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.
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
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