Animal-free dairy startup Imagindairy secures additional funding

Photo by Yaniv Koppel.

FoodTech startup Imaginedary Ltd. (Tel Aviv, Israel), which is a developer of animal-free milk proteins, has raised an additional $15 million in its extended seed-round on top of the $13 million it had originally brought in November of 2021. With a total investment capital of $28 million makes this one of the highest-earning seed rounds in the alternative protein space, according to Imaginedairy.

The funding was led by Target Global and joined by the company’s existing investors Strauss Group, Emerald Technology Ventures, Green Circle Foodtech Ventures, Collaborative Fund, New Climate Ventures, and FoodSparks by PeakBridge. Imaginedairy creates animal-free proteins from microorganisms using proprietary precision fermentation technology, allowing the company to produce a wide spectrum of dairy analogs, from raw milk to cheese, without the use of animals. These dairy proteins are non-GMO, cholesterol-free and possess the same flavor, texture, functionality, and nutritional value of its animal dairy counterparts.

The company’s proprietary platform significantly amplifies protein expression, allowing for very cost-effective production of animal-free milk proteins. Cost is one of the biggest hurdles in alt-dairy protein production.

“This extremely successful seed round reflects a strong vote of confidence in Imagindairy and its vision to lead the animal-free dairy industry,” enthused Eyal Afergan, co-founder and CEO of Imagindairy, in a press release. “This substantial injection of capital will serve to advance our ability to make true dairy alternative products a day-to-day reality.”

The funds raised in this seed round will be used to accelerate research and development efforts to launch a range of animal-free dairy products, as well as to help attract additional talent to its expanding workforce.

“We are excited to be able to back the Imagindairy team who have made incredible inroads in creating dairy products that don't rely on industrialized animal agriculture but offer the same level of functionality and nutrition,” said Shmuel Chafets, executive chairman and founder at Target Global. “It is becoming increasingly clear that, given the climate crisis and growing shortage of food, our dietary patterns and habits must change. Animal-free dairy has the potential to become one of the most environmentally impactful industries on the planet. We are strong believers that the Imagindairy team’s vast experience in manufacturing at scale, paired with the cutting-edge technology they have built, will be transformational for this space." Target Global’s contribution to this round marks one of its first investments in the foodTech industry.