Introduction to the InsectBioTech Group
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This document summarizes a startup company called InsectBiotech Group that is turning food waste in Spain into sustainable animal feed and fertilizer products using black soldier fly larvae. The startup is raising 1.5 million euros to build a pilot facility and hire employees to operate it. The funding will allow the company to lay the foundations to eventually produce 150,000 metric tons of insect larvae per year and reduce agricultural waste.
Introduction to the InsectBioTech Group
- 1. We are a purpose driven startup in Spain, turning food waste into sustainable products We transform agricultural waste into protein, oils, fertiliser and materials CONFIDENTIAL: NOT FOR DISTRIBUTION March 2023
- 2. Funding and Uses InsectBiotech Group is raising €1,500,000 for the first round of external funding. 〉 To date, the founders have funded start-up costs and feed mix trials with the Danish Technological Institute. 〉 The funding will allow IBG to employ a team to operate the “Growbox”, and lay the foundations for the 10,000m2 “Scaled Facility”. 〉 The post funding round money valuation of IBG is €15m, holding 10% of the outstanding shares. 〉 We will be seeking additional €35M in financing following a successful Pilot phase in 2024. 〉 Each investment round will potentially source; EU grants, investor funds, bonds, debt, leasing equipment, and initial public offering. Capex € 319,698 Pilot Operations € 125,432 Human Resources € 508,248 General Overheads € 147,294 10k Facility Prep Costs € 300,000 Contingency € 100,000 Use of Funds
- 3. Introducing the InsectBiotech Group We’re a purpose-driven startup company, turning olive oil milling agricultural waste in Spain into animal protein, using black soldier fly larvae (BSFL). We’re founded by experienced food industry and entrepreneurial executives. 〉 BSLF is an ideal bio converter of agricultural waste resulting in a high protein and nutritionally balanced alternative to fish meal and soy meal. This becomes an important sustainable feed ingredient for animals. 〉 From the process comes important valorised products, including fertiliser, oils and materials inputs – “One fly makes four products”. Inputs Olive oil production byproducts and other agricultural waste Activity Production of high quality animal feed for pets, livestock and aquaculture Impacts Huge reduction of land use and ocean footprint Outcomes An EU made, net positive feedstock that helps protect the planet. A 100% circular economy product.
- 4. IBG will help transform the unsustainable animal feed sector The animal feed sector is ripe for disruption. It’s based on completely unsustainable inputs. According to the European Commission’s Directorate-General for Health and Food Safety; 〉 Roughly 5 million EU farmers raise animals for food production with a value of about EUR 130 billion. 〉 In addition, the 70 million pet owning households in the EU buy roughly 10 million tons of feed for their pets. 〉 Every year, they need approximately 450 million tons of feed for their animals: • Current inputs for EU feed is comprised of primarily soy from Brazil and fish from the oceans. • In 2020, Brazilian soy production on recently deforested land was linked to 103 million tonnes of gross CO2 emissions. • That’s 11% of total land use change in Brazil. Such unsustainable imports will soon not be allowed in the EU. 〉 37 percent, or 31.5 million tons of the world’s ocean fish catch is ground up for animal feed: • Ninety percent of that catch is turned into fish meal or fish oil, most of which is used as agricultural and aquacultural feed. 〉 That needs to change. Our mission is to enable that change, using sustainable inputs to create net positive feed.
