Can Cell-Cultured Seafood Help Stem Overfishing as Global Demand Increases?

Kate Wheeling
Kate Wheeling is a freelance environmental journalist based in California. You can find more of her work in outlets including Outside, Medium, Hakai Magazine and Smithsonian Magazine. Follow her on Twitter @katewheeling.
Can Cell-Cultured Seafood Help Stem Overfishing as Global Demand Increases?
Lead Image by Ian Hurley

In the fall of 2017, Lou Cooperhouse took the stage at the Hawaii Agricultural Foundation conference to talk about what he saw as the trend that would lead to the total transformation of our food supply: alternative proteins.

At the time, Cooperhouse — whose long career in food innovation includes founding and running Rutgers Food Innovation Center, an incubator for startups — was working with multiple companies making plant-based products. (Impossible Foods Inc., of Impossible Burger fame, was a client.) But the real transformative technology, in his view, was the use of cell culturing to make meat from animal cells — products that would have the look, feel, taste and nutritional content of real meat, because that's exactly what they are.


The first cell-cultured hamburger — a five-ounce patty that cost more than $300,000 to produce — was made in 2013, and a slew of beef and poultry-based products were under development. "I said to myself, that's amazing technology," Cooperhouse said, "but the real home run, the holy grail, would be seafood."

Chris Somogyi, an entrepreneur in the audience that day, agreed. Before the year was out, Somogyi and Cooperhouse had teamed up with Chris Dammann to launch BlueNalu, a seafood-focused cell culture company. Since its founding in 2017, the San Diego-based company has become the first to create stable cell lines from a variety of fin fish. (Both Somogyi and Dammann have since left the company.)

The cell-based protein industry is booming. Dozens of startups trying to grow food in labs have formed in the United States in recent years, and they raised more money in the first quarter of 2020 — some $189 million — than in all previous years combined,according to the Good Food Institute, a nonprofit that advocates for alternative meats.

Lou CooperhouseBlueNalu President + CEO Lou Cooperhouse

So far, only one company has made it to market: theU.S.-based start-up Eat Just received regulatory approval to sell it's cell-cultured chicken at a restaurant in Singapore in late 2020. One of the major obstacles for many companies has been cost, and most are still working to bring down the price of the raw materials, scale-up production and gain regulatory approval. A few more are expected to hit the market this year. Byone estimate, as much as 35% of meat will be cultured by 2040, buoyed by efforts to reduce carbon emissions, antibiotic use and the risk of disease.

But to Cooperhouse, seafood, more than any other industry, is in need of a transformation: Overfishing has pushed fisheries around the globe to the brink of collapse. Ocean acidification, heat waves, plastic pollution, and more threaten the stocks that are left. Research suggests that as many as60% of the marine species humans fish are at a high risk for extinction in the coming years. Yet demand continues to rise since at least the mid-20th century.According to the United Nations's Food and Agriculture Organization, the rise in global fish consumption since 1961 has outpaced both population growth and increases in production of other meat products.

"Our global supply gap is only getting worse, our supply is increasingly compromised with mercury and environmental pollutants and plastics, and we just can't feed the world," Cooperhouse said. But in cell culture technology, he saw an opportunity to create a stable supply of one of the world's most sought-after protein sources, easing pressure on our oceans and feeding the world at the same time.

In January, the 40-person company announced it had raised $60 million in debt financing led by Rage Capital, bringing its total fundraising up to more than $84 million. BlueNalu's other significant investors include New Crop Capital, Lewis & Clark Agrifood, Siddhi Capital, and Rich Products Corp. The latest round of funding is expected to see the company through the next two phases of its development, according to Cooperhouse: FDA approval, and the initial launch of its products in select restaurants in San Diego.

It's too soon to say which restaurants those will be.

After market testing in restaurants, BlueNalu plans to scale up production with the construction of more factories, creating jobs and providing consumers with a third option to farmed or wild caught fish.

