South African insect producer raises $5.3 million
Friday, April 22, 2022
Futuregrowth Asset Management invested $5.3 million in South African startup company Inseco, in one of the largest seed funding rounds in South Africa’s history. The investment is via the Futuregrowth Development Equity Fund and reflects the Fund’s strategy of diversification into worthy early-stage assets. It also aligns with Futuregrowth’s growing focus on investing in innovative and sustainable initiatives across the agricultural value chain, especially when these have a beneficial impact on the planet.
Inseco uses black soldier flies to convert low-value organic byproducts into high-quality protein, oils and fertilizer. Its flagship products, EntoMeal and EntoOil, are nutritious and sustainable alternatives to conventional products such as fishmeal and fish oil, with distinct environmental returns. Inseco is Cape Town-based and currently supplies the local aquaculture, pet food and poultry market. The company plans to expand into the rest of Africa, Europe and the U.S. The investment will be used to increase its manufacturing capacity and fund ongoing research and development to ensure that it remains ahead of the curve.
Inseco has received global recognition for its innovative business model. One of the most notable achievements was its participation in the Technology Innovation Agency Global Cleantech Innovation Programme in 2019. In this highly esteemed competition, Inseco won the award for the best youth-led team in the cleantech category and was also the overall winner of the category. As part of winning the competition, Inseco was sent to Austria to pitch to the global forum sponsored by UNIDO (the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globali
“We were particularly impressed with the executive team. They have demonstrated tenacity, creativity, strategic insight, and strong alignment with their shareholders. They have proven technical expertise and come with a wealth of experience,” said Amrish Narrandes, head of Unlisted Equity at Futuregrowth.
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