- 5. What’s the Value Proposition? Products 〉 High quality protein: High-quality yet low-impact insect protein for pet food and aquaculture. IBG’s target is to produce 150,000 metric tonnes of larvae equating to 39,000 tonnes of dry insect meal. 〉 Sustainable fertiliser: A sustainable circular alternative to fossil fuel fertiliser: Our frass co-product is a highly effective, cost-effective and sustainable organic fertiliser. We expect to be producing between 110,000 and 170,000 metric tonnes of fertiliser per annum by 2030. 〉 Innovating co-products: Black Soldier Fly oil is a valuable source of lauric acid, an essential chemical, and is used in animal feed enhancement and pharmaceuticals. Chitin is a next generation fly exo-skeleton based organic material. 〉 Data-lead lean operational model: IBG will be investing in data models to improve bioconversion and nutritional profile of our insect meal product and maximise our operational processes. This leads to cost efficiency gains, optimal nutritional products, and best practice operational processes. 〉 Scientific advancement: Insect rearing is still in the early stages of mass rearing. IBG will be heavily investing in practical research helping us develop new products and gain a competitive advantage.
- 6. What’s the Value Proposition? Outcomes 〉 Driving market transformation for insect biotech: Our ambitious plans will add scale to a nascent market for sustainable insect biotech products, enabling new market entrants to join us, and grow the volume of products available. 〉 Tackling climate change: We will reduce emissions from 6 million tonnes of olive oil waste by bio-converting it to animal feed and fertiliser via Black Soldier Flies. This will have a significant positive climate impact. 〉 Rural jobs: Siting factories next to olive oil mills in rural Spain. We will have a powerful rural economic enabler footprint. We will help bring skilled and well-paid jobs back to important rural areas of Spain. 〉 Reducing deforestation: Our black soldier fly based insect protein will reduce the need for imported soy with a serious land use footprint. 〉 Restoring the oceans: Our products will hugely reduce the need for trash fish to be used in aquaculture in Europe and world-wide. 〉 Helping customers reduce their environmental footprints: Our products will assist Fast-moving consumer goods (FMCG) brands, livestock suppliers, retailers and others to reduce the embedded environmental emissions in their products. Our products will also help them reduce the costs of expensive due diligence requirements for feedstock purchased from high risk areas and countries.
- 7. Where and when? 〉 Using agricultural feedstock from Spain, which includes olive waste, and other ingredients, we’ll be beginning our journey in Andalucia, Spain. 〉 This is where feedstock quantities are plentiful, e.g olive pomace, brewing, baking and citrus waste. 〉 In preventing the oxidation or burning of pomace, we’ll have a significant positive CO2 and food waste emissions impact by 2025. 〉 We’ll be bringing investment and skilled jobs to a rural area of Andalucia, providing our customers with deforestation free feed for animals that doesn’t have an ocean trashing footprint. 〉 Local content: Working with local olive pomace suppliers, IBG will source this waste and provide an additional revenue stream to suppliers. ANDALUCIA Jaen 4.8 million tonnes of olive pomace waste per annum
- 8. Regenerating rural communities: Well paid local jobs, investment in local R&D/science and research 1. Circular Manufacturing 2. Regeneration 3. Sustainable inputs Displacing unsustainable inputs: Soy, fishmeal, and fossil fuel fertiliser replaced by EU-made BSF protein, frass and other co-products Manufacturing sustainable 21st century products: Low impact, high efficacy/output protein, fertilizer, oils and materials Our Triple Play Approach
- 9. Stage 2 - Pilot & Preparation ✔Constructing small scale facility (growbox) ✔Optimising feed mix ✔Validating bio-conversions ✔Testing mechanical & enzyme pre-treatment ✔€1.5M Investment Stage 3 - 10,000 tonnes larvae ✔10,000m2 facility built on leased land adjacent to OP mill ✔Construction starts June 24 and completes Sept 25 ✔Depreciation 25 years ✔Generating revenues from Jan 2026 ✔€9M Revenue per annum ✔10,000 tonnes BSFL ✔Total investment €35M Stage 1 DTI Testing ✔Danish Technology Institute ✔Olive pomace mixes ✔Pre-treatment ✔ Bioconversions The path to €500M enterprise value by 2030 Feb to April 2023 Stage 4 -150,000 tonnes larvae ✔3 to 5 facilities across Andalucia ✔Converting 600,000 tonnes of waste ✔€116M Revenue per annum ✔150,000 tonnes BSFL ✔EBITDA €48.4M at 41% ✔Total investment €275- 300M from EU Funds, debt, regional development funds and equity June 2024 to Sept 2025 July 2023 to Dec 2024 Jan 2025 to Dec 2030