Already, the company is building out its facility in San Diego. By the end of the year, it will be capable of producing several hundred pounds of cell-cultured fish per week.

The Good Food Institute, which has called on the Biden administration to allocate some $2 billion toward research and research facilities for alternative proteins, believes that the production of plant-based and cell-cultured meats "will spark a renaissance in American manufacturing."

BlueNalu fish

Critics of cell-cultured meat worry that the product could put farmers and fishermen out of work, but BlueNalu claims that it is carefully choosing its products with these issues in mind. Its first product to market will be mahi-mahi, a nod to the company's Hawaiian roots, and the most practical choice for a company that's trying not to compete with U.S. fisheries.

"We're specifically targeting seafood that are typically imported, that are high in mercury or other contaminants, or they can't be farm-raised at all," Cooperhouse said. A cell-cultured Bluefin tuna, a species that is both overfished and high in mercury, will follow. "The bottom line is there's a fundamental global supply chain gap. If we don't find another solution, we will be out of fish or it will be so high priced it will be unattainable."

The National Fisheries Institute, a nonprofit focused on seafood sustainability, is supportive of cell-cultured seafood as part of the solution. "As the global demand for seafood increases, so will the need for innovative solutions like cell-cultured products," an NFI spokesperson said by email.

The final challenge for the first cell-based fish company is marketing. To prepare for direct-to-consumer sales, BlueNalu worked with the Alliance for Meat, Poultry and Seafood and the NFI to agree on a term that would allow the public to distinguish between wild-caught, farmed and fish grown from fish cells: cell-cultured. The term can be used more broadly to distinguish proteins from animals, and those made from animal cells.

As CEO, Cooperhouse has worked to distance BlueNalu from earlier cell-cultured products presented to the public as meat grown in petri dishes. BlueNalu's facility is a food factory, he says, not a lab.

"We are first and foremost a food company," he said. "BlueNalu is a culinary driven company. We are making great-tasting seafood products with all the sensory benefits, all that you love about seafood, but without the mercury, microplastics or pollutants."

Lead Image by Ian Hurley.

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🏰 Disney's Epic Investment Stands Out Amidst Gaming Industry Layoffs

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

🔦 Spotlight

In the midst of widespread gaming industry layoffs, a glimmer of positive news emerges as Disney announces a significant move: a $1.5 billion investment in Epic Games. 🏰💰🐭

Image Source: Disney

Disney's $1.5 billion investment in Epic Games, disclosed late Wednesday, signals a strategic alignment aimed at expanding the success of "Fortnite." The deal enhances Epic's growth prospects after financial setbacks, including layoffs, and strengthens the partnership between the two companies. With Disney gaining a larger equity stake in Epic, the collaboration will broaden the integration of beloved Disney franchises like Marvel, Star Wars, Pixar, and Avatar into the game, potentially boosting its appeal and longevity. This significant investment underscores Disney's commitment to interactive entertainment and signifies a shift towards games as a primary revenue stream, aligning with the growing trend of digital engagement among younger demographics. Moreover, the potential for crossover sales of physical Disney products within "Fortnite" and the exploration of new content distribution channels are just some of the opportunities arising from this partnership.

For LA tech, the Disney-Epic Games partnership represents a validation of the region's burgeoning tech and gaming ecosystem. The substantial investment in Epic, who maintains a large Los Angeles office with 1,000+ employees (according to LinkedIn), reflects confidence in the LA’s talent pool and innovation potential. Additionally, this partnership between two industry giants fosters an environment for further collaboration, investment, and growth within LA's tech sector. As Disney and Epic Games deepen their ties and explore new avenues for content integration and distribution, it not only elevates the prominence of LA as a tech hub but also stimulates economic growth and job creation in the region. This partnership highlights LA's unique position as a hub where technology and entertainment converge. With its ability to integrate diverse industries, LA is driving innovation and expansion in digital entertainment. 🚀💸🎮

