Investors ‘love affair with brand-new, plant-based options to animal items continues as Blackstone Development, a(newish )investment car from one of the world’s biggest financial services firms, said it led a $200 million financial investment into the colossus of oat-milk brands, Oatly.
The Malmö-based company likewise drew in a few of the greatest names in home entertainment, consumer service and international finance as < a class="crunchbase-link"href="https://crunchbase.com/person/oprah-winfrey"target =”_ blank”data-type=”person”data-entity=”oprah-winfrey” > Oprah Winfrey, Roc Nation, Natalie Portman, former Starbucks chairman and chief executive Howard Schultz, Orkila Capital and Rabo Corporate Investments, the investment arm of Rabobank, participated in to fund the company’s newest round.
For Blackstone’s newly minted head of growth financial investments, Jon Korngold, the deal for < a class="crunchbase-link"href="https://crunchbase.com/organization/oatly"target="_ blank"data-type="organization" data-entity =” oatly “> Oatly is representative of the types of dedications his firm will make into growth companies. It’s a business that has actually proven to be a leader in its classification; there’s very little technology threat left in the business, however Oatly can benefit from the network of logistics, supply chain and customer companies that the investment company owns.
It’s also a company whose mass adoption can potentially help move the needle on minimizing greenhouse gas emissions. “Oatly is one of those companies that succeeds by doing excellent,” stated Korngold in an interview.
While the same can’t be said for all of Blackstone’s financial investments (Blackstone was criticized by previous presidential candidate Senator Elizabeth Warren for its stake in Hidrovias do Brasil, a facilities business reportedly linked to deforestation in the tropical rain forest), Oatly does have considerable ecological advantages. The company’s product produces a more environmentally friendly milk replacement than almond milk (almonds are a hugely water-intensive crop) and aren’t processed like the genetically modified milk replacements pertaining to market. Oats also require less fertilizer, which has secondary advantages for the water table and other kinds of contamination.
With the Oatly investment, Blackstone Development is riding a wave of investor assistance for the creation of an alternative, more sustainable food system driven by increasing customer demand for these more sustainable products. One investor has called the coming tidal wave of innovation around changing food production the greatest entrepreneurial opportunity in a generation.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.