Aqua Cultured Foods, a start-up in the United States that focuses on producing plant-based seafood, has raised $5.5 million in its most recent seed funding round. This brings the company’s total amount of funds raised to $7.6 million.
The company stated that the investment will be utilized to prepare its new facility, expand production capacity, and ultimately launch its products in the market.
In its efforts to distribute its products, the Chicago-based company intends to expand its team and form additional partnerships with restaurant and foodservice outlets later this year.
Aqua Cultured Foods is utilizing its unique “proprietary mycoprotein fermentation process” to produce various seafood alternatives, including calamari, shrimp, scallops, and fish fillets. The company also creates minced fillings for dumplings, ravioli, and sushi rolls to replicate the taste and texture of seafood.
Stray Dog, a US-based venture capital fund that focuses on investments in alternative-protein, led the fundraising round, acknowledging Aqua’s “immense potential.”
Anne Palermo, Aqua CEO, said of the investment: “We appreciate having mission-aligned partners that offer strong strategic value for the next phase of our growth, which will involve building up the business and brand.
“Being good stewards of investor capital is important to us, so along with hitting milestones earlier than expected, we are benefiting from government programmes, academic resources, and other advantages to get to market quickly.”
Johnny Ream, Stray Dog Capital partner, said the firm was looking for companies “leveraging unique technologies and approaches that drive a more sustainable future”. He added, “The work Aqua is doing with alt-seafood has immense potential to drive both human and planetary benefits in a massive $100bn+ global market.”
The business, co-founded by Anne Palermo and Brittany Chibe, raised $2.1 million in a pre-seed round in 2021 from a group of global investors. These investors included early-stage venture-capital firm Supply Change Capital from Los Angeles, peer Aera VC from New Zealand, and Sustainable Food Ventures located in North Carolina.
During an interview, CEO Palermo explained the fermented technology that the company utilizes, stating that they create a nutrient-rich broth which is then inoculated with their unique strain of fungi spores. The environment, temperature, acidity, and nutrients are carefully controlled to facilitate the growth and development of the fungi.
“Basically, it’s a very new and different way of producing mushrooms. Rather than growing them on a solid substrate such as coconut husks or sawdust, we are growing protein in a liquid broth.”
In the latest funding round, CJ Foods, a manufacturer and distributor of Asian foods, also participated.