Insect protein company receives investment

A Lithuanian company developing nutritious insect protein products has raised €3 million (around $4.4 million) in seed funding. Divaks produces ingredients using yellow mealworm, such as whole insect powder and insect fibre powder. The worms represent a protein source that contains all essential amino acids, vitamins and minerals, and the ingredients are intended to be used in manufactured food products to make them healthier, in a sustainable way.

Kęstutis Lipnickas, Divaks’ Co-Founder and CEO, said: “Yellow mealworm is an exceptional protein source, combining the nutritional quality of beef with the sustainability credentials of many plant-based alternatives. Our focus from day one has been on using these insects to create added value ingredients, solutions and specialties for the food industry. With our unique, vertically integrated technology, we can provide high-quality insect protein products that are tailored to the demands of both clients and consumers.”

Having had one prior round of seed funding, the company will be using the investment to launch a pilot manufacturing facility for its products. The money will also be used to gain Novel Food authorisation with the European Commission. The company has also signed a Novel Food Dossier licensing agreement with another insect company, Protix, and plans to produce more in the future so that its products are considered food-grade.

“We’re delighted to have raised the funds we need to take our project to the next level,” Lipnickas said. “The €3 million will allow us to continue our company’s growth while building an insect industry hub together with local and international academic institutions, partners and suppliers.”

Divaks is now aiming to raise €50 million (roughly $7.3 million) in a Series A funding round and ultimately wants to use this investment to develop an automated, vertically integrated insect rearing and processing facility, constructing it on a plot of land that has already been purchased. It hopes to open this factory in mid-2024.

Audrius Grušnis, Divaks’ Co-Founder and Chairman of the Board, said: “Amid significant concern around sustainability and the disruption to food supply chains, it’s clear that insect protein has vast scope for growth. Along with renewable energy and electric cars, we see it as one of the industries with the greatest potential over the coming 10 to 15 years. We’re building a vertically integrated insect protein business that can meet demand by delivering a wide array of high-quality, added-value ingredients.”

Lipnickas said: “Insect meal will become an important commodity in the very near future and we see particularly high potential in the food industry. While the quality requirements and complexity are higher than in the feed industry, the possible returns are higher, too. Many of those in our core team have backgrounds in the food industry, giving us the expertise we need to play a vital role in this fast-growing sector.”

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