Entobel, Singapore-based biotech company producing insect-based ingredients from BSF, completed US$30 million fundraise, with US$25 million from Mekong Enterprise Fund IV and US$5 million from Dragon Capital.
Entobel announced that the company completed its US$30 million fundraise, with US$25 million from Mekong Enterprise Fund IV and US$5 million from Dragon Capital.
Entobel is a biotech company producing insect-based ingredients from Black Soldier Flies for various industries including the animal feed, pet food, and fertilizer industry. Currently, Entobel has 3 main products, which are insect meal, insect oil, and organic fertilizer.
In early 2019, Entobel constructed one of the largest insect production sites in the world in Dong Nai province, Vietnam with an annual capacity of 1,000 tons of insect meal. Looking forward, Entobel’s next plant will be operational by 2023 and will respond to rising global demand while supporting the reduction of our global food chain’s environmental footprint.
Entobel production site location strategy provides Entobel with a significant and sustainable competitive advantage thanks to the tropical climate condition, abundant sources of feedstock from Vietnam’s agriculture activities and F&B production, and the growing aquaculture market being the main application of insect protein ingredients.
READY TO SCALE UP PRODUCTION
After 8 years, Entobel has done extensive R&D to perfect the technology to convert food by-products to insect protein on a large scale with capital efficient technology. Having achieved these technological breakthroughs, the company is now ready to scale up its production. Entobel’s vision is to become a leading insect protein producer in the world.
Gaetan Crielaard and Alexandre de Caters, Co-Founders of Entobel, said: “We are proud to partner with Mekong Capital and Dragon Capital to build a world class plant before replicating the model globally. We are convinced our capital efficient and robust technology is the right approach to massive scaling up.
With our growing blue chip customer base as well as world class industrial partnerships for breakthrough R&D activities including new product developments, we ensure our market relevance and competitiveness in the long run”.
Sjoerd Zwinkels, Mekong Capital’s Deal Leader for Entobel, said: “We are very excited to partner with Entobel to achieve the exciting vision of becoming to the leading insect protein producer in the world. The Entobel’s team is solving one of the big problems in the world by using insects to create a sustainable protein, which will reduce the environmental footprint of our global food chain, while making the food value chain safer and more sustainable. This is a true circular economy as they take by-products; convert them to protein, oil and organic fertilizer. There is virtually no waste.
We believe in the founders, Gaetan and Alexandre, who showed so much grit and perseverance to build one of the largest insect protein production companies in the world today, starting from a small farm in the Mekong Delta to a large industrial facility in Dong Nai. They have proven that insect derived ingredients can be produced on an industrial scale with high quality and being cost-effective compared to fishmeal.”
Duong Do Quyen, Director, Head of Principal Investments of Dragon Capital commented: “Fishmeal is an unsustainable protein source and the demand for it is rising globally. We saw great potential in Entobel’s profitable and sustainable premium insect-based ingredients for various industries. Entobel founders’ passion, in-depth understanding of the business, and considerable first-hand experience in the industry further reinforce our confidence that this model can be rolled out on an industrial scale. The investment in Entobel fits well within Dragon Capital’s responsible investment principles, as insect protein offers sustainable, high quality and cost-effective alternatives to conventional animal protein, oil and fertilizer sources, especially in aquafeeds.”