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Opportunity


Chapul Farms develops projects with its team of global leaders in BSFL breeding, microbial, and living-systems engineering. Our process and technology are best-in-class and commercially ready to scale. Our existing client partner pipeline exceeds 20 high-value projects.

We develop infrastructure and technology, co-located with each partner, to valorize organic waste streams by feeding them to Black Soldier Farm Larvae (BSFL). These farms, in-turn, produce premium animal feed (BSFL) and premium frass fertilizer (BSFL poop).

In other words, we design and build modular insect farms that showcase the potential of closed-loop, carbon-negative food production.

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Opportunities Available:

  • Finance Chapul Farms (Prospective Investors) - Read Below
  • Become a Waste Stream Project Partner (Prospective Clients) - Learn More Here
  • Become an Off-Take Customer (Poultry Feed, Aquaculture, Frass Biofertilizer) - Learn More Here

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Fundraising Opportunity Overview

At this stage, Chapul Farms is fundraising for our holding company - the umbrella under which all of our various project development occurs. We realize that the traditional VC model does not work as well in this case: our projects do not benefit from prioritizing short-term holding co. valuation gains over achieving long-term value and steady cash flows. We also run the risk that a traditional raise does not capture the value of our stacked project pipeline. Finally, as of January 2021 we have achieved our first significant valuation inflection point via our signed contract with our first big project partner: T***n. 

For these reasons, we are exploring what type of financial partner understands the opportunity, aligns with our impact-driven approach to business, and is excited to discuss flexible financial partnership options. 

[insert clear fundraising ask & opportunity here] 

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What is Chapul Farms? 

A project development network - our team of global experts and our pipeline of organic-waste partners - building climate-critical solutions to upcycle organic waste with commercially-scalable insect technology.

We bring the top experts and technology in BSFL bio-engineering to our clients to build organic waste processing infrastructures (insect farms) on-site. We transform costly waste that would be diverted to a landfill (or that, in some cases, has no alternative "solution") into nutrient-rich larvae that can be processed into new organic products like feed-grade protein and fertilizer. Our facilities use black soldier flies to break down waste naturally, using their core biological function. Our team of experts applies the technology to scale and optimize these processes commercially. 

Click here for more information on our projects and process.

 

How is Chapul Farms different from Chapul? 

You may be familiar with Chapul - the cricket protein bar company Pat Crowley got Mark Cuban to invest in on Shark Tank in 2012. Chapul was born as a way to introduce edible insects into Western cuisine as a healthy and sustainable protein in response to the growing water crisis driven by agricultural water consumption. We created the first insect-protein food product in the US in the form of an award-winning, media-grabbing, and industry-catalyzing brand. Since, we've spearheaded action through the growth of our trade organization, de-risked the space through regulatory advocacy, and fueled impressive research projects. Chapul (the protein bar company) was never the end game - it was the catalyst. 

Beginning in 2015, Crowley utilized "Chapul 1.0" as a stable platform for recurring revenue, brand equity, and to continue to catalyze the growth of the industry. He refocused his attention on a tangential project in the insect industry leveraging Black Soldier Fly Larvae (BSFL) in the feed and waste upcycling verticals.

Chapul Farms, "Chapul 2.0," if you will, is a product of Crowley's past 5 years of work, building on the foundations he laid for the industry but differing widely from the "insects-for-food" play. While the insect industry gained attention from consumers, media, and capital, Chapul Farms developed by focusing on:

 

