Unpacking the alt protein space through the VC lens

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Not too long ago, everyone from Hollywood superstar Leonardo DiCaprio and NBA icons Kyrie Irving and Chris Paul to business magnates Bill Gates and ex-McDonald’s CEO Don Thompson was scurrying to invest in the alt protein space, which promised to upend the world’s US$1 trillion meat industry.

The demand for alt protein startups among VCs was so hot that Impossible Foods raised US$183 million before the plant-based protein firm had sold even a single burger. The once-burgeoning sector was also boosted by the incredibly successful IPO of Beyond Meat – the poster child of the industry – in 2019.

But fast forward a few years and skepticism around the healthfulness of alt protein has been growing. Beyond Meat’s shares have fallen 93% since hitting a record high shortly after its public listing, as it turns out. The industry promised a lot but has so far delivered very little.

However, in today’s featured piece, Jayesh Parekh, managing partner at alt protein-focused VC firm Good Startup, is adamant that the sector’s trial by fire is just a “six- to 12-month blip,” drawing similarities between the industry’s ongoing difficulties and the dot-com bubble of the late 1990s.

He also goes on to share his optimism regarding cell-based meat and why he believes the alt-food industry will be worth up to US$200 billion in this decade, while spelling out the three factors that’ll play a crucial role in venture funding reaching normal levels again in Southeast Asia.

Today we look at:

• The potential of the alt protein space, according to Good Startup
• Oh Baby Games’ latest crypto and gaming concoction
• Other newsy highlights such as TikTok’s boss to appear before US lawmakers as app ban looms

— Shravanth

P.S.: If you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

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Image credit: Timmy Loen

While alt-protein firms have spent the best part of the last decade looking to convert meat eaters, showcasing not only the environmental and animal welfare advantages but also the potential health benefits of its products, plant-based meat’s most reliable enthusiasts continue to be vegans and vegetarians.

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