Ireland-based investor Hatch Blue, which specializes in in aquaculture and alternative seafood startups, reached a €93 million (USD$101 million) second close for its second fund, the Blue Revolution Fund.
BRF plans to use the funding to back more than a dozen early-stage aquaculture ventures with investments from half a million dollars to more than $5 million. The startups focus on the commercial production of finfish, shellfish and seaweed across North America and Southeast Asia, and introduce sustainable technologies and alternative seafood protein. They include next-generation fish farms, regenerative seaweed, bivalve farming and alternative seafood, as well as nutrition, health and genetics.
For example, Norway’s CageEye optimizes fish feeding by tracking fish movements; Chile’s ChucaoTech aims to revolutionize oxygenation practices; and Canada’s New School Foods produces plant-based seafood alternatives.
Aquaculture is the world’s fastest growing food production system. By 2030, it is expected to provide up to two-thirds of the world’s food fish supply. The Nature Conservancy (TNC), which serves as an advisor for the fund, said 90% of marine fish stocks are either overfished or fully exploited, so sustainably managed aquaculture represents an important opportunity to meet rising food demands while easing pressure on the planet’s aquatic ecosystems and supporting economic development, a set of gains collectively worth billions of dollars to people and nature every year.
Robert Jones, director of global aquatic food systems for TNC ’s said, “With the right practices and technologies, aquaculture can be a force for good, providing a low-carbon food source while actively supporting ocean health. Through strategic investments, BRF aims to accelerate the development and adoption of technologies and farming practices that have the potential to move aquaculture closer to realising its nature-positive potential.”
Hatch Blue launched BRF in 2022 to fund solutions that restore ocean health and biodiversity, support coastal communities and address challenges stemming from climate change. According to The Fish Site, the fund’s performance metrics include carbon sequestration amounts, nitrogen removal from coastal waterways, job creation for coastal communities, habitat protection and quantities of seafood produced.
Investors in the most recent round include the European Investment Fund, the Irish Strategic Investment Fund and Germany’s Rentenbank.
In the coming months, BRF anticipates investing in around nine additional companies. Early next year, TNC and Hatch Blue will release guidance resources for pre-investment conservation diligence and portfolio impact measurement and reporting in the aquaculture impact investment sector. These resources will support other investors in choosing investment opportunities that generative attractive financial returns and positive environmental impacts.
“Private capital needs to play a crucial role in addressing the climate and biodiversity crises,” said Lauren Ferstandig, Managing Director of NatureVest, TNC’s in-house impact investing and sustainable finance team, which worked closely with Hatch Blue to build impact outcomes into BRF investment structure. “The Blue Revolution Fund is an example of a scalable investment solution that not only delivers a financial return to investors but also models a more sustainable approach to aquaculture investing by building measurable conservation outcomes into every investment.”
