EU’s €20m helps aquaculture investor reach €75m target

Sustainable aquaculture venture capital manager Hatch Blue has announced the successful second close of the Blue Revolution Fund, its second investment fund.

Ireland-based Hatch said the Fund has now secured a total of €75 million (£64m) in funding, including €20m from the EU’s European Investment Fund (EIF).

“We are thrilled to have now met our fundraising target of €75m and expect to exceed it in the next months,” said Georg Baunach, managing partner and co-founder of Hatch Blue.

“Though the closing took longer than anticipated, we are now exceptionally well-positioned to support entrepreneurs in our sector. As a specialised fund, our approach is to collaborate closely with teams where we can offer significant value. The expertise and extensive network within our investment team, the broader Hatch Blue group, and our extended ecosystem have been instrumental in attracting the confidence of our LP.

“We’re particularly pleased to see increased commitments from institutional investors compared to the first close, as their involvement is pivotal for fostering a robust impact investment ecosystem.”

Full alignment with EU

Along with EIF, there has been investment from the Irish Strategic Investment Fund (ISIF), and Germany’s Rentenbank.

EIF chief executive Marjut Falkstedt said: “We are very glad to support the Blue Revolution Fund in its mission to drive innovation and sustainability in the aquaculture sector, with the backing of the InvestEU programme. This investment is in full alignment with the EU’s commitment to fostering a blue economy that promotes economic growth while protecting our marine ecosystems.”

Cathal Fitzgerald, ISIF’s senior investment director for food and agriculture, said ISIF’s commitment to the Blue Revolution Fund will drive an opportunity to tap into the potential of the many Irish companies developing innovative ways to improve the sustainable use of marine resources.

Initial investments

The Blue Revolution Fund has already made initial investments in aquaculture innovators. These are:

DeNova: A Canada-based single-cell protein (SCP) producer that aims to replace soy protein and fish meal in aqua feeds, addressing crucial environmental challenges in the aquaculture sector.

Wholechain: A US-based company with a software-as-a-service business model-based traceability solution. Wholechain’s solution caters to multiple protein and non-protein products, offering comprehensive traceability across various supply chains.

CageEye: A Norwegian company focused on improving feeding processes in aquaculture. CageEye utilises echo-sounding devices to identify the feeding behaviour of farmed salmon in real time.

ChucaoTec: An Irish-Chilean company producing nanobubble oxygenation technology for the salmon and shrimp farming sectors. The Fund says Chucaotech’s innovative technology is set to revolutionise oxygenation practices in aquaculture, enhancing sustainability and efficiency.

It has also invested in New School Foods, a Canada-based food technology company that is focused on developing plant-based seafood alternatives. New School Food’s unique technology is said to deliver an animal-like structure and a raw-to-cooked cooking experience.