  • Connecting Top-in-Class Global Experts in Insect Bio-Engineering -including the minds behind EntoHack, Texas A&M University, and Virginia Tech; these leading academics and businesspeople are uniquely qualified to source, build, and apply ongoing innovations to projects relating to BSFL (breeding systems, infrastructure optimization, etc.) 
  • Developing Proprietary Insect Microbiology Technology -  through partnership with Fraunhofer, boasting the largest chemical compound and insect library. Pre-treatment "chemical cocktails" are used to optimize the BSFL as feedstock and frass (if they are to be sold as off-take) for nutrient profiles and to standardize batches. 
  • Partnering with Respected Project Development Teams - like NEXUS PMG, a global leader in impact project development. Their team is invaluable in de-risking new projects and will offer pre-project assessment, financing support, and infrastructure build-out services, lending critical support as our own team scales with a new "breed" of projects to develop. 
  • Lining Up Off-Take Partners - such as big players in poultry farming and aquaculture - to purchase the 2 products created from upcycling our partners' waste: animal feed (BSFL) and frass biofertilizer (BSFL poop). For clarity's sake, we have not included distribution revenue in this phase of Chapul Farms' business model, as we anticipate focusing on building our management team while successfully completing our early projects. But we'll have the opportunity to distribute projects off-take for additional revenue at any point. 
  • Investing in Ongoing BSFL Research - while our current BSFL systems are already premium organic waste solutions, the field is still in a high-growth phase. Live research continues to validate and optimize use-cases for BSFL technologies and we're in the middle of it all. 
  • Developing the Organic Waste Partner Pipeline - while beginning development on executed contracts to prove out and further de-risk our operations and build our library of case studies and data. Our existing partners will lend incredible validity to our efforts and are of substantial size; due to the confidential nature of these contracts, they exist behind our data room walls but can be made available upon request. 
Click here for more information on our story and team.

 

 

Why is Chapul Farms "Climate-Critical"? 

Climate change mitigation is a race against time. Above all else, we are impact-driven. We developed climate-critical infrastructure technology that solves across the most important enviro-metrics, including closed-loop agricultural production, organic waste management, carbon sequestration, soil rehabilitation, biodiversity regeneration, plant health, alternative protein production, and economic development.  

Insects leverage millions of years of microbiological evolution to process organic material into healthy protein and fat, add microbial life to agricultural soils, eliminate food waste, decrease agricultural GHG emissions, and decrease reliance on fossil fuel and unsustainable inputs to plant and animal agriculture.

Closed-Loop Agriculture

 

Not only are insects critical for zero-waste production systems, but the by-products produced - the BSFL for poultry and fish feed, and the frass (BSFL poop) biofertilizer, are both premium products because of their sustainability AND nutrient quality. 

[insert links to top papers on BSFL = better health outcomes for chicken + fish links]

Click here for more information on "Why Insects?"

What Solutions Does Chapul Farms Provide? 

We develop infrastructure and technology, co-located with each partner, to valorize organic waste streams by feeding them to Black Soldier Farm Larvae (BSFL). These farms, in-turn, produce premium animal feed (BSFL) and premium frass fertilizer (BSFL poop). 

Each project is highly customized based on the waste stream input to maximize the system's conversion efficiency. 

Our solution is perhaps the most impactful, deployable tactic to address the climate crisis. We use "insect technology" to close the loop in wasteful food production systems, while also producing valuable by-products that regenerate soil health, improve biodiversity, sequester carbon, etc. 

Chapul Farms understands the challenges impact-led businesses like ours might face in the current political economy - where big business might conflate "impact" with "lower returns". To accelerate the deployment of our climate-critical technologies, we've created win-win-win solutions for the players we interact with. We offer solutions for: 

  • Impact investors who want risk-adjusted avenues that allow them to put money to work in the low-carbon economy as soon as possible. At this time, we've by-passed the early-stage, high-risk opportunities and are well into the mature, technologically-sound, commercially scalable technologies. 
  • Companies with organic waste streams that want to see sustainability gains AND profit gains (this is where our insect technology's ability to not just eliminate organic waste, but to upcycle it into 2 premium commercial products is critical). 
  • Poultry and aquaculture farmers that want feed sources with better nutritional and environmental outcomes (from our BSFL animal feed off-take product). BSFL feed has additional benefits, like reducing dependency on livestock antibiotics. 
  • Agriculture farmers that want nutrient-optimized, soil-regenerative, biodiversity-restorative premium frass biofertilizer (a.k.a the second off-take product from our BSFL - the bug poop). 
  • Local communities (and the planet) that want to live in a more sustainable, progressive, and healthy future.  

