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Highlights
- Sustainable food companies are becoming popular due to awareness of environmental issues.
- The US equity markets will witness a lot of IPOs in 2021, and the momentum is expected to continue next year.
- Retail investors often choose pre-IPO stocks as they have prospects of giving higher returns.
2021 was the year of initial public offerings (IPOs) as many companies went public in the US equity markets.
In the United States, companies often make their debut on the New York Stock Exchange (NYSE) or the Nasdaq Stock Market.
It is believed that 2022 will also witness public debuts of private companies throughout the year as the economy seems to be recovering from the COVID-19 pandemic losses.
On that note, we are exploring two sustainable food companies that could go public next year:
Future Meat Technologies
On December 17, 2021, the Jerusalem-based biotechnology company raised US$ 347 million in a Series B funding round, and ADM Ventures and other venture capitalists led it.
Future Meat Technologies is a sustainable food company and produces cultivated meat from animal cells.
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Established in 2018, Future Meat was started to eliminate the slaughtering of animals. The company claims that traditional meat production has become unsustainable, and it wants to address this issue.
After the latest funding round, Professor Yaakov Nahmias, who is the founder of Future Meat, said that the company is looking to come up with a large-scale production facility in the US sometime next year.
Future meat claims that its technology can reduce operational costs, and it has a scope of a massive expansion of operations.
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As the company seems to have rapid growth plans, Future Meat could opt for an IPO in the US equity markets. Many Israel-based companies trade in the US stock markets, and it may get investors' attention if it chooses to go public.
Good Catch
Based out of Pennsylvania in the United States, Good Catch was started in 2016 to provide plant-based seafood alternatives.
Good Catch offers plant-based seafood products like vegetarian shredded tuna, fish patties made from lentils and chickpeas, among other ingredients.
Recently, People for the Ethical Treatment of Animals (PETA) gave Good Catch the '2021 Company of the Year Award'. PETA said that the company could change the seafood industry's face as it causes massive environmental damage due to giant trawler fishing nets.
According to reports, Good Catch has raised US$ 77 million funding-to-date, and it could consider raising gross proceeds through an IPO to expand business operations.
Bottom line
According to a Research and Markets report, the global ethical food industry is expected to increase up to US$ 727.86 billion by 2025 at a compound annual growth rate of six per cent.
In 2020, the industry was valued at around US$ 543 billion.
Also Read: Does Eat Just have an IPO plan & can you buy its stock?
