Belgium’s FlyBlast Faces Bankruptcy After Ambitious Ventures in Biotechnology

In a surprising turn of events, FlyBlast, a Belgium-based startup known for its pioneering work in genetically engineering black soldier flies to produce insulin and other high-value proteins, has officially filed for bankruptcy. This unforeseen situation marks the end of a promising yet perilous journey in the realms of biotechnology and sustainable protein production.

Leadership and Vision

Under the guidance of Johan Jacobs, who previously led an insect farming company, Millibeter (which was acquired by the now-defunct AgriProtein in 2019), FlyBlast set out with an ambitious plan to revolutionize the cultivated meat industry. However, the startup’s focus on a cash-strapped and nascent market ultimately proved too risky, leading to its downfall when it failed to pivot to more sustainable opportunities in time.

Technical Progress and Challenges

Jacobs acknowledged the significant technical advancements made by the FlyBlast development team, led by Paul Mozdziak. Within just a year, they successfully developed multiple transgenic black soldier fly lines, including one capable of expressing human insulin. “Despite the challenges we faced in securing funding for subsequent stages, we’ve made remarkable progress,” Jacobs remarked. “Genetically modifying black soldier flies can be achieved quickly and at a relatively low cost, revealing groundbreaking applications across numerous sectors.”

Warnings from the Industry

During a conversation with AgFunderNews at the Future Food-Tech event in London, Jacobs reflected on the steep challenges posed by the cultivated meat sector. He expressed concern that the industry’s intricate issues would ultimately hinder FlyBlast’s success. “I left the event with a clear understanding that our focus was detrimental,” he said.

Jacobs elaborated on the situation, stating, “Some companies managed to overcome their price problems regarding cell culture mediums, while others were misleading their VCs. Unfortunately, without a market-approved solution, potential customers were not willing to fund our development activities.” This conundrum was compounded by a saturated investment landscape where venture capitalists saw multiple layers of risk, prompting them to retreat instead of invest.

Exploring Strategic Pivots

Jacobs explained that unlike genetically engineered microbes, black soldier flies offer distinct advantages in producing high-value recombinant proteins. He noted, “These insects can be farmed on a large scale and at a low cost, while also being more adept at producing animal molecules than yeast or bacteria.”

Although FlyBlast considered pivoting to the biopharma sector, the financial constraints and experience of the team hindered this potential shift. Furthermore, sales cycles within the animal health domain proved lengthy, limiting their growth potential. Jacobs stated, “Had we been better funded initially, we might have made a substantial impact in that area. However, at this point, it was primarily a desperate attempt.”

Conclusion

Reflecting on FlyBlast’s journey, Jacobs concluded, “In today’s climate, executing every aspect of business flawlessly is crucial—and we fell short in several areas.” The closure of FlyBlast serves as a cautionary tale for startups navigating the complexities of biotechnology and cultivated meat markets.

Further Reading:

• Exclusive: Alt meat co Planetarians is shutting down, seeks buyer looking for ‘de-risked, market-validated technology’
• Arkeon CEO delivers postmortem on ‘protein from air’ startup: ‘We just simply ran out of time’
• Gas fermentation startup Novonutrients calls it quits, seeks buyer for assets: ‘The technology’s potential remains unchanged’