Lab grown meat, also known as cultured meat, has emerged as an exciting investment opportunity in recent years. As the technology to produce real meat in a lab improves and costs come down, many expect this sector to transform our food system. For individuals interested in investing in the future of food, lab grown meat offers lots of potential upside. In this article, we’ll walk through the key steps for beginner investors to gain exposure to public and private companies in the lab grown meat sector. We’ll cover how to analyze the competitive landscape, research investment options, and assess risks and regulations in this nascent industry. With the right approach, individual investors can contribute to the growth of lab grown meat companies and potentially see strong returns over the long run.
Understand the competitive landscape of lab grown meat
The lab grown meat sector currently consists of several dozen startups and a few public companies competing to commercialize the technology. Key players include Memphis Meats, Aleph Farms, Future Meat Technologies, Eat Just, Mosa Meats, Meatable, Higher Steaks, and Wild Type. On the public markets, Israeli company MeaTech 3D recently listed on the Nasdaq exchange. In addition, some large food companies like Tyson Foods have invested in lab grown meat startups. When researching the competitive landscape, look for companies with strong scientific teams, demonstration of progress in lowering costs, and clear paths to regulatory approval. The pace of innovation will be rapid so pay attention to R&D milestones like introducing new cell lines and bioreactor designs.
Evaluate public market investment options in lab grown meat
For investors who want exposure to publicly traded lab grown meat companies, the current options are limited. MeaTech 3D, as mentioned previously, is the pure-play lab grown meat stock available on major exchanges. Financial metrics like revenue and profits will be limited in the near term, so assess the company’s technology, progress on cost reduction, and cash reserves. Outside of dedicated lab grown meat companies, look into food sector ETFs like PBJ which may pick up exposure to large corporations that have invested in the space. Also research direct investment platforms like AgFunder which provide access to private deals in food innovation. While not a perfect substitute for individual stock picking, these alternatives let you invest in the broader trend towards alternative proteins and meat production methods.
Consider investing in private lab grown meat startups
Many of the most promising lab grown meat startups are still private companies. Research the leading players and see if any are open to taking on direct investments via equity crowdfunding platforms or individual check writing. The minimums will likely be high so pooling capital as an angel investment group can help. Make sure to thoroughly vet the technical capabilities, go-to-market strategy, and economic model of any private companies you consider investing in. Reach out directly to management teams to ask questions and assess the founders’ credibility and business acumen.
Understand regulations for lab grown meat
Since lab grown meat involves new food production methods, regulatory oversight is still taking shape. Investors need to monitor regulations from bodies like the USDA and FDA which will impact the route to market for companies. The approval process for cultured meat production facilities and product labeling requirements could create significant uncertainty in the near term. However, the long term trend of supportive regulations for clean and sustainable meat alternatives appears positive. Overall, it’s wise to incorporate regulatory risk into diligence on any particular lab grown meat investment.
Investing in the emerging lab grown meat sector requires research on the key companies and trends in this technology-driven industry. Both private startup investments and public market stocks can provide exposure. As costs come down and regulations evolve, the growth opportunities are substantial in the decades ahead.