New School Foods, a trailblazer in the plant-based seafood sector, has successfully raised an additional $6 million in a seed extension round. This latest infusion of capital comes from prominent investors including Inter IKEA Group, Good Startup, NewTree Capital, and Hatch. With this new funding, the Ontario, Canada-based company’s total investment now stands at a robust $18 million.
The company has also unveiled a state-of-the-art 28,000-square-foot pilot facility in Toronto. This new plant will enable New School Foods to scale up its production to commercial levels, marking a significant milestone in its journey toward bringing plant-based whole-cut seafood analogues to market. This facility is designed to leverage New School’s proprietary muscle fiber and scaffolding technologies, which the company claims can recreate the look, texture, and taste of real salmon, even down to the characteristic flaking.
The timing of this development is particularly noteworthy. New School Foods initially secured $12 million in seed funding from Lever VC, Hatch, and other investors earlier this year, coinciding with the announcement of their plans to build the pilot facility. This new round of funding and the operational pilot plant signify the company’s readiness to transition from development to commercialization.
Despite a recent cooling of both consumer and investor enthusiasm for plant-based proteins in some markets, particularly in the United States, New School Foods appears to be bucking the trend. “New School Foods is a true pioneer in the alternative protein industry, and we were impressed by the team, their products, and the production technology they’ve developed,” said Robert Carleke, innovation ventures manager at Inter IKEA Group. Carleke emphasized New School Foods’ commitment to sustainability and innovation, aligning with IKEA’s broader goals to make at least 50% of its offerings plant-based. IKEA has already introduced plant-based versions of its popular meatballs and hot dogs.
One of the standout features of New School Foods is its complete control over its manufacturing processes. Unlike many other plant-based companies that rely on co-manufacturers, New School Foods runs its own production operations. This autonomy allows the company to maintain stringent control over quality and unit costs, while also enabling continuous innovation in both process and product formulation. The company believes this is crucial for creating plant-based alternatives that can appeal to a broader audience.
The technical challenges of producing whole-cut meat and fish analogues are significant. These products require the replication of complex structures like texture, connective tissue, and muscle fibers found in animal proteins. New School Foods’ proprietary technologies aim to address these challenges head-on, making the company’s direct control over manufacturing even more vital.
Earlier this year, New School Foods collaborated with renowned vegan chef Matthew Kenney to launch the New School Culinary Council. This invite-only group of chefs and restaurants is tasked with providing feedback and guidance as the company prepares for its commercial launch. The additional funding and the new pilot facility will be pivotal in enabling New School Foods to bring its products to market in both the US and Canada.
The assembly line at the new pilot plant is based on novel technologies that are not only scalable but also versatile enough to produce other whole-muscle protein analogues using the same equipment. This scalability and versatility could position New School Foods as a leader in the plant-based protein market, offering a range of products that meet the growing demand for sustainable and ethical food options.
As New School Foods moves closer to its commercial launch, the support from high-profile investors and the operational capabilities of its new facility underscore the company’s potential to make a significant impact in the plant-based protein industry.