Innovative plant protein turning heads with offshore investors
New Zealand foodtech start-up Leaft Foods is revolutionising the agriculture industry with its new protein extraction technology.
As the world adapts to the climate-change crisis, the demand for food sources that can be sustainably produced, provide supply chain security and decrease overall agricultural reliance is rising. The global market for alternative proteins is growing exponentially and investors are on the lookout for innovative foodtech solutions for tomorrow's world.
Ambitious New Zealand foodtech start-up Leaft foods is one such company to keep an eye on.
They're on track to transform the agriculture industry with revolutionary technology that allows the extraction of plant protein from sustainably farmed green leaves. This innovative system provides farmers with a sustainable option to repurpose dairy pasture that doesn't disrupt their livelihoods.
The company recently gained the interest of both local and international investors, closing a Series A $22 million (NZD) investment round led by Silicon Valley-based Khosla Ventures, with participation from Ngāi Tahu Holdings, ACC's Climate Change Impact Fund, and NBA Basketballer impact investor Steven Adams.
Founded by Dr John Penno and Maury Leyland Penno and led by CEO Ross Milne, the company is developing emission reduction pathways for livestock farming via its integrated farm system, which produces a protein-optimised animal feed from the co-product of its protein extraction.
With the latest round of funding, the Christchurch-based company will grow its farm system, its technical and product development teams, expand research and development, and enhance manufacturing capacity ahead of market launch.
Leaft Foods Co-Founder Maury Leyland Penno says, "The priority has always been about getting people along on the journey with us. The Leaft system could be truly transformational, and that is what our investment partners are backing."
Leaft Foods' technology extracts Rubisco, the most abundant protein on the planet, found in all green leaves. Rubisco has a complete amino acid profile, similar to beef. Leaft's protein does not require blending to manipulate the protein content or functionality, unlike other plant proteins. In addition to its high digestibility, Leaft's protein has a neutral taste and colour. Its hypoallergenic status could be a gamechanger for people sensitive to whey, soy, or egg protein.
Co-founder Dr John Penno says "Bringing this all-in-one protein to the market will have a huge impact on the lives of people dissatisfied with animal and plant proteins, many of them citing taste and environmental reasons, while also, creating a pathway for New Zealand farmers to diversify into a system with a lower environmental footprint."
Working with NZTE Investment
The NZTE Investment team supported Leaft with their investment round by providing market insights for their capital strategy and facilitating investor introductions to both local and global investors. This included connecting them to eventual lead investor, Khosla Ventures.
NZTE Investment Manager Oliviah Theyers-Collins (Christchurch) said "When we initially met with the Leaft team, it was clear they had a strong roadmap for growth and well-aligned capital strategy. Our team was then able to support their strategy by providing benchmarking data to validate their position in the market and connections to key US investors. We're thrilled with the outcome achieved."
About the founders
John co-founded and led the Synlait Group from 2000 to 2018 and remains on the dairy company's board, while Maury was a senior executive at Fonterra. Since 2017, the dairy power couple have been backing early-stage, sustainable agritech and food businesses through Okuora Investments and the development of Leaft Foods' revolutionary technology.
About New Zealand
New Zealand's innovative foodtech companies are preparing for tomorrows world by creating new alternative proteins and dairy products today.
We have several successful alternative protein providers already distributing internationally and as a world leader in food production and exports, we rank third in the world for food safety and nutritional standards (Global Food Security Index, 2021).
If you're an investor looking to explore investment opportunities in New Zealand, or you're a New Zealand organisation wanting to raise capital for global growth, the New Zealand Trade and Enterprise (NZTE) Investment team is ready to help.
