Why alternative protein investors are flocking to fermentation - Business Insider

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Fermentation startups raised more than $400 million this year. Here's why investors are betting the process could be the next big alternative protein source.

Venture capitalists are ramping up investments in fermentation to create alternative versions of animal-based foods like ice cream and steak.

This is all made possible through fermentation — a production process that has been around for millennia and is used to make products like beer, kombucha, and kimchi. These products are created using yeast and other common microorganisms. By contrast, Perfect Day, which is dairy focused, uses microbes that have been genetically engineered to produce casein and whey, the two main proteins in milk.

"We've sort of crossed the Valley of Death, we've shown that our technology works in the full commercial scale," Gandhi told Business Insider in an interview. "Then, the process to turn it into a chicken nugget, for instance, would be very much equivalent to what you do when you take a piece of chicken and turn it into a chicken nugget," he added.

 

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