Collaboration for the win

Recently, the Good Food Institute embarked on a deep dive into non-dilutive funding pathways for alternative protein companies. We’ll make our findings available later this year as an open-access report. The high-level takeaway, however, is that there’s no low-hanging fruit. We’re finding instead that the industry needs to be far more collaborative to reach commercialization goals. Yet collaboration is not something that comes naturally to all companies. Being open and transparent can feel like risking IP and jeopardizing differentiation. These are, of course, valid concerns. But problems ensue when caution turns to isolation. Innovation suffocates in a vacuum.

Breaking out of a silo can take many forms. Joining a trade association, participating on a panel, forming a strategic partnership, arranging a gathering, attending a conference, or even having coffee with a competitor, are just some examples of what we should be doing as an emerging industry. We are collectively trying to solve massive systemic challenges related to climate change, land and water use, biodiversity loss, antibiotic resistance, food scarcity, national security, and animal welfare. These types of wide-reaching societal and environmental threats are most effectively managed through collaboration.

While venture capital will play a role in funding now and in the future, it is unlikely that it will be sufficient to achieve commercialization

Instead of focusing on how much of a company’s IP can be protected, it can be more productive to identify what portion of the IP or learnings can be shared. What technologies and partnerships could lift all (or many) boats? What unlocked solutions could eliminate redundancies and expedite the advancement of plant-based, fermentation-derived, and cultivated products and ingredients? What alliances could more effectively persuade policymakers than going it alone?

Unsurprisingly, these have not been the top questions on most founders’ minds over the past couple of years. On the contrary, competition for available funding intensified when the macroeconomic situation worsened and venture capital became increasingly scarce. As a result, some companies became more insular. Some pointed out perceived weaknesses in competitors or in other alternative protein platforms. And some struggled behind the scenes, afraid to signal distress.

What the industry needs, however, are aligned and committed stakeholders who are willing to work together to advance alternative proteins. That need has become even more evident in this difficult funding environment. While venture capital will play a role in funding now and in the future, it is unlikely that it will be sufficient to achieve commercialization. Collaboration is the path to fueling R&D, establishing adequate infrastructure, driving state and federal support, maintaining a robust supply chain, expediting time to market, and accessing large pools of capital. The key is to think of collaboration as a force multiplier for reaching milestones. Working with a partner or partners can reduce costs, provide access to inputs and equipment, avoid redundancies by using existing solutions, and add credibility.

It’s encouraging to see some companies in the space are already leading by example. AQUA Cultured just announced a partnership with Ginkgo Bioworks to optimize the quality of alternative seafood products. ENOUGH’s partnership with Cargill includes a co-located facility and offtake agreements for its mycoprotein, ABUNDA. Bühler and ZETA created the 50/50 joint venture, Eridia, to accelerate bioprocessing for the food and feed industry. EVERY has joined forces with AB InBev and Ingredion to advance their animal-free protein. Many more examples exist, but still more are needed to shift the food system.

This is a critical time for alternative proteins and the decisions the industry’s leaders make now will shape the future of the sector. To succeed, it’s imperative to shelve the practices that do not lead to progress and embrace the ones that do. Collaboration for the win.

Laine Clark is the Senior Corporate Engagement Manager, Innovation, at The Good Food Institute, the international nonprofit working to shift the global food system to options that are better for the planet, people, and animals. This article is republished from the Q2 2024 edition of Protein Production Technology International, the industry's leading resource for alternative proteins. To subscribe to all future editions, please click here