De Novo Foodlabs: Jean Louwrens shares how to get funded in 2024

Investment Climate Podcast: Fundraising Playbooks From Food Tech CEOs and VCs

In this podcast series, co-produced by vegconomist, Alex Shandrovsky interviews investors about benchmarks for funding Alt Proteins in 2024 and uncovers the investment playbooks of successful Climate Tech CEOs and Leading VCs.

Podcast Host Alex Shandrovksy is a strategic advisor to numerous global food tech accelerators and companies, including alternative proteins and cellular agriculture leaders. His focus is on investor relations and post-raise scale for agrifood tech companies.

Episode 15: De Novo Foodlabs: Jean Louwrens shares how to get funded in 2024

In this episode, Alex talks to Jean Louwrens, co-founder and CEO of De Novo Foodlabs, which focuses on using precision fermentation to produce scarce proteins more sustainably and affordably, addressing the challenge of harvesting these nutrients from nature. Jean shared insights on raising a seed round led by Joyful Ventures and building strong relationships with investors. He also highlighted the importance of partnering with large corporations for regulatory support and co-funding, even if it requires some early-stage trade-offs, such as regional exclusivity.

Key Facts De Novo Foodlabs:

Goal: To give Food & Beverage and nutrition companies a competitive edge with innovative products that are healthier for humans and the planet.
Recently closed seed round.
Lead investor: Joyful Ventures

Alex’ Top Findings:

Relationship Building: Developing strong relationships with investors early, even in informal settings, can lead to future investment.
Corporate Partnerships: DeNovo has secured strong partnerships with large companies, especially in the dairy industry, for regulatory support, co-funding, and market insights, which has reduced their reliance on venture capital.
Commercial Traction: Despite not yet being able to sell commercially due to regulatory hurdles, DeNovo shows traction through letters of intent, regulatory support, and corporate collaboration to prepare for market entry.
Off-take Agreements: Locking in pricing for off-take agreements is really challenging, as costs of production may change. Jean recommends creating financial models to project costs and building wiggle room into contracts for price adjustments.
Regulatory Strategy: Navigating regulatory approval (e.g., FDA) is complex and time-consuming, often taking longer than expected. To minimize risk, startups should seek advice from legal experts and people who have successfully navigated the process, especially those who worked with regulatory bodies like the FDA.
Advice for Early-Stage Companies: Jean advises focusing on customer traction, leveraging corporate partnerships for regulatory and funding support, and potentially seeking external due diligence for competitive analysis.