- 10. The customers 〉 Given we understand the emerging demand, know many of the key players and already work with them, we believe Insect Biotech Group has a significant advantage in promoting our products, as a solution to both protein needs and significant environmental challenges. 〉 Customers who will buy our protein and by-products include major international food and feed businesses. We have strong existing relationships with many of them, developed over the last 20 years by our senior management team. Pet food companies who seek sustainable inputs for high margin consumer products Livestock suppliers to large supermarkets, who all have net zero GHG emissions targets Farmers across the EU seeking to lower their footprint, reduce costs and meet regulations Innovative companies in agriculture, cosmetics, and manufacturing, which seek high-quality by- products, eg. frass, chitin, and insect oils Agriculture businesses looking for affordable, low impact feed stock with high growth potential
- 11. Partnerships Partnering with olive pomace suppliers by building facilities adjacent to their mills and entering long-term supplier contracts. 100% Waste Product transformation Many other insect farming businesses are utilising non waste substrates like brewer’s spent grain (BSG), otherwise used for animal feed. Patent Protection IBG will acquire and file patents to protect our IP on BSFL and olive pomace waste processes, pre- treatment and operational design. Research & Development IBG will invest significantly in academic research. There is currently minimal research on using olive pomace in BSFL rearing. We will be amongst the first to invest in such research, thereby gaining a competitive advantage. Creating scale IBG is approaching this industry with scale in mind. We aim to build 5 large-scale insect rearing facilities across Andalucia by 2030. We will produce at least 150,000 tonnes of BSFL. What makes IBG a good investment opportunity? 〉 We will leverage our strong and unique relations with the world’s largest retailers and FMCG brands. 〉 This will result in early-stage letters of intent from manufacturers, pet food brands and livestock businesses. 〉 This will be followed by significant contracts to purchase our products when they are on stream and production is scaled.
- 12. Ignacio Gavilan – Chief Executive Officer & Co-founder Ignacio has spent 25 years working in manufacturing, FMCG, and agriculture businesses. A leader in supply chain sustainability, he leads retail, manufacturer CEO working groups on topics such as deforestation-free commodities, food waste, plastics, and supply chain decarbonisation. Ben Brown – Founder & Chief Strategy Officer Ben is a serial entrepreneur having built successful startups in healthcare tech, CRM and online media. He has extensive experience in operations, technology, finance and strategy. He’s been passionate about saving the oceans since he trained as a marine biologist. He also has an MBA from SDA Bocconi and the University of Western Australia. Marina Prutianov – Chief Operations Officer & Co- founder Marina excels at operations, facility management, laboratory processes and logistics. A Lean Six Sigma Green Belt, she’s been working with Baxter International since 2018 and has spent 15 years in senior positions across manufacturing, engineering and construction. Marina holds an MBA, holds a Bachelor of Engineering in Civil and Industrial Engineering. Executive Team Tobias Webb - Chief Sustainability & External Affairs Officer, and Co-founder Toby is founder of Innovation Forum and the Sustainable Wine Roundtable. Innovation Forum works with large agri business and food companies to tackle sustainability supply chain challenges across agriculture, materials and manufacturing. The Sustainable Wine Roundtable is an 85 strong membership organisation, made up of the world’s largest wine businesses, from retail to production. Our members sell wine to 60m+ consumers. Phil Salmon – Chief Finance Officer Phil is a senior financial professional with expertise in; business exits, private equity, restructuring, mergers and acquisitions, multi- level business partnering, financial planning, management accounting, sale and leaseback, project management, and governance.
- 13. Ben Brown | Founder | bb@insectbiotech.eu | +356 7981 3980 Get in touch