The Blue Revolution Fund, which aims to support the restoration of marine ecosystems, aims to exceed its initial target of €75 million and promote more sustainable practices in the commercial production of seafood.
Hatch Blue’s Blue Revolution Fund has raised €93 million from investors including the European Investment Fund and the Irish Strategic Investment Fund. Sam Sommer on Unsplash
Hatch Blue, an Irish venture capital firm specializing in investing in sustainable aquaculture, has finalized €93 million in funding for the Blue Revolution Fund (BRF), which aims to contribute to the restoration of marine ecosystems. announced that it had ended.
Investors included the European Investment Fund (EIF) and the Irish Strategic Investment Fund (ISIF), which invested €20 million and €15 million respectively.
Georg Baunach, Managing Partner and Co-Founder of Hatch Blue, said of the EIF support earlier this year: “EIF’s commitment to the blue economy is encouraging, and its commitment will foster the growth of a sustainable aquaculture industry.”
The firm’s first fund, Hatch Fund I, closed in 2020. Having exceeded its goal of raising €75 million for its second fund, this is an encouraging sign that the investment community values the fund’s approach in promoting more sustainable practices. Baunach added. Commercial production of seafood.
“The aquaculture venture investment space has matured over the past decade,” Baunach said, adding that he has seen significantly more capital invested in startups and the industry innovating.
“The timing of the BRF is very important and seven years ago we probably wouldn’t have been able to do what we are doing now,” Baunach concluded.
The fund targets investments in next-generation farms, regenerative seaweed and bivalve farming, nutrition, enabling technology, health and genetics, and alternative seafood. To date, BRF has invested in six portfolio companies. The fund is in line with the goals of the EU Green Deal and is advised by the global environmental nonprofit The Nature Conservancy (TNC).
EU blue economy
The latest funding round comes at a time when 90% of marine fish stocks are overfished or fully exploited.
The aquaculture sector currently supplies more seafood than wild fishing, with production expected to reach 109 million tonnes by 2030, according to TNC.
“Historically, investors have been less interested in aquaculture for a variety of reasons, including production and supply chain complexity, lack of data, and real or perceived financial and environmental risks.” said Robert Jones, Global Director. Aquatic food systems for TNC.
“For many investors, this is unfamiliar territory with a steep learning curve. However, interest in aquaculture has increased more and more in recent years, and the rapid growth of this sector has made it inevitable for investment. It will be an attraction for homes and, if done responsibly, represents a huge opportunity to benefit both the local community and nature,” Mr Jones added.
Looking to the future
The fund has already invested in six early-stage aquaculture businesses and intends to build a portfolio, Jones said, adding that TNC will conduct ESG due diligence on all investments.
This includes progress towards the Fund’s impact goals, which focus on removing nitrogen from waterways, avoiding carbon emissions, producing a portion of sustainable seafood, creating renewable habitats and creating jobs. This will include measuring and reporting the situation, Jones confirmed.
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