Aquaculture sustainability fund raises €93m

It says this capital will enable the fund to invest in more than a dozen early-stage aquaculture ventures with the aim to improve ocean health, address the impacts of climate change, and support coastal communities

Hatch Blue is an Irish venture capital firm specialising in innovative and sustainable aquaculture investments. It said the final close of the Blue Revolution Fund will contribute to the restoration of the marine ecosystem.

Investors include the European Investment Fund (EIF) and the Irish Strategic Investment Fund (ISIF), which invested €20m (£16.7m) and €15m (£12.6m), respectively.

Speaking of the support of the EIF earlier this year, Georg Baunach, managing partner and co-founder of Hatch Blue, said: “It is encouraging to see the EIF’s commitment to the blue economy, a commitment that resonates deeply with our own mission to foster the growth of a sustainable aquaculture industry.”

The firm’s first fund, Hatch Fund I, closed in 2020. Having now exceeded the target of raising €75m (£62.8m) for the firm’s second fund, Georg Baunach, managing partner and co-founder of Hatch Blue, said this is a promising sign that the investment community values the fund’s approach in fostering more sustainable practices in the commercial production of seafood.

“The aquaculture venture investing space has matured over the last 10 years,” Baunach said, adding that he has witnessed the industry innovate, with significantly more capital being invested in start-ups.

“The timing for the BRF is critical as we probably could not have done what we do now, seven years ago,” Baunach concluded.

The fund targets investments into next-generation fish farms, regenerative seaweed and bivalve farming, nutrition, enabling technology, health and genetics, and alternative seafood.

To date, the fund has made investment into six portfolio companies, including shrimp sector tech business Alune (pictured, above), environmental prediction application Manolin, shrimp biomass specialist Minnowtech and cell-grown “seafood” company Finless Foods. The fund – which aligns with the goals of the EU Green Deal – was advised by global environmental non-profit The Nature Conservancy (TNC).