CINXE.COM
foodHQ | GFI Report Explores Funding Landscape for Alt Proteins, Highlighting Challenges & Solutions
<!doctype html> <!-- Global site tag (gtag.js) - Google Analytics --> <script async src="https://www.googletagmanager.com/gtag/js?id=UA-112012026-1"></script> <script> window.dataLayer = window.dataLayer || []; function gtag() { dataLayer.push(arguments); } gtag('js', new Date()); gtag('config', 'UA-112012026-1'); </script> <html> <head> <meta charset="utf-8"> <meta http-equiv="X-UA-Compatible" content="IE=edge,chrome=1"> <meta name="viewport" content="width=device-width, initial-scale=1.0, maximum-scale=1.0, user-scalable=no"> <title> foodHQ | GFI Report Explores Funding Landscape for Alt Proteins, Highlighting Challenges & Solutions </title> <meta name="description" content=""> <meta name="author" content=""> <link rel="icon" href="/assets/favicon-foodHQ.png"> <link rel="stylesheet" href="/css/cph.css" /> </head> <body> <div id="wrapper"> <header id="header"> <div class="inner"> <a id="btnBurger" class="burger big-button"><img src="/assets/burger.png" /></a> <a href="/"> <img class="logo" src="/media/1031/logo-foodhq.png" /> </a> <div class="social-icons"> <a class="search big-button"><img src="/assets/search.png" /></a> </div> <a href="/channels-1" class="button subscribe">Channels</a> <a href="/subscribe" class="button subscribe">Subscribe</a> <a href="/rates" class="button advertise">Rates</a> <a href="/gpo" class="button advertise">Packages</a> <div class="search-box hide"> <input id="txtSearchQuery" type="text" placeholder="Search foodHQ..." /> <a id="btnSearch" class="button">Search</a> </div> <div class="links"> <a href="/" class="selected">HOME</a> <a href="/issue-sections/" >SECTORS</a> <a href="/events/" >EVENTS</a> <a href="/issues/" >ISSUES</a> <a href="/media/2648/foodhq_media-kit_2025.pdf" >MEDIA KIT</a> <a href="/buyers-guide/" >BUYER'S GUIDE</a> <a href="/contact-us/" >CONTACT US</a> <span class="stretch"></span> </div> </div> </header> <nav id="burgerMenu"> <div id="burger-menu"> <a href="/" class="selected">HOME</a> <a href="/issue-sections/" >SECTORS</a> <a href="/events/" >EVENTS</a> <a href="/issues/" >ISSUES</a> <a href="/media/2648/foodhq_media-kit_2025.pdf" >MEDIA KIT</a> <a href="/rates/" >RATES</a> <a href="/buyers-guide/" >BUYER'S GUIDE</a> <a href="/contact-us/" >CONTACT US</a> <a href="/subscribe" class="subscribe2">SUBSCRIBE</a> <div class="social-icons"> <a target="_blank" href="https://www.linkedin.com/company/food-hq/"><img src="/assets/linkedin.png" /></a> <a target="_blank" href="https://twitter.com/1foodHQ"><img src="/assets/twitter.png" /></a> <a target="_blank" href="https://www.facebook.com/1foodHQ/"><img src="/assets/facebook.png" /></a> <a target="_blank" href="https://www.instagram.com/1foodhq/"><img src="/assets/instagram.png" /></a> <a target="_blank" href="https://www.youtube.com/@1foodHQ"><img src="/assets/youtube.png" /></a> <a class="stretch" href="#"></a> </div> <span class="copyright">COPYRIGHT © One Media (1M) 2024</span> </div> </nav> <a class="leaderboard" target="_blank" href="https://omanagrofood.com/"> <div class="inner"> <img class="normal" src="/media/2632/240829-oaf-2024-food-hq-728x90.jpg" eight="90" /> <img class="mobile" src="/media/2632/240829-oaf-2024-food-hq-728x90.jpg" eight="96" /> </div> </a> <link rel="stylesheet" href="/css/article.css" /> <style type="text/css"> .article-summary { color: #9CAF88; } .article-panel .quote { color: #9CAF88; } .article-panel .quote img { background-color: #9CAF88; } </style> <section class="article-panel"> <div class="inner"> <div class="article-cover"> <div class="captions overlay"> <h4> <a href="/issue-sections/nutrition/"> Nutrition </a> - Alternative Proteins </h4> <h2 class=article-title-line1>GFI Report Explores Funding Landscape for Alt Proteins, Highlighting Challenges & Solutions</h2> <h2 class=article-title-line2></h2> <h5>September 2024</h5> </div> <div class="captions"> <h4> <a href="/issue-sections/nutrition/"> Nutrition </a> - Alternative Proteins </h4> <h2 class=article-title-line1>GFI Report Explores Funding Landscape for Alt Proteins, Highlighting Challenges & Solutions</h2> <h2 class=article-title-line2></h2> <h5>September 2024</h5> </div> <img class="big" src="/media/2643/picture2.jpg?anchor=center&mode=crop&width=950&height=480&rnd=133704274030000000" width="100%" /> <img class="normal hide" src="/media/2643/picture2.jpg?anchor=center&mode=crop&width=300&height=200&rnd=133704274030000000" width="100%" /> </div> <section> <article class="article-main"> <div class="article-summary"> </div> <div> <p>A new report by the Good Food Institute (GFI) has outlined the current funding landscape for alternative protein companies looking to scale from pilot to commercial manufacturing.