🤝 Venture Deals

LA Companies

  • ProducePay, a financing and marketplace platform for the fresh produce market, raised a $38M Series D led by Syngenta Group Ventures joined by Commonfund, Highgate Private Equity, G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions, and Red Bear Angels. - learn more
  • Blush, an invite-only dating app that drives users to local businesses on dates, raised a $7M Seed Round from individuals like Naval Ravikant. - learn more
  • Mogul, a startup founded last year that provides an overview of an artist's royalty earnings and identifies areas where money is owed but has not yet been collected, raised a $1.9 million seed round from Wonder Ventures, United Talent Agency, AmplifyLA, and Creator Partners. - learn more
  • Avnos, a hybrid direct air capture startup, raised a $36M Series A led by NextEra Energy and joined by Safran Corporate Ventures, Shell Ventures, Envisioning Partners, and Rusheen Capital Management. - learn more
  • AI.fashion, startup whose mission is to help retailers enhance the online shopping experience by providing consumers with virtual try-ons and personalized fashion recommendations, raised a $3.6M Seed Round led by Neo. - learn more
  • Suma Wealth, startup that aims to demystify financial topics and provide culturally relevant content, virtual experiences, and resources to help Latino users navigate financial challenges and opportunities, raised a $2.2M Seed Round . Radicle Impact led, and was joined by Vamos Ventures, OVO fund and the American Heart Association Impact Fund. - learn more
  • 222, a startup that helps users discover their city and meet new people through unique social experiences, raised a $2.5M Seed Round. Investors included 1517 Fund, General Catalyst, Best Nights VC, Scrum Ventures, and Upfront Ventures. - learn more
  • LimaCharlie, a security operations cloud platform, raised a $10.2M Series A led by Sands Capital. - learn more
  • Polycam, an app that uses a smartphone’s sensors to capture 3D scans of objects, raised an $18M Series A co-led by Left Lane Capital and Adjacent, and joined by Adobe Ventures and individuals like Chad Hurley and Shaun Maguire. -learn more.

LA Venture Funds

Actively Raising

  • ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
  • CZero, a startup building software to decarbonize logistics for logistics businesses and goods business through a vetted marketplace and optimization software. - learn more
  • Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
  • Sweetie, a marketplace to help people plan date nights, is raising a $1.5M Pre Seed Round. - learn more
  • StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

Venture Waves, Climate Tech Wins, and Silicon Beach's Ongoing Evolution

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Anduril Seeks $1.5B in VC Funds

Defense company Anduril Industries Inc., based in Costa Mesa and founded by Palmer Luckey, is seeking to raise $1.5 billion in fresh funds to boost its valuation to $12.5 billion or more, according to sources quoted by The Information. This fundraising effort, if successful, would mark one of the largest venture capital rounds of the year.

Image Source: Anduril

Anduril recently secured a contract to develop and test small unmanned fighter jet prototypes under the Air Force’s Collaborative Combat Aircraft (CCA) program, beating out major defense companies like Boeing, Lockheed Martin, and Northrop Grumman. Alongside General Atomics, Anduril will design, manufacture, and test these aircraft, with a final multibillion-dollar production decision expected in fiscal year 2026. This program aims to deliver at least 1,000 combat aircraft to fly in concert with manned platforms and is part of the Air Force’s Next Generation Air Dominance initiative. Central to Anduril’s success in this contract is the Fury autonomous air vehicle, acquired through the purchase of Blue Force Technologies. This victory underscores Anduril's rapid advancement in the defense sector, aligning with Luckey's vision of building faster and more cost-effective defense assets. - learn more

Los Angeles Ranks Number 1 in Emerging Climate Tech Hub

The 2024 Emerging Climate Tech Hubs Report by Revolution highlights Los Angeles as a burgeoning center for climate tech innovation. LA's growth in this sector is driven by its diverse talent pool, strong research institutions, and a culture of environmental consciousness. The city's unique mix of legacy industries, such as entertainment and aerospace, alongside emerging tech companies, positions it as a pivotal player in the climate tech landscape. This shift reflects a broader trend of decentralized climate tech funding across the U.S., reducing the historical dominance of California's traditional hubs. - learn more

Silicon Beach: Looking Back, Moving Forward

Assessing the overall health of the startup market is challenging, especially as venture capital funding has decreased by an average of 61% from 2021 to 2023 across the top VC markets in the US. Markets with robust ecosystems in AI, SaaS, Biotech, Healthtech, and Fintech appear to be weathering the downturn better than those focused on Consumer and Gaming industries, areas where Los Angeles traditionally excels.

