Investment IdeasMy Portfolio
All Investment Ideas
$260 mln$700 mln$2 bn$3.4 bn

Impossible Foods

Innovative plant-based meat
Pre-IPO
Medium risk

Valuation in 2014-2020

Invest in Impossible Foods

Please, log in or sign up to invest in Impossible Foods

Investment Idea Details
About the company

Impossible Foods develops a new generation of meats and cheeses made entirely from plants. The Company selects specific proteins and nutrients from greens, seeds and grains to recreate the experience of meats and dairy products.

Its mission is to give people the enjoyment of food that comes from animals without health and environmental drawbacks.

Impossible Foods was founded in 2011 and is based in Redwood City, California, USA. Its products are now available in 20,000 U.S. retailers, including Albertsons, Gelson's, H-E-B, Kroger, Safeway, Wegmans as well as 30,000 restaurants.

Market Opportunities

Analysts at Barclays believe that meat substitutes, including plant-based and lab-grown protein, could grab a 10% share of the $1.4 trillion world meat market, and will grow to be worth $140 billion globally in the next ten years.

In August 2019 the FDA gave its approval for a key blood-simulating ingredient that makes the Impossible Burger look, feel, and taste beef-like. The company has partnered with Burger King, allowing it to sell its products worldwide through that chain. In February 2020, Impossible Foods agreed with Disney to sell its products at theme parks and on Disney cruise ships.

The company also partners with major players like White Castle, Red Robin, Qdoba and U.S. Starbucks, Beyond’s marquee restaurant partner in China. That has resulted in most of Impossible’s restaurant customers being large chains with pandemic-resilient takeout, drive-thru, and delivery options. During the pandemic, Impossible has increased its presence in U.S. supermarkets from about 150 to more than 20,000 stores, including Albertsons, Gelson's, H-E-B, Kroger, Safeway, Wegmans and others. That catapulted Impossible from a 5% market share in fresh plant-based patties sold at retail to 55%, largely at Beyond’s expense. In May 2020, Impossible Foods launched a direct-to-consumer sales site and accelerated its retail expansion.

Risks

Impossible Foods faces intense competition from various firms, including manufacturers of animal-based meat products and other brands that produce plant-based protein products. Its main rival Beyond Meat is the clear leader in the U.S. The company reported a 36.6% net revenue increase for 2020 and in 2021 has announced new or expanded partnerships with McDonald’s, Yum! Brands, and PepsiCo. It has strong footholds in China and the European Union, where doors remain closed to Impossible’s products because of the genetically modified ingredient they contain.

Financials and Valuation

In August 2020, Impossible raised $200 million in a round led by Coatue Management LLC that included participation from XN Capital. At that time it was valued at around $4.05 billion. In October 2021 it became known that the company is in talks to raise about $500 million at a valuation of $7 billion and in November 2021 the new funding arrived from Mirae Asset Global Investments and other existing investors.

As of November 2021 Impossible Foods has raised $2 billion. The company's investors include Bill Gates, Peter Thiel’s Founders Fund and Khosla Ventures, Jay-Z, Katy Perry, Serena Williams, Google Ventures, Horizons Ventures, UBS and Viking Global Investors. According to Reuters, Impossible Foods is preparing to go public through a listing that could value the plant-based meat company at $10 billion or more. The company would get on the markets in the next year either through a traditional initial public offering or a merger with a SPAC.

How Venture Investments Work
1. Searching for Companies

United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.

Publication
25 Sep
Minimum Amount
1 share
2. Buying shares

As part of our service for purchasing shares on the over-the-counter market (pre-IPO, OTC), for its traders and investors United Traders buys units in funds that own equity stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.

Shares Outstanding
Limited
3. Public Offering

United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

Public Offering Date
Pending
Estimated Gains
+150%
4. Taking profit

After the Lock-up period is over, the investment in pre-IPO or OTC will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

Exit
̴ 2021
Early Exit

Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

For an investor the above means that the pre-IPO or OTC investment may be exited after paying a part of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

What Are the Benefits of Investing with United Traders?

WE ARE A RELIABLE PARTNER

Our risk managers will support you throughout the entire transaction life.

HIGH PROFITABILITY

Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We prioritize companies at the pre-IPO stage as they already demonstrate strong financial indicators and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares through a subscription just before the IPO.

LOW ENTRY THRESHOLD

To buy the OTC stocks, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $10.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

Invest in Impossible Foods

Please, log in or sign up to invest in Impossible Foods