Microalgae protein company, Brevel, has secured more than US$5 million in a seed extension up-round, bringing the total investment in the round to US$25 million. This investment injection allows it to accelerate its go-to-market strategy and develop microalgae proteins for multiple food and beverage applications.
The current expansion is based on exercises of warrants the investors were granted in the initial closing of the seed round in June 2023. The warrants were fully at the discretion of the investors who decided to increase their stake in the company.
NevaTeam Partners, Siddhi Capital, European Union’s EIC Fund, Good Protein Fund, The Food Tech Lab and PVS Investments are among the notable investors. In addition, the extension attracted multiple new investors who were granted access under the same terms.
Brevel CEO and co-founder, Yonatan Golan, said the company’s investors choose to reinvest, based on Brevel's progress following the last round.
“We are dedicated to delivering nutritious protein that can replace animal protein in formulations,” said Golan.
“Our vision as a climate food-tech startup is to reduce the carbon footprint to minimum by developing affordable, flavour-neutral functional microalgae protein at global scales for consumers. It ticks all the boxes: it’s good for the people, good for our customers, and good for the planet.”
Brevel’s recent successes include: completion of the first-of-a-kind commercial factory, successful scale-up of the technology to a commercial production volume of 5,000L, securing a commercial and joint-development agreement with The Central Bottling Company (CBC Group), and significant advancements of Brevel’s protein and polar lipid ingredient developments.
The funding will accelerate Brevel’s commercial activities, and allow the company to reach understandings with manufacturing JV partners for future production lines, alongside signing of additional off take agreements with customers in preparation for large-scale production.
“At NevaTeam Partners, we invest in visionary companies that redefine industries, and Brevel is a perfect example of bold innovation,” expresses Shai Levy, Partner of Nevateam Partners and board member of Brevel.
“The shareholders' decision to exercise their warrants is a strong vote of confidence in Brevel’s mission and execution. We believe their technology will play a pivotal role in shaping the future of alternative proteins, and we are excited to continue supporting their journey toward that.”
Fermentation sees the light
Brevel’s proprietary technology for cultivating microalgae combines light with sugar based fermentation in indoor bioreactors. This innovative platform enables the efficient production of nutrient-rich microalgae in large quantities, without the need for genetic modification.
Fermentation, traditionally limited to dark environments, produces microalgae at high yields and affordable costs, yet poor in light dependent nutrients, functionalities, and overall commercial value. Brevel is the first company to unite the two processes and take fermentation out of the dark, producing high quality, nutrient rich microalgae at high yields and low costs.
Brevel‘s advanced downstream process delivers a white, completely neutral-flavoured microalgae protein isolate powder. The powder can be seamlessly integrated into a broad spectrum of meat and dairy alternatives as a functional ingredient with excellent emulsifying, gelling, and foaming properties. It possesses remarkable nutritional value, with a full amino-acid profile. It also is highly functional, non-allergenic, non-GMO, and planet-friendly.
The key to cost parity
Microalgae’s natural array of nutrients includes protein, lipids, fibres, and bioactive antioxidants derived from photosynthesis. Every component of the biomass is a vital part of Brevel’s portfolio and business plan. “Our business model is similar to that of soy protein,” reveals Golan.
“The revenue must come from the co-products just as with soy and meat products. Our combined light and fermentation platform allows us to capitalise on all of the components of the microalgae and not just the protein portion.”
“While the fermentation process reduces costs, the light in our proprietary technology enables us to increase bottom-line results since we produce, in addition to the protein, functional oil with potent emulsifying properties, antioxidants as valuable food supplements, and nutritional fibres for food applications,” adds Golan.
“Through this wide portfolio we can achieve overall price parity for our superior protein as well as for each co-product. We plan to roll-out the next products in line this summer.”
