Aleph Farms, known for its lab-grown beef steak, is facing a major financial crisis. The Israel-based company is seeking US$25 million in funding but expects to secure only US$10 million from existing investors.

Its valuation has dropped to US$80 million to US$100 million from US$300 million in 2021.

Millennium Food-Tech, a shareholder, cut its holdings’ value by 75% due to low cash reserves. Aleph Farms has also laid off staff, reducing its workforce from 140 to 100 by mid-2024.

The company’s struggles reflect a broader downturn in food tech. Israel’s food tech investments fell to US$134 million in 2024 from US$970 million in 2021.

Global cultured meat funding dropped by 78% between 2022 and 2023, with high production costs and commercialization challenges.

Though Aleph Farms received Israel’s Ministry of Health approval in early 2024, rapid expansion after its 2021 funding round led to high cash burn and scaling difficulties.

Now, the company is shifting its strategy to streamline production, cut costs, and prove product demand.