NS/TX Industries secures US$10.5 million to expand alternative protein manufacturing platform

NS/TX Industries, the manufacturing technology company behind plant-based meat brand NEW/SCHOOL FOODS, has secured US$10.5 million in Series A financing and non-dilutive grants to expand its alternative protein manufacturing platform and begin construction of a new production line designed to increase capacity by more than tenfold.

• NS/TX Industries secured US$10.5 million in Series A financing and non-dilutive grants to expand its manufacturing platform.
• The funding will support construction of the company’s V2 Assembly Line at its 28,000-square-foot Toronto facility.
• NS/TX reported that the new line is expected to increase production capacity by more than tenfold while further reducing manufacturing costs.

The funding round was co-led by Inter IKEA Development BV and Lever VC, with participation from Good Startup, Verdex Capital, company founder Chris Bryson, and non-dilutive funding from Protein Industries Canada.

The capital will be used to construct and commission the V2 Assembly Line at NS/TX’s manufacturing facility in Toronto. According to the company, the automated line will significantly increase output while continuing efforts to lower production costs for alternative protein products.

The investment marks the latest milestone for the Canadian company, which has spent the past several years developing manufacturing technologies aimed at overcoming some of the production and scalability challenges that have constrained the alternative protein sector.

NS/TX launched its first commercial assembly line, known as V1, in late 2024. Since then, the company reported reducing production costs by more than 10 times while validating the scalability of its proprietary texturization and scaffolding technologies through hundreds of production trials, machinery upgrades, digital quality assurance improvements, and process optimization efforts.

Those activities have also resulted in new patents and proprietary equipment designs, according to the company.

Unlike conventional extrusion systems commonly used to manufacture plant-based meat products, NS/TX’s platform is based on a scaffolding approach designed to create whole-cut meat and seafood alternatives. The technology allows manufacturers to produce products intended to replicate the structure and eating experience of steaks, filets, and other intact cuts while also supporting products such as burgers and breaded items.

The company said its platform enables manufacturers to tailor texture, flavor, appearance, and nutritional characteristics while utilizing a range of proteins, fats, flavors, colors, and functional ingredients.

NS/TX also highlighted that its manufacturing process eliminates the need for methylcellulose, an ingredient widely used as a binder in many plant-based meat products but often criticized by consumers seeking cleaner ingredient labels.

The technology can be applied across multiple product categories, including both red meat and seafood alternatives.

The company believes the additional capacity provided by the V2 Assembly Line will allow it to expand beyond its own branded products and offer manufacturing, research and development, technology licensing, and co-manufacturing services to food companies around the world.

The funding attracted support from investors focused on sustainable materials and food systems, including Inter IKEA Development BV.

“In our mission to support companies leading the next generation of sustainable and affordable products and materials, we have been very impressed with NS/TX’s rapid progress in solving key scale-up challenges and demonstrating the versatility of its manufacturing platform, and we are excited to support them through this next chapter of growth,” said Raffaele Govinazzi, Innovation Ventures Leader at Inter IKEA Group.

Protein Industries Canada, which provided non-dilutive funding as part of the financing package, highlighted the company's role in developing food manufacturing technologies and expertise within Canada.

“NEW/SCHOOL FOODS and NS/TX Industries have been a valuable partner in the development of new technologies and talent in the Canadian food production and value-added agriculture sector. Their continued growth and ability to attract new investment is proof that Canada can build a stronger future for all Canadians, from new food options for consumers to new economic opportunities for Canada,” said Tyler Groeneveld, CEO of Protein Industries Canada.

For Chris Bryson, Founder & CEO, the latest funding round represents an opportunity to scale the company’s manufacturing capabilities while making its technology available to a wider range of food brands.

“We’re excited to embark on this next chapter of growth. By automating and scaling our platform, we will be able to produce meat alternatives that are cost-competitive and that finally meet customer demands. With the added capacity that this new assembly line will provide, we will be able to work with leading brands across the globe to make our technology, production capacity, and products available to them,” said Bryson.

The construction of the V2 Assembly Line is expected to be the next step in NS/TX Industries’ efforts to commercialize its manufacturing platform at larger scale, as the company seeks to serve both its own brands and third-party customers in the alternative protein market.