The Munich-based agtech startup Farminsect enables farmers to produce their own protein feed from regional waste using insects. This saves farmers the import of soy and fishmeal, saving them up to 20 percent of their feed costs, as the founders revealed in an interview. The startup has now completed a six-figure seed financing round.
Three business angels are helping Farminsect launch its commercialization with a seed financing round. Overall, the startup has closed a financing round in the mid-six-figure range. The exact amount has not been disclosed. With the raised capital, the startup plans to set up its first pilot plant at one of the largest aquaculture operations in Bavaria.
The business with fly larvae
Since 2017, six insect species have been approved for use as animal feed in the EU. Farminsect specializes in the black soldier fly. Its larvae can process a very broad range of feed and are therefore well suited for the utilization of residual materials, such as crop residues or leftovers from food production. Farminsect offers farmers an automated machinery system for insect production. Farmers therefore require no prior knowledge of insect breeding. It takes about a week for a batch of fly larvae to mature. The larvae can then be fed directly to livestock or dried for storage. In addition to the larvae, the process also produces high-quality compost, which helps farmers improve their soil quality.
The startup also places particular emphasis on the regional origin of its waste. To ensure this and enable seamless traceability, Farminsect has developed an IT platform that relieves farmers of this process. It is connected to a variety of sensors and guides the farmer through the entire insect production process.
"In the EU, billions of tons of food and crop residues are generated every year that are not yet put to good use. We want to leverage this potential,"
explains Farminsect founder Thomas Kühn.
Circular economy with Farminsect
"Typically, over 90 percent of soy and fishmeal must be imported into the EU. This creates a strong dependence of feed prices on world markets. In the last ten years, feed prices have more than doubled. Since feed accounts for the majority of operating costs for most farmers, further price increases will force many farmers to close their businesses. In addition, soy and fishmeal are an ecological disaster and are destroying our rainforests and oceans."
explain the founder in the Interview with Munich StartupBy pursuing a circular economy, Farminsect enables regional and secure agriculture that is independent of global supply bottlenecks. This puts the startup in line with the EU's goals of becoming less dependent on food imports and promoting a circular economy.
