DeNova
DeNova is a Canada-based, fully integrated single cell protein producer converting methane to methanol as feedstock for methanotrophic bacteria production.
Invested Capital: CAD 3.5M
Invested Date: November 2023
Round: Series A Extended
Thesis: Nutrition
Target Opportunity
In 2022, global aquaculture production of animal species at 94.4 million tonnes surpassed capture production estimated at 91 million tonnes for the first time in history. Within aquaculture, the share of fed aquaculture in total farmed animal species production increased from 60.3% in 2000 to 72.4% in 2020 and to 73.1% in 2022. In contrast, global aquafeed production volume reached 52.09 million metric tonnes in 2023 and experienced the first decline in feed tonnage in recent memory (4.43% YoY decrease).
To meet the expected 109 million aquaculture production by 2030, the market needs to diversify the protein-rich ingredients basket to meet ingredient demand sustainably.
Investment Thesis
- We are extremely impressed by the founding team and also love to see an all-female founding team in this specific domain which is largely male led
- Emphasis on cost competitiveness to sell at comparative or cheaper price points compared to commodity pricing
- Ability to secure reliable long-term access to input via strategic partnership
- Access to non-dilutive government funds unique to Canadian startup ecosystem
- Unique single-cell protein strain with efficient productivity
Our Value-Add
- Business development and sales connect to major feed producers
- Business development to co-locate with input supply partners in Norway and Asia
- Find market expertise for team hires and introduce new board member candidates
- Introduce new investors
- Provide strategic and general advice
Things We Learned
- Canada has world-leading non-dilutive support programs for innovative businesses and is a great place to start an ambitious venture
- Methanol is likely the most competitive carbon source for the production of single-cell proteins
- Very few ‘alternative protein ingredients’ are indeed scaling up and gaining industry adoption. High cost structures, volatility of supply, and lack of scale are among the main reasons for feed companies not to adopt new ingredients
