Why we invested in Jellatech

Collagen is probably the most abundant protein in animals, accounting for almost one-third of an animal’s total protein composition. This protein is widely used in the cosmetic, supplement, and medical industries. Traditionally, collagen is sourced from bovine (cow) and porcine (pig) sources. The issue with the collagen supply chain is similar to that of the food industry currently. The supply chain is cumbersome and inefficient, the quality of the product is inconsistent, and there are extremely large GHG issues. In our estimates, livestock alone is estimated to be responsible for almost 14.5% of the global greenhouse gas emissions. Collagen and gelatin production is directly tied to animal livestock and the food industry as it is a product generated from the skin and bones of cattle. Moreover, the current supply of gelatin and collagen is constantly fluctuating due to changing climate & zoonotic diseases.

Jellatech is utilizing a cell culture platform approach to produce alternative proteins for fashion, beauty, food, and biomedical industries, without contributing to GHG emissions, helping them to synthesize more complex macromolecules compared to other companies that use fermentation practices, with the option of becoming s circular company eventually. There is a huge gap in the healthcare industry for not only a sustainable source of collagen but one that is highly bioactive and functional. We believe Jellatech will capture the market for both hydrolyzed collagen as well as full-length triple helical collagen. Jellatech’s cell culture platform requires less biomass than other companies conducting similar work in regards to cell-based meat. Thus, the company can afford to use fewer cells and media resources than other alternative protein companies.

For some context, Jellatech is currently focusing on, including food & beverage, materials, cosmetics, and the most lucrative being biomedical. The collagen market is a huge opportunity. In our estimates, both traditional collagen and animal-free collagen markets have an estimated 9+% CAGR thru the end of the decade. For additional reference, the current global collagen market sits at about $8.5 billion. Most importantly, they have already been approached by two large manufacturers to potentially collaborate and develop product.

Lastly, I’m a massive fan of the founder’s work, Stephanie Michelsen. This podcast should tell you why :) https://thespoon.tech/podcast-talking-cell-based-collagen-with-jellatechs-stephanie-michelsen/