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Stockeld Dreamery loves cheese so much that it raised $20M to make it out of legumes

By Christine Hall

Cheese is one of those foods that when you like it, you actually love it. It’s also one of the most difficult foods to make from something other than milk. Stockeld Dreamery not only took that task on, it has a product to show for it.

The Stockholm-based company announced Thursday its Series A round of $20 million co-led by Astanor Ventures and Northzone. Joining them in the round — which founder Sorosh Tavakoli told TechCrunch he thought was “the largest-ever Series A round for a European plant-based alternatives startup,” was Gullspång Re:food, Eurazeo, Norrsken VC, Edastra, Trellis Road and angel investors David Frenkiel and Alexander Ljung.

Tavakoli previously founded video advertising startup Videoplaza, and sold it to Ooyala in 2014. Looking for his next project, he said he did some soul-searching and wanted the next company to do something with an environmental impact. He ended up in the world of food, plant-based food, in particular.

“Removing the animal has a huge impact on land, water, greenhouse gases, not to mention the factory farming,” he told TechCrunch. “I identified that cheese is the worst. However, though people are keen on shifting their diet, when they try alternative products, they don’t like it.”

Tavakoli then went in search of a co-founder with a science background and met Anja Leissner, whose background is in biotechnology and food science. Together they started Stockeld in 2019.

Pär-Jörgen Pärson, general partner at Northzone, was an investor in Videoplaza and said via email that Stockeld Dreamery was the result of “the best of technology paired with the best of science,” and that Tavakoli and Leissner were “using their scientific knowledge and vision of the future and proposing a commercial application, which is very rare in the foodtech space, if not unique.”

The company’s first product, Stockeld Chunk, launched in May, but not without some trials and tribulations. The team tested over 1,000 iterations of their “cheese” product before finding a combination that worked, Tavakoli said.

Advances in the plant-based milk category have been successful for the most part, not necessarily because of the plant-based origins, but because they are tasty, he explained. Innovation is also progressing in meat, but cheese still proved difficult.

“They are typically made from starch and coconut oil, so you can have a terrible experience from the smell and the mouth feel can be rubbery, plus there is no protein,” Tavakoli added.

Stockeld wanted protein as the core ingredient, so Chunk is made using fermented legumes — pea and fava in this case — which gives the cheese a feta-like look and feel and contains 30% protein.

Chunk was initially launched with restaurants and chefs in Sweden. Within the product pipeline are spreadable and melting cheese that Tavakoli expects to be on the market in the next 12 months. Melting cheese is one of the hardest to make, but would open up the company as a potential pizza ingredient if successful, he said.

Including the latest round, Stockeld has raised just over $24 million to date. The company started with four employees and has now grown to 23, and Tavakoli intends for that to be 50 by the end of next year.

The new funding will enable the company to focus on R&D, to build out a pilot plant and to move into a new headquarters building next year in Stockholm. The company also looks to expand out of Sweden and into the U.S.

“We have ambitious investors who understand what we are trying to do,” Tavakoli said. “We have an opportunity to think big and plan accordingly. We feel we are in a category of our own in a sense that we are using legumes for protein. We are almost like a third fermented legumes category, and it is exciting to see where we can take it.”

Eric Archambeau, co-founder and partner at Astanor Ventures, is one of those investors. He also met Tavakoli at his former company and said via email that when he was pitched on the idea of creating “the next generation of plant-based cheese,” he was interested.

“From the start, I have been continuously impressed by the Stockeld team’s diligence, determination and commitment to creating a truly revolutionary and delicious product,” Archambeau added. “They created a product that breaks the mold and paves the way towards a new future for the global cheese industry.”

Element Ventures pulls in $130M to double-down on the fintech enterprise trend

By Mike Butcher

With the rise of Open Banking, PSD2 Regulation, insurtech and the whole, general fintech boom, tech investors have realized there is an increasing place for dedicated funds which double down on this ongoing movement. When you look at the rise of banking-as-a-service offerings, payments platforms, insurtech, asset management and infrastructure providers, you realize there is a pretty huge revolution going on.

European fintech companies have raised $12.3 billion in 2021 according to Dealroom, but the market is still wide open for a great deal more funding for B2B fintech startups.

So it’s no surprise that B2B fintech-focused Element Ventures has announced a $130 million fund to double down on this new fintech enterprise trend.

Founded by financial services veterans Stephen Gibson and Michael McFadgen, and joined by Spencer Lake (HSBC’s former vice chairman of Global Banking and Markets), Element is backed by finance-oriented LPs and some 30 founders and executives from the sector.

Element says it will focus on what it calls a “high conviction investment strategy,” which will mean investing in only around a handful of companies a year (15 for the fund in total) but, it says, providing a “high level of support” to its portfolio.

So far it has backed B2B fintech firms across the U.K. and Europe, including Hepster (total raised $10 million), the embedded insurance platform out of Germany which I recently reported on; Billhop (total raised $6.7 million), the B2B payment network out of Sweden; Coincover (total raised $11.6 million), a cryptocurrency recovery service out of the U.K.; and Minna (total raised $25 million), the subscription management platform out of Sweden.

Speaking to me over a call, McFadgen, partner at Element Ventures, said: “Stephen and I have been investing in B2B fintech together for quite a long time. In 2018 we had the opportunity to start element and Spencer came on board in 2019. So Element as an independent venture firm is really a continuation of a strategy we’ve been involved in for a long time.”

Gibson added: “We are quite convinced by the European movement and the breakthrough these fintech and insurtech firms in Europe are having. Insurance has been a desert for innovation and that is changing. And you can see that we’re sort of trying to build a network around companies that have those breakthrough moments and provide not just capital but all the other things we think are part of the story. Building the company from A to C and D is the area that we try and roll our sleeves up and help these firms.”

Element says it also will be investing in the U.S. and Asia.

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