</p> <p>Called Funding the Build, the guide describes how venture capital funding came to a halt after 2022 due to the tightening of US monetary policy and slowing plant-based meat sales. This means that many alternative protein companies looking to scale will need to find other sources of growth funding to overcome this industry bottleneck.</p> <p>Focusing on companies in the US market, the four-part report outlines possible solutions. Part 1 discusses the advantages and challenges of contract manufacturing as an alternative to constructing a self-owned facility, providing tips for companies considering this option. It also describes technology-specific considerations of this approach.</p> <p>Part 2 covers funding, including capital expenditure requirements for self-owned pilot, demo, and commercial-scale facilities. It explains how target funding mixes should change as a company grows, to feature affordable, long-term debt and government incentives. Additionally, pools of capital for commercial manufacturing are explained.</p> <p> <strong>Potential solutions</strong></p> <p>The third section of the report discusses two topics often thought of as solutions for funding alternative protein manufacture — project financing for self-owned facilities and long-term offtake contracts as a de-risking solution. The authors argue that these are unfortunately not likely to be viable long-term solutions.</p> <p>The final section describes potential paths forward in the context of a constrained equity funding environment that is likely to persist. It explores pools of capital that currently fund alternative proteins and promising approaches that could unlock more capital.</p> <p>The US government’s increasing interest in alt proteins is also discussed; for example, the country’s Department of Defence unveiled a new funding avenue for food technology companies earlier this year. Finally, the report assesses which business models are best positioned to secure venture capital, and discusses other innovative approaches that could help unlock larger pools of long-term debt financing.</p> <p><strong>“Increased investments are critical”</strong></p> <p>The investment climate for alternative proteins has been challenging over the past year, with high interest rates and a slumping food tech IPO market. However, there are several strategies that could make it easier to gain funding, as outlined by successful companies and investors in the Investment Climate podcast (co-produced by vegconomist). These strategies include making personal connections with investors, merging with another company that has a congruent mission, and avoiding complex regulatory pathways.</p> <p>Two GFI reports published in April found that cultivated meat and fermentation companies have continued to grow and see success despite a drop in investments, with new facilities opening and governments funding research and infrastructure. Additionally, a market report from January suggests that the alternative protein market will continue to see considerable growth in the coming years despite the challenges it faces.</p> <p>“Increased investments in and the acceleration of alternative protein innovation, infrastructure, and industry growth are critical to transitioning toward these new foods at a scale and pace needed to deliver planetary and public benefits — cleaner air and water, reduced public health risks, and a more resilient, diverse food supply chain,” says the new GFI guide.