Percent Change In VC Funding By Region

CB Insights

LA Times paints a rather bleak outlook on the Los Angeles tech scene noting venture capital funding in Greater Los Angeles plummeted 73% from 2021 to 2022. Silicon Beach, once a vibrant tech corridor, currently faces high vacancy rates and lacks late-stage financiers, especially in the AI sector. However, there are positive signs, including growth in aerospace startups and increased venture capital investment in early 2024, suggesting a potential rebound for LA's tech ecosystem.

While LA may not be exceeding expectations during this period, its tech ecosystem warrants a nuanced evaluation, given the broader market dynamics and its strong performance in specific sectors. Reach out to us with your thoughts.

🚀 SpaceX gears up for another stellar year, active raises, and more

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Happy Friday Los Angeles! You made it through the first week of 2024!

🔦 Spotlight

Elon Musk may be a divisive (albeit entertaining) figure, but the continued success of SpaceX is pivotal for the aerospace industry in Los Angeles and more broadly around the world.

Image Source: SpaceX webcast

What happened with SpaceX in 2023?

  • Elon Musk challenged Facebook founder, Mark Zuckerberg to a cage fight.
  • SpaceX launched 96 successful missions with its Falcon series of rockets, a 57% increase over its previous annual record.
  • SpaceX conducted two test flights of the largest and most powerful rocket ever built, Starship.
  • Roughly two-thirds of SpaceX's launches in 2023 were devoted to building out Starlink, the company's satellite-internet megaconstellation.
  • Isaacson’s Elon Musk biography was published in September including everything from Musk’s tumultuous relationship with his father to his work ethic and “demon mode”.

Moving forward what can we expect from SpaceX and its controversial founder? Continued innovation pushing the aerospace industry to new limits? Yes. More drama? Without a doubt.

Here is some of what is to come in 2024:

🤝 Venture Deals

Just Announced

Check back next week!

LA Exits

  • CG Oncology, an Irvine, CA-based developer of immunotherapies for bladder cancer, filed for a $100M IPO. It plans to list on the Nasdaq (CGON) with Morgan Stanley as left lead underwriter, and has raised around $317m in VC funding. - learn more
  • McNally Capital agreed to sell Advanced Micro Instruments, a Costa Mesa, CA-based maker of gas analyzers and sensing technologies, to Enpro (NYSE: NPO). - learn more

Actively Raising

  • ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
  • CZero, a hard-tech startup that is developing a technology for decarbonizing natural gas, is raising a $1.5M Seed Round. - learn more
  • Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
  • Sweetie, a marketplace to help people plan date nights, is raising a $250K Angel Round. - learn more
  • StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

📅 LA Tech Calendar

Sunday, January 7th

Wednesday, January 10th

  • Startup Cafe: Networking with a Kick - Entrepreneurs, Startups, and Tech Enthusiasts join together to meet and connect with like-minded people, industry professionals and investors, while enjoying a nice cup of coffee in Venice at The KINN. This week’s interactive discussion about AI’s evolution in entertainment will feature Dr. Sam Khoze and Rachel Joy Victor.
  • Venice Tech Happy Hour- Join Startup Coil and FoundrHaus Wednesday evening and enjoy the sunset from the rooftop, grab a bite overlooking Abbot Kinney, and mingle with other tech enthusiasts and entrepreneurs by the bar on the patio.

Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!

📙 What We’re Reading

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