Impossible Foods Secured $500 Million in Series F Funding

On Monday, March 16, 2020, Impossible Foods Inc. (Impossible Foods), a firm that provides plant-based meat substitute products, declared that it has raised about $500 million in its latest series F funding round led by a South Korean firm, Mirae Asset Global Investments (Mirae Asset). Some parts of funding would be allotted for fighting the company’s volatility due to the Coronavirus pandemic.

New Funding for Impossible Foods

With the latest round, Impossible Foods, founded in 2011 with the headquartered in Redwood City, California, has secured nearly $1.3 billion in the total round of funding. The new round of funding was led by a new investor, Mirae Asset which was assisted by the existing investors including Khosla, Horizons Ventures, and Temasek.

Now, the plant-based meat company has added new celebrities such as Mindy Kailing and Peter Jackson who joined in the list of the high-profile supporters of the company beside Serena Williams and Jay Z. Calling the event of Impossible Foods’ fundraising a “black swan” as it could secure a remarkable investment amid the coronavirus outbreak, an American venture capital firm, Sequoia Capital noted the firm to be careful with money.

The company, however, did not reveal the nature of the deal as well as its current market valuation. In November, Reuters had claimed about the company’s lookout for raising its capital between $300 and $400 million, which could have led to double its valuation to $2 billion it attained in its May funding round. Meanwhile, the main rival, Beyond Meat Inc. (Beyond Meat) has traded three times of its initial public offering (IPO) price in May, which led the company’s worth to around $4.5 billion.

CFO’s Assurance to Investors

The Chief Financial Officer (CFO) of Impossible Foods, David Lee has responded, regarding the question on the virus fallout on the sales of the company that the impact was less and their investors remained intact. He said, “Whatever the headlines are, we have the means to withstand short term shocks and realize our long term mission.”

According to Lee, it would be a piece of surprising news to others that the company has been planning to launch in more international markets amid the virus fear as, he insisted, the demand of the meatless products has increased dramatically in the past year since consumers became aware of their health impact.

Without sharing when the company would go for IPO, Lee said that the company would focus on expanding its manufacturing capacity with the funding it had secured. He said the new capital will be used across the business “so we have the balance sheet to focus on the long haul.”

Responding to a question on the impact of the virus, Lee declared that it had experienced “no material impacts” on its business due to the global outbreak besides it had its operations as far as Hong Kong and Macau. He added, “With what’s happening in the world, it’s important to reassure our customers that we are built to withstand short-term shocks… We’re able to stand tall. We have the ability with long-term investors.”

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