Planetarians Set to Auction Patented Technology Amid Industry Struggles
Planetarians, a startup known for its innovative method of producing meat alternatives from spent liquid brewers’ yeast and other upcycled proteins, is set to auction its intellectual property (IP) and assets on August 7 as part of a strategic transition to address outstanding debts.
A New Direction for Planetarians
Founder and CEO Aleh Manchuliantsau clarified the urgency behind the auction, stating, “This isn’t a liquidation; it’s a strategic transition. We’re specifically seeking acquirers who will actively utilize and develop this technology further.”
An Industry in Transition
Based in California, Planetarians has joined the growing list of companies in the alternative protein sector pivoting in response to dwindling investor confidence and stagnating sales across various markets.
Founded in 2013, the company initially focused on utilizing upcycled ingredients, like defatted sunflower seeds, to enhance snacks and pasta, before shifting its concentration toward meat alternatives.
Innovations and Achievements
With its patented technology that crafts clean label meat alternatives from spent yeast and leftover plant proteins, Planetarians operates a pilot facility measuring 11,500 sq ft in Hayward, California.
Despite raising $6 million in a seed round in 2023—with backing from notable firms like Mindrock, Traction Fund, Techstars, SOSV, and ZX Ventures—the startup has faced hurdles in securing additional funding for scaling production capacity.
CEO’s Perspective on Market Dynamics
In recent remarks to AgFunderNews, Manchuliantsau emphasized the nuanced challenges facing the company: “The current investment climate for food tech is indeed challenging, but our situation is more complex. We’ve accumulated $8 million in total funding and validated our market presence, achieving notable sales figures.”
He continued: “The fundamental issue isn’t our technology or market fit; it’s the mismatch between the capital intensity required to scale breakthrough manufacturing innovation and the current investor appetite for food tech.”
An Opportunity for Acquisition
In its upcoming auction, a memo shared with AgFunderNews specifies valuable assets being made available, including a twin-screw extruder, centrifuge, freezing tunnel, and various other equipment. The sale also includes patents for core technologies and products valid until 2041, alongside rights to lease the pilot facility and access to the ‘SpyGlass AI’ platform.
Market-Validated Technology for Growth
The memo describes the auction as a “rare opportunity to acquire de-risked, market-validated technology” capable of delivering societal benefits. Planetarians’ IP addresses prevalent issues in the plant-based meat space, like high retail pricing and consumer demand for transparent ingredient listings, by significantly lowering production costs through innovative use of agricultural byproducts.
Guidance from the Founder
For prospective buyers interested in utilizing the technology, Manchuliantsau has offered a strategic advisory service for a 6-to-9-month transition period, ensuring a seamless knowledge transfer critical for leveraging the acquired assets effectively.
The Broader Impact of SpyGlass AI
“The real opportunity here extends beyond plant-based meat,” said Manchuliantsau. “Our SpyGlass AI platform can create better-for-you versions of various consumer packaged goods, potentially transforming how major food companies approach innovation and sustainability.”
