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By Agroempresario.com
Aleph Farms, an Israeli cultivated meat startup, has raised $29 million in funding to accelerate its efforts in commercializing lower-cost whole-cut cultivated steak. This investment comes at a time when the company is unveiling modifications to its core technology, enabling it to produce premium cuts with fewer steps and at a significantly reduced cost. The $29 million includes $22 million raised through a SAFE (Simple Agreement for Future Equity) that has now been converted, along with an additional $7 million from existing investors in the first closing of an ongoing round. This capital infusion will help Aleph expand its pilot facility in Israel and establish intermediate-scale production facilities in Europe and Asia, aiming to reach profitability and scale globally.
The funding will primarily be used to scale up Aleph's pilot facility and launch the first Aleph Cut, a whole-cut cultivated steak, using an optimized production process designed for both profitability and scalability. Didier Toubia, cofounder and CEO of Aleph Farms, emphasized that the company has overcome many of the challenges associated with cultivated meat, including issues related to regulation, product-market fit, scalability, and profitability. "The sustained confidence shown by existing investors is a clear indicator of Aleph Farms' strength, execution, and potential to deliver relevant, scalable solutions for humanity’s most pressing challenges in a profitable, capital-efficient, and responsible way," stated Jonathan Berger, CEO of The Kitchen Hub, a key investor in the company.
Aleph Farms stands out in the cultivated meat space by focusing initially on premium beef steaks, rather than processed chicken products, setting it apart from other companies. The company claims that tweaks to its production process, including the removal of costly steps and a reduction in media costs, will allow it to achieve production costs of $14 per pound at a medium-scale production of 2,000-5,000 liters and $6-7 per pound at large-scale production.
The company’s traditional approach involves proliferating cells in a bioreactor and then transferring them to a second bioreactor, where they are seeded onto plant-based scaffolds to mature into muscle and fat cells, which then form the signature thin steaks. However, with the new "1.2" approach, Aleph Farms simplifies this by removing the second bioreactor step. Instead, it triggers the cells to partially differentiate into fat and muscle in the first bioreactor by altering the media composition. The cells are then harvested and added to a plant protein matrix, eliminating the need for scaffolding.
This innovation significantly streamlines the production process, making it more scalable and reducing the time needed for cell differentiation by 60%. The company has also developed a unique, patent-pending process to incorporate the cells into a proprietary plant-based matrix, ensuring the final product maintains its nutritional and sensory integrity. This process is more efficient, enabling Aleph Farms to create thicker cuts of steak and to produce higher-density cell structures, further enhancing the quality and yield of the final product.
The modifications to the production process also reflect a strong commitment to sustainability. Aleph Farms has improved the feed-to-food conversion rate by ensuring that 100% of the feed and growth medium are used efficiently, effectively minimizing waste. The company has partnered with BioRaptor, a company that uses data and artificial intelligence to optimize bioprocesses, to improve its efficiency and further reduce overall production costs. Additionally, Aleph Farms has signed new supply agreements that will help it reach its targeted cost reductions.
"We have a zero-waste process, and that has been one of the key focuses for us," said Toubia. "We want to make sure that every drop of the medium is being used and that the process is as sustainable as possible. This optimization will allow us to bring the cost of production down significantly."
The company has also made substantial progress in refining the process in terms of cell density, which leads to more efficient production. By optimizing the growth medium and streamlining the cultivation process, Aleph Farms has successfully managed to dramatically reduce its production costs, positioning itself as one of the more cost-effective players in the cultivated meat space.
In terms of regulatory approval, Aleph Farms has made significant strides. The company has already secured approval to launch cultivated beef products in Israel and is currently in the process of filing an amended regulatory submission for its revised production process. Toubia expects that this new process will allow the company to launch its cultivated meat products in Israel within the next six months.
Aleph Farms is also expanding its efforts internationally, with ongoing regulatory submissions in Switzerland, the UK, and Thailand. These regulatory approvals are essential for the company as it moves toward commercial production and global market entry.
The company has also secured a facility in Modi'in, Israel, acquired from biotech company VBL Therapeutics, which is being retrofitted to produce larger quantities of cultivated meat. However, the immediate plan is to continue producing from its pilot facility in Israel while scaling up production through intermediate-scale facilities in Europe and Asia. These new facilities are expected to produce hundreds of tons of cultivated meat in the next few years, setting the stage for Aleph Farms to enter the U.S. market with a different technology designed to cater to the mass market.
Toubia stressed that Aleph Farms' strategy is focused on achieving breakeven and profitability through its mid-scale facilities, with future plans to scale up to large-scale facilities in the U.S. Using gene-editing technology, Aleph Farms aims to produce tens of thousands of tons of cultivated meat per facility, with the potential to achieve production costs of $6-7 per pound.
Aleph Farms has formed several strategic partnerships to support its market entry and scale production. In 2024, the company signed four new commercial agreements—two in Asia, one in Israel, and one in Europe—and is currently negotiating a fifth agreement. These partnerships are critical for supporting the company’s efforts to bring its products to market and ensure product-market fit.
"We’ve worked extensively with customers, chefs, and restaurants in Israel, Singapore, Thailand, and Europe to refine the product and ensure it meets consumer expectations," said Toubia. "We believe that the companies that will lead in this space are those that can deliver the right product at the right price, with the right positioning, rather than simply being the first to launch."
These partnerships are helping Aleph Farms position itself as a leader in the cultivated meat sector, offering high-quality, sustainable alternatives to conventional meat products. The company's focus on premium beef cuts and its ability to scale production efficiently give it a competitive edge in the marketplace.
The cultivated meat industry is currently at a crossroads, with funding for startups in the sector declining in 2024. AgFunder data shows that funding for cultivated meat startups peaked at $989 million in 2021, then dropped to $807 million in 2022 and further decreased to just $177 million in 2023. Despite these challenges, Aleph Farms remains confident in its ability to navigate the current funding landscape and scale its operations.
In the U.S., political sentiment surrounding cultivated meat is becoming increasingly contentious, with some states like Florida, Mississippi, and Alabama moving to ban or limit its production. This regulatory uncertainty is adding complexity to the market entry strategy for cultivated meat companies.
However, with its innovative approach to production, strategic partnerships, and regulatory progress, Aleph Farms is well-positioned to lead the cultivated meat sector as it continues to refine its technology and scale production globally.
As the industry works to overcome funding and regulatory hurdles, Aleph Farms is committed to delivering scalable and sustainable solutions for the future of food, with a focus on high-quality, cultivated whole-cut steaks that meet consumer demand while addressing the environmental and ethical concerns associated with traditional meat production.
