In this podcast series, co-produced by vegconomist, Alex Shandrovsky interviews investors about benchmarks for funding Alt Proteins in 2024 and uncovers the investment playbooks of successful Climate Tech CEOs and Leading VCs.
Podcast Host Alex Shandrovksy is a strategic advisor to numerous global food tech accelerators and companies, including alternative proteins and cellular agriculture leaders. His focus is on investor relations and post-raise scale for agrifood tech companies.
Episode 12: George Zheleznyi of Cultimate
In this episode, Alex talks to George, co-founder and CEO of Cultimate Foods, a Berlin based biotechnology startup developing a cultivated fat ingredient for plant based meat aiming to replicate the taste and texture of traditional animal meat. George discusses the importance of having strong Letters of Intent (LOIs), supported by Material Transfer Agreements (MTAs) and sample deliveries in closing their investment rounds.
Key Facts Cultimate Foods:
Goal: To improve the taste and texture of plant-based meats by offering a high-quality fat alternative that can replace expensive flavoring solutions.
Recently closed €2.3 million seed round.
Lead investor: HTGF
Link to Spotify:
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Alex’s Top Findings:
Preparedness: Having a well-organized data room, including strong LOIs, MTA agreements, and a clear regulatory strategy, was key. This preparation ensured that they could answer investors’ questions and provide all necessary documentation efficiently.
Strong Relationships with Investors: George mentioned that the relationship with their lead investor started during the pre-seed round. Even though they were not ready for investment at that time, they kept the relationship alive and returned when they were ready for the seed round. They maintained communication and came back to the same investor, showing progress and readiness, which eventually led to securing the investment.
Letters of Intent (LOIs): Having strong LOIs, especially those supported by Material Transfer Agreements (MTAs) and sample deliveries, was crucial. These agreements with potential customers demonstrated that there was real interest and intent to purchase the product, which reassured investors.
Regulatory Roadmap: Investors are concerned about the regulatory hurdles in the food tech space, particularly for cultivated meat products. George mentioned that they had already started working with regulatory consultants and shared their roadmap for submitting regulatory dossiers in multiple countries. This reassured investors that the company was aware of and prepared for the regulatory challenges ahead.
Reference Calls: George facilitated reference calls between investors and potential customers. This direct communication allowed investors to validate the product’s demand and its value proposition directly from industry stakeholders, reassuring investors about the company’s market potential.
Meeting High Standards: George noted that the requirements for startups have increased, particularly in the cultivated meat space. They had to present a level of market traction and technological development that might be expected of a Series A or B startup, even at the seed stage. Understanding and meeting these elevated expectations was crucial for closing the round.
The link to the full series is here.
