The Kitchen Hub Announces $70M Fund to Find Deep Tech Solutions for Alt Protein Industry

The Kitchen Hub, the food tech incubator and investment arm of Israeli food giant Strauss Group, is raising a new $70 million fund to support startups fixing challenges in the alt protein industry such as cost, taste, texture, and clean label products, reveals AFN.

The fund will prioritize investments in deep tech that enable new technologies for alt proteins, alternative ingredients, using food as medicine, and addressing food security and waste reduction. The Kitchen Hub’s portfolio includes Aleph Farms, Meala, Mushfoods, Forsea, and Imagindairy.

According to Jonathan Berger, CEO of The Kitchen Hub, the anchor investor of the new fund is the Strauss Group, and it has already made three investments and has two others in the pipeline.

The Kitchen Labs

Additionally, The Kitchen Hub is launching The Kitchen Labs, an innovation center for startups with the support of the Israeli Innovation Authority, reports AFN.

At The Kitchen Labs, portfolio and food ecosystem startups will have access to laboratories specifically equipped to develop fermented and cell-based foods and expedite innovations. Moreover, it will include a food application laboratory networked with cameras to collaborate with The Kitchen Hub’s strategic partners, such as Danone, Givaudan, and Gea.

The Kitchen Hub has also partnered with the Hebrew University of Jerusalem, allowing professors to bring their students to The Kitchen Labs for real-life R&D experiences and internships. At the same time, startups gain access to the university’s new analytics center. 

Israel’s food tech environment

Regarding the slowdown in food tech investments in the last years, Berger pointed out that fundraising is challenging for startups, adding that it is essential for companies to adjust and change their strategies in response to new situations. They should also prioritize sales and profitability to appeal to potential investors, he told AFN.

Israel has identified the food tech field as one of the areas to prioritize as a solution for food security and its potential to strengthen the Israeli economy. For example, the Israel Innovation Authority is building a fermentation facility to offer research, development, and production services to local and foreign food tech companies.

Many Israeli companies, favored by the innovative space, are developing foods and ingredients such as yeast-derived proteins, realistic meat analogs, dairy proteins from precision fermentation, plant-based eggs, and cultivated beef, scallops, and eel, among many other alternatives to animal products.

Nir Goldstein, CEO of GFI Israel, said of alt protein in Israel: “Yet the threat to our climate persists, and it is clear – we can’t reach net zero emissions and create resilient food systems without shifting away from industrial animal farming. Alternative proteins are the only scalable solution, and the Israeli ecosystem is paving the way.”

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