Food technology startup Aqua Cultured Foods has raised $5.5 million in seed funding to bring its seafood alternatives to market.
The round was led by Leawood, Kansas-based Stray Dog Capital, a venture capital fund specializing in alternative protein investments.
Also participating were H Venture Partners, Aztec Capital Management and Amplifica Capital, along with follow-on investment from current investors Supply Change Capital, Big Idea Ventures, HPA, Area VC, Kingfisher Family Investments and Swiss Pampa. The round also included a strategic investment from CJ CheilJedang, a South Korea-based food and bio company owning brands such as Bibigo.
Chicago-based Aqua Cultured Foods, an Inno Madness quarterfinalist, said it plans to use the investment to equip its new facility, scale up production, bring products to market, add key staff, and expand its roster of restaurant and foodservice outlets for product introductions this year.
“We appreciate having mission-aligned partners that offer strong strategic value for the next phase of our growth, which will involve building up the business and brand,” said Aqua Chief Executive Anne Palermo in a statement. “Being good stewards of investor capital is important to us, so along with hitting milestones earlier than expected, we are benefiting from government programs, academic resources and other advantages to get to market quickly.”
Aqua said it keeps costs low due to its fermentation methods that use relatively affordable inputs and equipment. The company recently acquired a food-grade facility that was already built out nearly to its requirements, which it estimates will save more than a million dollars in construction costs. Aqua also was recently accepted into the Illinois Office of Business Development’s EDGE program that provides tax incentives to growing companies.
Aqua Cultured is developing calamari, shrimp, scallops, and filets of tuna and whitefish with mycoprotein fermentation processes that do not use any animal inputs, genetic altering or modification. The company said that unlike plant-based processed foods formulated with starches and protein isolates, Aqua’s alt-seafood retains its naturally occurring fiber, protein and other nutrients. The company also produces minced “seafood” fillings for use in dishes such as dumplings, ravioli and sushi rolls.
Acqua said the global plant-based seafood market was valued at $42.1 million in 2021, and is projected to reach $1.3 billion by 2031.
