© NovoNutrients
NovoNutrients, a California-based gas fermentation startup once heralded for its potential to disrupt aquafeed with sustainable microbial protein, has entered an asset sale process through an Assignment for the Benefit of Creditors (ABC), a formal wind-down alternative to bankruptcy. The move comes despite the company’s successful pilot-phase validation of its technology and has been attributed to a shifting investment climate that has impacted several alt-protein and industrial biotech ventures.
‘’The technology works. We were proving that in our pilot phase. The challenge was capital intensity in a shifting investment climate,’’ wrote chief executive officer, David Tze, on LinkedIn.
Founded in 2017, NovoNutrients sought to transform industrial CO₂ emissions into high-protein feed ingredients for aquaculture, pet food and human nutrition. Its flagship ingredient, Novotein, achieved 73 percent protein content and was initially targeting fishmeal replacement.
In July 2024, the company raised an $18 million Series A round led by Woodside Energy and CM Venture Capital to commercialise its platform, but high capital demands and economic headwinds proved too steep to overcome.
Assets available
The assets for sale include US patents, proprietary non-GMO microbial strains, trade secrets covering bioreactor and processing systems and branded products such as Novotein and Novoceuticals. Also included are lab and pilot-scale fermentation equipment, validated protocols and data demonstrating 73 percent protein yields from industrial CO₂. According to Tze, the platform could shorten R&D timelines by up to five years for companies in carbon capture, industrial biotech or alternative protein sectors.
‘’This isn't the outcome we envisioned when we set out to capture megatons of CO₂ and feed the world. But the technology's potential remains unchanged. In the right hands, with sufficient capital, it can still transform how we think about carbon and protein,’’ wrote Tze.
The deadline for asset bids is 31 July. Interested parties can contact Forrest Reineke at Armanino for more details.
