Bavaria, Germany-based FarmInsect, an agritech startup that offers an automated solution for local insect breeding at the farmer as animal feed, announced that it has secured a total of €8M in a Series A round of funding.
Bayern Kapital, an initial investor in 2021, is increasing its investment with funds from Wachstumsfonds Bayern 2. Other investors in this round include Sandwater, Minderoo Foundation, and the EIC Fund, sourced from EU subsidies.
Monika Steger, MD of Bayern Kapital says, “One thing was clear to us even with our first stake around two years ago: Insect-based feed is a key part of the puzzle for sustainable and future-proof agriculture.”
“FarmInsect’s experienced team developed the company in a very positive way, installed the first customer systems and opened a new production site. We are highly satisfied with the collaboration to date and see a lot of potential for the future.”
Bavaria’s minister for economic affairs, Hubert Aiwanger adds, “In Bavaria, agriculture is both an economic sector and a core part of our long-standing cultural landscape. This is why we are keen to support the growth of sustainable and technology-oriented agritech companies like FarmInsect.”
“To this end, in 2020 we established the Wachstumsfonds Bayern 2, adding €165M to it in conjuction with the European Investment Bank (EIB). In this way, we have already begun to forge tomorrow’s regional production networks, today.”
Automated solution for local insect breeding
Founded in 2019 by Wolfgang Westermeier and Thomas Kuehn, FarmInsect has created an automated system enabling farmers to produce protein-rich animal feed using insect larvae on-site.
This eliminates the need for costly and environmentally harmful imports like soy and fishmeal. The company aims to enhance the sustainability of agricultural animal feed production.
Traditional components like soy and fishmeal contribute significantly to climate change, with soy expansion leading to deforestation and overfishing disrupting marine ecosystems. FarmInsect’s approach addresses these issues by promoting localised, eco-friendly feed production.
FarmInsect, backed by EU and Bavarian Ministry of Agriculture funding, operates a pilot plant at the Technical University of Munich. It claims to have created Europe’s largest regional insect production network, uniquely focusing on seed larvae, setting a new standard in the industry.
Small insects – big effects
FarmInsect claims to revolutionise livestock feed production by using black soldier fly larvae and regional agricultural waste to create high-quality protein feed. Their “circular economy” system reduces CO2 emissions, lowers costs by up to 30 per cent, and provides farmers with an automated fattening process.
The system also produces compost as a valuable by-product, promoting environmental sustainability and offering economic benefits.
With real-time monitoring through an interactive IT platform, FarmInsect empowers farmers, reduces reliance on global supply chains, and enhances overall agricultural efficiency.
Capital utilisation
FarmInsect aims to use the funds to expand sales efforts and maximise production capacity for young larvae at its existing facility.
Co-founder Thomas Kuehn says, “We are very grateful for the trust that our investors have placed in us. Together we will pursue our ambitious goal to fully replace soy and fishmeal in the EU with our sustainable closed-loop model.”
“In the next step, we plan to intensify our R&D activities in order to decisively expand the current breeding lines. A further goal is to open an additional production facility.”
Brief about Bayern Kapital
Based in Landshut, Germany, Bayern Kapital GmbH is a venture/growth capital firm funded by the Free State of Bavaria. Since 1995, it has invested around €450M of its own equity capital and supported over 300 companies in Bavaria. The firm invests from €0.25M to €25M in various growth stages.
Collaborating with private investors, Bayern Kapital manages funds totalling €700M and has created over 8,000 sustainable jobs in sectors like life sciences, software, nanotechnology, and environmental technology. Their active portfolio includes around 80 companies.
Bayern Kapital has a track record of supporting pioneering startups, including industry leaders like EOS in 3D printing. Other successful ventures include Proglove, Fazua, and SimScale, among others, showcasing their early-stage investments in innovative companies.