</p> <div class="source-info"> <p><a href="https://vegconomist.com/">https://vegconomist.com/</a></p> </div> </div> <div class="share-content"> Share: <div class="social-icons"> <a target="_blank" href="https://www.facebook.com/sharer/sharer.php?u=https://foodhq.world/issue-sections/nutrition/alternative-proteins/gfi-report-explores-funding-landscape-for-alt-proteins-highlighting-challenges-solutions/"><img src="/assets/facebook.png" /></a> <a target="_blank" href="http://twitter.com/share?text=GFI Report Explores Funding Landscape for Alt Proteins, Highlighting Challenges & Solutions&url=https://foodhq.world/issue-sections/nutrition/alternative-proteins/gfi-report-explores-funding-landscape-for-alt-proteins-highlighting-challenges-solutions/" class="twitter-share-button"><img src="/assets/twitter.png" /></a> <a target="_blank" href="https://www.linkedin.com/shareArticle?mini=true&url=https://foodhq.world/issue-sections/nutrition/alternative-proteins/gfi-report-explores-funding-landscape-for-alt-proteins-highlighting-challenges-solutions/&title=GFI Report Explores Funding Landscape for Alt Proteins, Highlighting Challenges & Solutions"><img src="/assets/linkedin.png" /></a> </div> </div> </article> <article class="article-related"> <h3>Related Articles</h3> <div class="related-articles"> <div class="articles-group" style="margin-top: 10px"> <section> </section> </div> </div> <h3>Latest Articles</h3> <div class="related-articles"> <div class="articles-group" style="margin-top: 10px"> <section> <article class="style2" style="width: 100%; margin:0; margin-bottom: 30px;"> <a href="/issue-sections/nutrition/marketing-food-choices/referendum-rejects-plan-to-boost-switzerlands-biodiversity/" class="image"> <img src="/media/2669/untitled.jpg?anchor=center&mode=crop&width=300&height=200&rnd=133755280710000000" /> </a> <div class="content"> <a href="/issue-sections/nutrition/marketing-food-choices/referendum-rejects-plan-to-boost-switzerlands-biodiversity/"> Referendum Rejects Plan to Boost Switzerland's Biodiversity </a> </div> </article> <article class="style2" style="width: 100%; margin:0; margin-bottom: 30px;"> <a href="/issue-sections/nutrition/sugar-processed-food/expert-reaction-to-study-on-food-processing-and-type-2-diabetes-incidence/" class="image"> <img src="/media/2656/close-up-japanese-street-food_23-2149287811.jpg?anchor=center&mode=crop&width=300&height=200&rnd=133733799770000000" /> </a> <div class="content"> <a href="/issue-sections/nutrition/sugar-processed-food/expert-reaction-to-study-on-food-processing-and-type-2-diabetes-incidence/"> Expert Reaction to Study on Food Processing and Type 2 Diabetes Incidence </a> </div> </article> <article class="style2" style="width: 100%; margin:0; margin-bottom: 30px;"> <a href="/issue-sections/nutrition/healthy-strategies/is-seasonal-eating-better-for-your-health/" class="image"> <img src="/media/2624/vegetable-box-750x580-1.jpg?anchor=center&mode=crop&width=300&height=200&rnd=133681882730000000" /> </a> <div class="content"> <a href="/issue-sections/nutrition/healthy-strategies/is-seasonal-eating-better-for-your-health/"> Is seasonal eating better for your health? </a> </div> </article> </section> </div> </div> </article> </section> </div> </section> <!-- Subscribe to Newsletter --> <footer class="footer-bar"> <div class="inner"> <div> <div class="social-icons"> <a target="_blank" href="https://www.linkedin.com/company/food-hq/"><img src="/assets/linkedin.png" /></a> <a target="_blank" href="https://twitter.com/1foodHQ"><img src="/assets/twitter.png" /></a> <a target="_blank" href="https://www.facebook.com/1foodHQ/"><img src="/assets/facebook.png" /></a> <a target="_blank" href="https://www.instagram.com/1foodhq/"><img src="/assets/instagram.png" /></a> <a target="_blank" href="https://www.youtube.com/@1foodHQ"><img src="/assets/youtube.png" /></a> <a class="stretch" href="#"></a> </div> <div class="footer-links"> <a href="/rates/">Rates</a> <a href="/subscribe">Subscribe</a> <a href="/media/2648/foodhq_media-kit_2025.pdf">Media KIT</a> <a href="/careers/">Careers</a> <a href="/about-us/">About us</a> </div> <span class="copyright">COPYRIGHT © One Media (1M) 2024</span> </div> </div> </footer> </div> <script src="https://code.jquery.com/jquery-3.1.0.min.js" integrity="sha256-cCueBR6CsyA4/9szpPfrX3s49M9vUU5BgtiJj06wt/s=" crossorigin="anonymous"></script> <script src="https://ajax.aspnetcdn.com/ajax/jquery.validate/1.13.1/jquery.validate.min.js"></script> <script src="https://ajax.aspnetcdn.com/ajax/mvc/5.2.3/jquery.validate.unobtrusive.min.js"></script> <script src="/scripts/umbraco-starterkit-app.js"></script> <script src="/scripts/cph.js"></script> </body> </html>