Click here for more information on the global climate impact of our solutions.

What is Chapul Farms' Business Model?

Chapul Farms is a project development "holding company" - the connection point between our valuable partner waste streams, insect engineering experts, and service provision (i.e. infrastructure building) contractors meet to tackle waste challenges in the smartest, most sustainable, and profitable way. 

Below, the business model for Chapul Farms is laid out in 3 "Phases."You can follow the business growth plan to see: 

  • Phase 1 (Current): With the ongoing marginal revenue from "Chapul 1.0," and early revenue from the projects in our pipeline we've begun (January 2021), we have a flexible cushion to explore fundraising.
  • Phase 2: Initial funding will be used to onboard executive team-members to manage projects, bring services and revenue in-house, and expedite each project timeline.
  • Phase 3: After our team is settled and we have a few successful projects under our belts, we expect to open our revenue streams beyond the basic project development fees to include: distribution (of BSFL feed and frass biofertilizer), ongoing facilities operations & management (which we can elect to contract out or keep in-house based on resources), and biotech licensing (around insect living system microbiology and rearing technology; we're already growing our library and intend to expand our research capabilities with grant funding when time permits.) 

Phase 1 - Chapul Farms

Chapul Farms Phase 2

Phase 3 - Chapul Farms

 

How Will Chapul Farms Use Funds?

The business model outlines the 3 main phases of Chapul Farms. Flexibility has been a cornerstone of "Chapul 2.0", as it took several years to build the relationships that now make up the research, engineering contract, and waste stream pipeline partners. As it stands, Pat Crowley is working long hours to push projects forward. Timelines are based on the availability of colleagues at universities or otherwise employed, until either a round of funding for Chapul Farms or significant project revenue comes in. 

First funds will be used for: 

  • Executive Team Payroll 
  • Building the Chapul Farms Lab in McMinnville, OR

Onboarding the executive team will allow for Chapul Farms to efficiently develop multiple projects in structured timelines. Once the team is in place, development of the Chapul Farms lab will begin. Currently, we work in collaboration with Universities and with our contracted brains (that will join the executive team) to run feedstock analysis, develop biotech solutions, continue R&D projects, and support ongoing feed trials.  Constructing our own lab and offering these services "in-house" will not only take us off of "University Timeline," but will also allow capture greater percentages of these revenue streams.  

 [Pat to insert relevant details here]. 

Even without funding, we are able to work on large projects do to the nature of our network and the elasticity it provides - the ability to contract out portions of projects like feedstock analysis or ongoing facilities maintenance. The models provided for the Chapul Farm business model demonstrate where and how can scale operations based on available resources. 

What Markets Impact Chapul Farms?

Insect farming is a viable, immediately scalable global redirect of an extraction-based agricultural industry to a more holistic, closed-loop model. Our clients are our waste stream partners, off-take (BSFL and frass biofertilizer) are sold in the animal feed and agriculture markets, and we operate within the insect industry.

All markets are expanding. Also, private and public funding is being made increasingly available for low-carbon technologies like our own (we are actively pursuing grant, foundation, and prize money to subsidize our ongoing research). 

The list is long, as activity in the markets we operate in is still rapidly accelerating; some highlights include: 

  • Cargill announces collaboration with insect production companies to boost inclusion of insects in fish feed - Feednavigator.com, Jun 2019 
  • Ÿnsect (French Insect Farm) raises another $224m, with investors like Upfront Ventures and Robert Downey Jr., just a year after record-breaking $148m raise the previous year - TechCrunch, Oct 2020
  • Cargill says insects are most promising novel feed ingredient - Undercurrent News, Dec 2020 
  • BetaHatch closes $9.3m Series A funding to break ground on largest US insect farm - AgFunder, Dec 2020

