Edinburgh-based Beta Bugs, a biotech company that produces enhanced insect strains for the growing insect farming industry, announced that it has secured £1.72M (nearly €1.95M) in a fresh round of funding.
The investment was led by TRICAPITAL Syndicate LLP. The round also saw participation from SIS Ventures, Scottish Enterprise, Beeches Group, and Climate.vc with existing investors in the business and InnovateUK.
Moray Martin, Managing Partner of The TRICAPITAL Syndicate says, “Insect farming is increasingly seen as a sustainable alternative protein source that could help mitigate the predicted increase in protein demand over the coming decades.”
“The significantly lower environmental impact of insect farming places the sector at the forefront of sustainable food source development. In that context we are delighted to be able to support the acceleration of Beta Bugs to commercial scale.”
Kerry Sharp, Director of Entrepreneurship and Investment at Scottish Enterprise adds, “We have supported Beta Bugs through our high growth ventures team as well as financially and this recent investment will help the company fly high as it expands the team and continues to develop its sustainable and innovative insect protein solutions.”
“It’s a great example of a Scottish bio tech scale up providing value in the supply chain for the agriculture industry and with benefits for the economy and environment.”
Making better insects
Beta Bugs has created the UK’s first selective breeding programme and egg production facility for the Black Soldier Fly. The company claims that this approach provides an eco-friendly protein source for aquaculture, pork, and poultry feed using agricultural and food waste.
Black Soldier Fly farming offers a sustainable alternative to environmentally harmful soy meal and fishmeal production, crucial in curbing deforestation and overfishing.
According to Beta Bugs, given the projected global population of 9.7 billion by 2050, current livestock farming methods would require an additional 539 million hectares of habitat, equivalent to 44 times the size of Scotland, to meet the escalating protein demand.
Beta Bugs has achieved a breakthrough by genetically enhancing Black Soldier Fly for large-scale production. This advancement allows insect producers to boost protein yield and quality for animal feed, making it competitive with soy and fishmeal in terms of price.
This development marks a significant stride in the commercial farming of Black Soldier Fly, which has not been genetically improved for large-scale use until now.
Brief about Beta Bugs
Founded in 2017 by Thomas Farrugia, Beta Bugs operates from the Easter Bush Campus in Scotland, a hub for animal science and genetics. Currently employing 12 staff, the company plans to hire four more full-time employees soon.
To help its growth, Beta Bugs has appointed Chris Richards, a seasoned expert in the international agribusiness sector, as its Non-Executive Chair.
Capital utilisation
Beta Bugs says it will use the funds to scale up the production, sale and supply of its Black Soldier Fly eggs and larvae to the insect farming sector, as a sustainable alternative to current sources of protein for animal feed.
Founder Thomas Farrugia says, “Beta Bugs has supplied its industry-leading products to an increasing number of established and new entrant insect farmers in the UK and international markets.”
“The company continues to develop its outstanding HiPer-Fly breeding programme, which has demonstrated consistent increases in Black Soldier Fly genetic performance across multiple, economically valuable production traits.”
“Completing this investment will allow us to expand production capacity, drive to profitability over the coming 18-24 months and further strengthen our market leadership position in the strategically important insect farming industry,” adds Thomas.
