transforms these larvae into components primarily for animal feed, as well as organic fertilizers for agriculture. By utilizing insect proteins, nextProtein aims to address major societal challenges such as demographic growth, food waste, and environmental impacts.

With its innovative approach, nextProtein is positioned to provide sustainable solutions amidst growing resource shortages. The company is targeting major players in aquaculture and animal feed sectors with its eco-friendly protein alternatives.

Industry Overview in France

The industry for sustainable protein sources in France is experiencing rapid growth, fueled by heightened awareness of environmental issues and the need for alternative food sources. The French government has been promoting sustainable practices, aligning with global trends aimed at reducing the carbon footprint associated with traditional livestock farming.

Insects are increasingly recognized as a viable and efficient source of protein, with several regulations in place supporting their use in animal feed. This shift is a direct response to the challenges posed by climate change and food security, driving investment and innovation in the industry.

The COVID-19 pandemic further emphasizes the importance of resilient supply chains in the food sector, making insect farming an attractive proposition. As consumer demand shifts towards sustainable and responsible food production methods, companies like nextProtein are well-placed to capitalize on this trend.

Overall, the sustainable protein market in France is poised for significant expansion, highlighting the crucial intersection of environmental sustainability, technology, and food security.

Rationale Behind the Deal

RAISE Impact's investment in nextProtein demonstrates a commitment to supporting companies that contribute positively to societal and environmental issues. Despite economic disruptions caused by the COVID-19 pandemic, RAISE Impact remains convinced of the resilience and importance of impact-driven enterprises.

This investment aligns strategically with macro trends in sustainability and food tech, aiming to address ongoing challenges in food production and waste. With a financial injection of €10.2 million from various co-investors, nextProtein will enhance its capacity for industrial-scale production, furthering its mission for sustainable resource management.

Investor Information

RAISE Impact is an impact investment structure under the RAISE Group, founded by Clara Gaymard and Gonzague de Blignières. The France 2i fund, initially launched with support from the Fondation de France in June 2019, is now expanding its reach to new investors with a targeted fund size of €200 million.

RAISE Impact focuses on ambitious projects that may lead to significant changes in lifestyles, production, and consumption patterns. Its unique financial model blends profitability with social responsibility, as 50% of the investment teams' earnings are allocated to a dedicated foundation, RAISESHERPAS, aimed at promoting startups.

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This investment appears to be a strong move for RAISE Impact, as nextProtein embodies the sustainability model that aligns with current global needs. The market potential for insect proteins is rapidly expanding, and nextProtein's established position therein, coupled with experienced leadership, makes it a compelling investment opportunity.

The COVID-19 pandemic has underscored the fragility of traditional food supply chains, making businesses focusing on resilience and sustainability particularly appealing. RAISE Impact's choice to invest in nextProtein signifies confidence in both the company’s capabilities and the broader shift towards sustainable agriculture.

Furthermore, the collaborative network formed with co-investors like Blue Oceans Partners will enhance nextProtein’s growth prospects. This partnership model is likely to yield greater innovation and efficiencies as the company scales up its operations.

Overall, RAISE Impact's investment in nextProtein stands to not only yield financial returns but also contribute to systemic changes in the food production sector. This aligns well with the growing consumer interest in sustainable food sources, positioning nextProtein as a frontrunner in this evolving industry.

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