Singapore-based agrifood investor VisVires New Protein (VVNP) has recently undergone a rebranding and is now known as Clay Capital. Alongside this announcement, Clay Capital has also closed its second fund, raising an impressive $145 million. The fund will be used to support startups in Europe, Israel, and Asia that are focused on leveraging technology to address key challenges within the food system.
Clay Capital has already made initial investments in several promising companies. These include French biostimulant producer Toopi, Israeli bioherbicide startup WeedOUT, and French kitchen robot manufacturer Cook-e. The firm is backed by a range of institutional investors, including government-linked funds, supra-national entities, banks, insurance companies, and prominent families within the agrifood industry.
Matthieu Vermersch, Cofounder and Partner at Clay Capital, highlighted the importance of addressing the environmental impact of the food industry. He stated, “As part of the larger climate tech market, food remains a major source of emissions and natural capital destruction.” Vermersch also noted that there has been a notable shift in the sector over the past nine years, with increased support for sustainable food solutions and a renewed focus on business fundamentals.
One of the key strengths of European startups, according to Gerard Chia, a partner at Clay Capital, is their adaptability and ability to navigate regulatory challenges. Despite the complex regulatory environment in the EU, European founders tend to be more flexible and dynamic in meeting various market requirements. Chia believes that this mindset makes European companies well-suited to expanding into Asian markets, compared to their counterparts in the US.
Regulatory pressures in Europe are also driving innovation within the agrifood industry. For instance, Clay Capital has invested in portfolio company In Ovo, which focuses on sex determination for chicks. European governments are increasingly concerned about animal welfare and are committed to sustainability. As a result, there is a push to find alternatives to the culling of male chicks, which has led to increased interest in technologies like in-ovo sexing.
Clay Capital plans to invest in up to 15 companies with its new fund, ranging from early-stage to growth-stage startups. The firm’s areas of interest include sustainable packaging, fermentation, agriculture biologicals, crop disease resistance, soil health, and regenerative agriculture. Initial investments will range from $3-8 million, with additional capital reserved for follow-on investments.
The rebranding of VisVires New Protein to Clay Capital reflects the firm’s focus on building a healthy and sustainable food system. The name change also signifies the firm’s positioning as a bridge between the Asian and European markets. By offering support to startups in finding and accessing growth opportunities in both regions, Clay Capital aims to foster collaboration and innovation across continents.
Overall, the rebranding and the closing of Clay Capital’s second fund mark an exciting development in the agrifood investment landscape. With a significant amount of capital available, Clay Capital has the potential to drive meaningful change by supporting startups that are tackling fundamental problems in the food system.