Insect Stakeholders

While the information above more succinctly illustrates the market trajectory for our insect technologies, we've included overviews below addressing the market sizes of the spaces we operate in: 

  • Black Soldier Fly Larvae (BSFL): The global BSFL market is expected to grow at a CAGR of 33.3% from 2019 to reach $2.57B by 2030.1 Current growth in the BSFL market has been accelerated by recent regulatory approvals in the United States (AAFCO) and in Europe (EC) for use as an ingredient in animal feed. 
  • Organic Waste Solutions: $218 billion is lost to landfills in the form of food waste every year. Food waste has a combined social, environmental and economic cost of $2.5 trillion annually, according to the United Nations. The U.N. identified food waste as one of the most impactful challenges to tackle. Growing interest and investment culminated in over $125 million in venture capital investments and $134 million in foundation giving in the first 10 months of 2018 alone (2018 US Food Waste Investment Report). 
  • The Global Waste Management Market Size: $2,080.0 billion in 2019; is expected to reach $2,339.8 billion by 2027, registering a CAGR of 5.5% from 2020 to 2027 (Allied Market Research).
  • Animal Feed (General): The demand for animal feed is a >$400B opportunity for innovation in agriculture. 
  • Aquaculture: (>$100B feed market) The fastest growing food production system with significant impacts to oceanic and riverine ecosystems. A primary feed input is fish meal - a volatile and diminishing resource. Fishmeal is declining in supply 1% every year. Rapid future growth is expected to be influenced by the high growth of aquaculture feed requirements, expected to grow 2.5x in the next 8 years, 2 despite its reliance on ocean-caught fish meal as a primary feed ingredient: a declining resource with a historically volatile price. Insect protein is a viable alternative showing acceptance across multiple species (eg. salmon, trout, shrimp, tilapia) at high inclusion rates (>50%) (Meticulous Research 2020; Reuters 2018).
  • Poultry Feed: Next fastest growing feed demand segment, from large-scale poultry livestock feed and backyard chicken coups. The poultry feed market ~ $125B). 
  • "Sustainability Market": >$125.5M as "Big Food" is increasingly held responsible for environmental impact. The top 25 U.S. food & beverage companies have lost an equivalent of $18B in market share between 2009-2014. 66% of global consumers now say they are willing to pay more for sustainable goods. The future is in high-scale commercialization of healthy food/feed sources that are produced more efficiently with less environmental impact (USDA, USDA, NYTIMES, OPEN MARKET INSTITUTE, CROATAN INSTITUTE; NIELSEN). 

It's worth noting that BSFL are not just fishmeal or poultry feed alternatives. BSFL is a premium feed product not just because of its sustainable production methods, its lowering of feed transport costs, its independence from seasonal growth cycles and short breeding cycles, its contribution to better animal health outcomes and decrease in reliance on antibiotics, but also BSFL is the subject of numerous ongoing studies that demonstrate things like:

  • Black soldier fly (BSF) is not known to carry any pathogenic agents
  • Larvae can grow quickly and have an excellent feed rate. They can consume 25-500 mg of fresh matter/larva/day and feed on a wide range of substrates ranging from manures to food waste.
  • A grow-out cycle takes 15 days to an average larva weight of 0.25g under optimal conditions (30oC) and the substrate/ waste load reduced by up to 70 percent (dry matter basis).
  • The maggots have also been shown to remove pathogenic bacteria, reduce waste odors and to inhibit nuisance housefly oviposition; all valuable secondary sanitation outcomes.
  • The larvae have a high nutritional value; contingent on the substrate they were bred on, with crude protein levels ranging from 28 to 48 percent, and lipid levels from 12 to 42 percent. With the exception of omega-3 fatty acid, the lipid profile is broadly similar to fish meal and potential exists to augment fatty acid through the use of an appropriate feeds e.g. fish-offal. The essential amino acid profile of the insect meal meets the broad requirements of tilapias simplifying dietary formulation requirements.

For more information, please see our pages on global climate impact (here) and why insects (here). 

