Why did we invest in Entocycle?

January 18, 2023

Climentum leads 🇬🇧 Entocycle’s €5m Series A to scale insect farming to recycle urban food waste and solve the global protein shortage.

Entocycle’s Black-Soldier Flies production facility in London

Let’s set the scene.

Black soldier fly (BSF) farming is a method of producing protein that has been gaining attention as a potential solution to the global protein shortage crisis.

BSF larvae are able to convert organic waste into protein-rich animal feed, making them an efficient and sustainable source of protein. Additionally, BSF farming requires less land and water than traditional livestock farming, which can help to alleviate some of the environmental impacts of meat production.

Furthermore, BSF larvae can be raised on a wide range of organic materials, including food waste, agricultural waste, and even human waste, which can help to reduce the amount of waste that ends up in landfills.

One-third of all food produced is lost or wasted globally

Overall, BSF farming has the potential to provide a sustainable and efficient source of protein that could help to address the global protein shortage crisis.

Is this the point of inflection for insect farming?

The global insect protein market is showing no signs of slowing down, with demand for insect protein forecast to reach 3 million tonnes and be worth $9.46bn by 2030. According to another recent report, the global black soldier fly market specifically is expected to grow by 30.5% CAGR from 2022 to reach $3.96b by 2033.

BSF breeding modules to accelerate production

Entocycle is a UK-based Y Combinator startup supplying high-quality insect farming technology and solutions. Founded in 2016 to accelerate a global shift to insects as a sustainable protein source in food and feed.

Entocycle’s full farm design and build service enable large-scale food producers and waste management companies to convert organic waste into high-value insect proteins, fats and fertilizers.

Entocycle’s full farm design

Entocyle has won numerous awards and received notable press coverage from The New York Times, Forbes, The Guardian, BBC and Netflix as a leading voice in a rapidly-growing industry.

We finally have a solution to decentralize and localize production, solve the global feed shortage and accelerate the transition towards low-carbon alternative proteins, all at once.

At Climentum, we’re proud to lead this round, as there’s no better insect breeding technology on the market. Entocycle has developed a full stack of breeding solutions for small farmers and full-scale waste managers, which would take years and millions of dollars to replicate.

More about the product:

Entosight™ Neo

Entocycle’s flagship product, the Entosight™ Neo, is a software and hardware package based upon an optical sensor that monitors and collects data on the health and productivity of a black soldier fly colony. The Entosight™ Neo reduces the need for manual human processes such as weighing larvae, multi-step handling and inaccurate counting to result in higher-feed conversion rates, lower mortality and larger insects on farms.

The company has also developed a turn-key modular fly cage, a highly efficient breeding system and offers a full BSF farm design, commission and build service to new entrants to the insect industry, with growing interest from large-scale food producers looking to secure protein-supply or waste management companies looking to upcycle organic waste into higher-value products such as protein or lipids.

Will this funding round create a success story?

The new funding confirms Entocycle as a leading global player in the rapidly-growing insect industry as it looks to place its cutting-edge technology at the heart of large-scale insect farms worldwide.

Alongside Climentum Capital, the Series A funding includes investment from Lowercarbon Capital, Teampact Ventures, ACE & Company, and prominent world-class athletes such as Antoine Dupont (World Rugby player of the year in 2021), Nikola Karabatic (World’s best handball player and Olympic champion with France in 2008, 2012 and 2021), James Haskell (former England rugby international) and Antoine Brizard (Volleyball Olympic Champion with France in 2021).

Antoine Dupont demonstrating the new appetite from Top Athletes for Climate Engagement (Image: MARTIN BUREAU/AFP via Getty Images)

This investment is a boost for the climate and natural world as the growth of alternative proteins, such as insects, is considered to be a key driver in reducing environmental issues, including deforestation linked to soy, overfishing, and pollution related to agricultural waste disposal into our rivers and seas as well as improving food security.

Let’s raise a little buzz about insect farming! 🪰

Team Climentum