The Blue Revolution Fund, which aims to support the restoration of the marine ecosystem, has exceeded its initial €75m target, and aims to foster more sustainable practices in the commercial production of seafood.
Hatch Blue, an Irish venture capital firm specialising in sustainable aquaculture investments, has announced the final close at €93m of its Blue Revolution Fund (BRF), which aims to 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 and €15m, 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 exceeded its target of raising €75m for the firm’s second fund, Baunach added that this served as a promising sign that the investment community valued 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 ten years,” Baunach said, adding that he has witnessed the industry innovate with significantly more capital being invested in startups.
“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, BRF has made investment into six portfolio companies. The fund – which aligns with the goals of the EU Green Deal – was advised by global environmental non-profit The Nature Conservancy (TNC).
EU blue economy
The recent funding round comes at a time when 90% of marine fish stocks are either overfished or fully exploited.
Currently, the aquaculture sector provides more seafood than wild fisheries and is projected to reach 109 million metric tons in production by 2030, according to TNC.
“Historically, investors haven’t taken much interest in aquaculture, for a variety of reasons, including the complexity of production and supply chains, a lack of data, and real or perceived financial or environmental risk,” said Robert Jones, director of global aquatic food systems for TNC.
“For many investors, it’s unfamiliar territory with a steep learning curve. However, there has been more and more interest in aquaculture in the last few years, and rapid growth of this sector will inevitably be a draw for investors, which creates a huge opportunity to benefit both communities and nature if done responsibly,” Jones added.
Looking ahead
The fund has already invested in six early-stage aquaculture ventures and intends to build its portfolio, according to Jones, who added that TNC will be undertaking ESG due diligence across all investments.
This will include measuring and reporting progress toward fund impact targets that focus on nitrogen removal from waterways, avoided carbon emissions, portions of sustainable seafood produced, creation of regenerative habitat, and job creation, Jones confirmed.