Insects & Reg

 

Who is the Chapul Farms Team? 

We are excited about what is an all-star cast coming together with significantly more industry experience than we've ever seen, across food, poultry, aqua, pet, insect living systems design, bioengineering, related applications, and ongoing R&D. 

Executive Team: 

Patrick Crowley 

Pat Crowley - M.Sc., Founder/CEO Chapul - 8 years experience in insect agriculture industry development, with expertise spanning product RD, regulatory compliance, innovation, marketing, supply chain development, and infrastructure project development.

 

Patrick Crowley 

Michael Place - Current: CEO of EntoHack, Post-Funding: CTO of Chapul Farms - BSFL Expert. 20 years of leadership in a broad range of design, integration and project management delivering complex technical systems. Built and leads a technically focused team serving projects at the leading edge of commercial scale insect agriculture. Has led or consulted on projects on five continents at the forefront of the field.

 

Edit photo 

Aly Moore - Current: Bugible, Post-Funding: CBO of Chapul FarmsFounder of Bugible - most visible brand authority in edible insects; expertise in customer channels, market strategy, and strategic partnerships. Featured 90+ times in media (including Forbes, Bill Nye, LA Times). Largest network of industry companies, investors, and academics. Will manage Chapul Farms strategic ops organization and project management, internal and external PR and communications, and growth strategy. 

 

Tyler Isaac 

Joe Matta - Current: FEWL Solutions & GrowHaus, Post-Funding: CFO of Chapul Farms - Expertise in project development and investment opportunities at the intersection of food, energy, water, and land. Leverages resilient infrastructure and creative financing to change these systems. Studied nexus of food, energy, water, and land in need of creative ownerships models and financing to being transformative project opportunities into reality. 

 

Tyler Isaac

Tyler Isaac - Current: Senior Aquaculture Scientist at Monterey Bay Aquarium, Post-Funding: Head of Sales, Grants, & Aquafeed at Chapul Farms - Experienced in food production, culinary industry, and ecological sciences. Specializes in natural resource management and entrepreneurship alongside extensive experience in aquaculture production across species and regions.  

 

Max Breitensteiner 

Max Breitensteiner - BSFL Expert, Living Systems Engineer at Chapul Farms Technical system designer, technology integrator and more than a decade of experience in every aspect of farming black soldier flies at scale. Delivers ongoing training and problem analysis virtually and on-site leading to improved operational efficiency of numerous clients and research collaborators alike.

 

Chujun Li

Chujun Li - Current: Guangzhou Unique Biotechnology Co. Ltd, Post-Funding: Chapul Farms BSLF Breeding Expert - PhD candidate Texas AM, Entomology. M.Sc. Wageningen, Entomology. BSFL breeding and genetics expert. BSFL technician running proposed project colony trials.
Chujun Li

 

Jeff Tomberlin - Current: Professor, Presidential Impact Fellow & AgriLife Research Fellow at Texas A&M University, Post-Funding: Head of R&D at Chapul Farms - PhD, Entomology. One of the foremost global experts in BSFL. Oversees laboratory facilities to be used in development phase of life cycle assessment. Vast experience in scaling of BSFL from bench-top to commercial scale. 

 

Project Development Team: 

Tyler Isaac Ben Hubbard - CEO at Nexus PMG

Karen Grosskreutz Karen Grosskreutz - Grants, Community 

Ramsey McPhillips Ramsey McPhillips - Farmer, Zero Waste McMinnville


Development Partners:
  1. Black & Veatch
  2. Cross River Partners
  3. Nexus PMG
  4. BioCarbN
  5. EntoHack7G
  6. Recology
  7. Fraunhofer

Sales/Business Development:
Mark Napier (ag sales experience)
Pat Crowley
Lance Pearson (aquafeed sales)
Abe Minkara (Mark Cuban BD)

Operations:
COO - tbd
WWS (Mark Napier)

Science/RD:
Michael Place - industry expert in BSFL
Dr. Reza Ovissi - aquaculture feed trials and product development
Dr. Ryan Yamka - pet feed trials and product development

Legal:
Polsinelli
 
Additional: 
Jeff Wolcott - Product Distribution, VP Sales
EntoHack 7G
Recology
Fraunhofer
Bugible
Texas A&M University
Virginia Tech University 
[insert Dr. Rez + anyone else + advisors + street cred]
Partners/Experience [ADD MORE + PRESS?]


