In this file:
· Impossible Foods Looking to Raise More, No IPO in Near Future
· No near-term IPO for Impossible Foods, CEO says
Impossible Foods Looking to Raise More, No IPO in Near Future
Sophia Kunthara, Crunchbase News
October 3, 2019
Plant-based food startup Impossible Foods plans to raise more money, just not through an IPO any time soon.
The startup’s major competitor Beyond Meat went public earlier this year and the demand for plant-based food is growing.
Beyond Meat’s stock has soared on the stock market. The company priced its shares at $25, and its stock closed 163 percent higher on its first day of trading. Beyond Meat was trading at $146.29 around midday Thursday. Its IPO was wildly successful, and shows the market has a hunger for plant-based alternatives.
But still, Impossible Foods CEO Patrick Brown said Wednesday that going public isn’t in the cards for the company in the near future.
“At this point it’s not something that we need and we can take our time,” Brown said at TechCrunch’s annual Disrupt conference.
Impossible Foods has raised $687.5 million in total funding and its investors include Temasek Holdings and Horizons Ventures. The company last raised its $300 million Series E in May.
It’s a little odd that the company wants to raise more privately when it appears well-funded and raised money just a few months ago. But more cash could help it scale, develop new products (Brown mentioned that Impossible Foods has made a steak prototype, but it’s not trying to scale it) and beef up before exploring an IPO.
The Hunger For Plant-based Alternatives ...
No near-term IPO for Impossible Foods, CEO says
Sarah Perez, TechCrunch
October 3, 2019
The market was receptive to meat replacement products, as the Beyond Meat public offering recently indicated. But rival meat alternative maker Impossible Foods doesn’t see an IPO on its near-term roadmap, according to its founder and CEO, Patrick Brown.
Speaking to the audience at TechCrunch Disrupt SF 2019 on Wednesday, Brown said the company has its hands full growing its business, and going public isn’t something it wants to do anytime soon.
Asked onstage how Impossible Foods will get the money to achieve its goals as a company, and if that meant an IPO was coming soon, the exec agreed that, yes, Impossible Foods does have hugely ambitious goals that require a lot of resources. But it’s not going to the public markets to acquire them, at this point.
“We’ll have to get those resources either from investors, or from getting our profit margins to the point where we can scale at the velocity that we want to scale with the profit we make from our business,” said Brown. “It’ll be a while before we’re at that point. So we’ll definitely have to raise more money, I would say we are not looking in the near-term future toward an IPO,” he continued.
“As anyone here probably knows, there’s a lot of complications that come with that. We have our hands full, growing our business, doing our core job. And we have great investors, and we have a lot of private investors who are willing to bet on us and so forth,” Brown pointed out.
“So at this point, it’s not, it’s not something that we need, and, and we can just take our time about it, basically,” he said.
The exec also laid out some of the company’s longer-term plans for how he sees the product line growing.
Impossible Foods chose to focus on beef as its initial product because beef production, by far, has the most destructive impact on the environment. However, the company says its future is in R&D — a team that has 120 people today, which Brown says he plans to double.
Impossible Foods had already made steak prototypes, but isn’t near scaling in that area, the CEO said...
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