Lever VC’s investment strategy in alternative proteins focuses on cost-reduction, tech gains & partnerships

As an early-stage venture capital firm, Lever VC has established itself as a critical player in the sustainable food and agriculture sectors, with a particular focus on alternative proteins that it believes are poised to lead the market.

Cooney emphasized the firm’s broad investment strategy, which includes “upstream, more technology-driven companies, but also in brands that are in market, and those in between, like ingredient providers.”

Lever VC’s YoY growth highlights strategic investments amid industry-wide funding decline​

This diverse approach has enabled Lever VC to support companies at various stages of commercialization, with the collective portfolio showing year-over-year sales growth.

Cooney highlighted that, on average, the companies in Lever’s portfolio have about 45% annual growth in sales.

Lever VC’s active investment is in contrast to the overall slowdown in private funding for alternative proteins​, according to data from Net Zero Insights as cited by Good Food Institute. Last year, private investments in alternative protein companies fell 44%, which was similar to a 42% decline YoY in global venture funding across adjacent sectors, including climate tech (-40% YoY), food tech investments (-61% YoY) and fintech investments (-50% YoY).

Tech versus brand: different playbooks for growth​

For early-stage technology-driven companies, Lever looks for businesses that can progress their technology, reduce costs and establish partnerships that will allow them to scale effectively, Cooney explained.

“We want to see them go through further validating that [technology], bringing down the cost curve … starting to scale up production to pilot scale, and then beyond that, get initial buyers,” he noted.

This process is crucial for these companies to transition from prototypes to market-ready products that can attract corporate partners and generate early revenue, he added.

On the brand-driven side, Cooney emphasized the importance of quality and marketing. He pointed out that while some of the most significant quality improvements are still behind the scenes, there are companies that are rigorously testing products to ensure they meet consumer expectations before launching.

“Some brands are doing a lot of quantitative and qualitative consumer testing for any new potential products they roll out before they roll them out,” Cooney said, highlighting the importance of a consumer-centric approach in the current competitive market.