Alternative Protein Corp, (Alternative Energy Investments (AEI) Limited) Indonesia: pilot production optimization, breeding, cage design, neonate handling, bioconversion, feed formulation, full system design, data collection and management system, custom designed separation technology (vibrating hopper) 2017-2019

Future Green Solutions (Luke Wheat, Founder), Australia: original pilot and production technical system design, ongoing breeding consultation, post processing tech strategy (lipids, chitin) 2015-present

SPR /JM Green (Fengchun Spring Yang, Michael Wu, EVO Consortium CoFounders) Xian, China: Technical partner/supplier (breeding tech (LED lighting arrays, breeding cages) full systems, data sharing/analysis, technical drawing) 2017-present

NutriBank/Nutri Industries, (Jongju Hong, Jason Kim) South Korea: Onsite training, pilot system design, technology assessment, production design, root cause analysis of issues (breeding), data analysis (breeding, bioconversion, alternative feedstocks) 2016-present

Malt Ento (Dean Smorenberg, Founder) Cape Town, SA: Training, consultation, technology assessment, procurement, technical facility design (no HVAC), scale up, root cause analysis, rapid feedstock change (during production: COVID related), custom cage design. 2016, 2019-2020

ProEnto (Spain): Foundational training, consultation, market analysis, feedstock selection, system design. 2019-present

LivinFarms Austria, Hong Kong: Foundational training, consultation, market analysis, feedstock selection, system design. Customized farm scale integrated design for high net worth client 2017, 2020

Susento: (Elsje Petersje, Michael Woods CoFounders) Cape Town/Stellenbosch Univ collaboration: Technical collaboration, previous customer for pilot scale offtake of larvae and frass (during production gaps in 2018-19)

Insecco: Technical and system design consultation pre-funding. 2019

EntoBel (Gaëtan Crielaard, Co Founder) Viet Nam/Singapore: troubleshooting extreme humidity issues 2016

Why Chapul Farms? 

BSFL facilities require a comprehensive integration between the biological system of a BSFL colony, and infrastructure engineering design to support this living system. Biological factors such as feed conversion rates, grow out days, post-processing design, fertility rate, and feedstock pretreatment vary greatly based on feedstock inputs, and have significant influence on the infrastructure design and overall project financial model.

  • *Insert "competition" + pipeline + expertise
  • *Insert from asana accolades. 
  1. Validate credibility
  2. WHY OUR SOLUTION?? (b/c of frass?)
  3. ACTUAL QUANTIFICATION
    1. Microbiology; computational biology
    2. Biotech Path > Discovery, development... we are more nature-based.
    3. Metabolic.
    4. Grounded experts in sustainability at a broad level.

* WHY US? 

  1. $0COGS - just the best 

    * WHY BSFL (just better health outcomes for fish, for chickens. link to research) 

    In Progress: 

LINK to R&D Page + More on Team Page 

Accolades & Media 

  • [insert pertinent chapul / shark tank]
  • ?? EnVest invitation (Nov 2020) 
  • Wonderful CO. POM advancement...

  • Portland's VertueLabs Accelerator Program "Best Company" Prize - Top comment on strength of team. 
  • The F3 Challenge - Carnivore Edition $300k Prize - Featured team, "Founded in 2012, U.S.-based Chapul Farms, farms and formulates functional proteins from black soldier flies for food and feed ingredients by raising its soldier fly larvae on agricultural by-products, primarily for salmonid feed. Chapul Farms is seeking sales partners for the challenge," (Jan 2021).