Fundraising

CPP Investments backs Meati Foods’ $150m funding round

The Colorado-based agtech start-up also attracted investment from restaurant chain Chipotle Mexican Grill's new $50m venture fund Cultivate Next.

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CPP Investments was among several investors involved in a $150 million Series C funding round for plant-based protein start-up Meati Foods.

The Colorado-based agtech company uses mushroom root to produce alternative protein products, which it claims are comparable to animal meat in taste and texture, but with the benefit of more fibre and no cholesterol.

The round was led by Revolution Growth and also attracted investment from Grosvenor Food & Agtech, Wellington Management and Cultivate Next, which is restaurant chain Chipotle Mexican Grill’s $50 million venture fund launched in April.

Meati Foods will use the capital to complete construction of its 100,000 square foot facility that will begin shipping products at the end of the year, with plans to produce “tens of millions of pounds of product annually,” said a company statement.

Meati Foods CEO and co-founder Tyler Huggins said in the statement: “Revolution Growth and our new and existing investors bring not just the financial firepower and ethos alignment, but deep and diversified expertise that will be instrumental in building a brand and organization that will truly change how people eat in a way that’s better for our bodies and better for our planet.”

Revolution Growth partner Fazeela Abdul Rashid added: “The company is meeting an unmet demand for products that are delicious, healthy, and good for the planet. We’re thrilled to partner with Tyler and the full team as the company expands its production and tackles real-world issues of food security and sustainability.”

CPP Investments’ deployed capital from its Climate Change Opportunities strategy for the first time in July 2020, when it placed a $50 million direct investment into alternative dairy producer Perfect Day.

The Canadian pension’s Climate Change Opportunities strategy is split into three “structural drivers” and seeks out opportunities created by physical changes, such as temperature and sea level increases, policy and regulatory “transitions,” and shifting food consumption behavior, group managing director Leon Pedersen told Agri Investor at the time of its Perfect Day investment.