Insects firm Beta Bugs secures £2.1m investment to boost growth

The investment will enable Beta Bugs, which was launched in 2017, to further accelerate its development into an international player in Black Soldier Fly genetics. Photo: Canva

Scottish insect genetics firm Beta Bugs has successfully secured a £2.1m investment, led by Tricapital Agents in collaboration with Scottish Enterprise. This new funding follows a previous £1.7m investment 2 years ago, signalling strong investor confidence in the company’s potential. With this fresh injection of capital, Beta Bugs is set to accelerate its growth, furthering its position as a leader in Black Soldier Fly genetics and scaling up production to meet growing market demand.

Investment Boost for Beta Bugs

Investors Tricapital Agents have led a consortium to pump an investment of £2.1m into Scottish insect genetics firm Beta Bugs.

Previous investment and follow-up

Tricapital Agents led a £1.7m investment 2 years ago, and it has followed this up with a fresh £2.1m cash injection alongside Scottish Enterprise.

Insect Protein — Are insects a sustainable animal feed protein? – Insects are regarded as an alternative with high potential because the production of insects demands limited amounts of water and land, and they can add value to low-value by-products. Find out more…

Focus on black soldier fly genetics

The investment will enable Beta Bugs, which was launched in 2017, to further accelerate its development into an international player in Black Soldier Fly genetics, as well as enable the company to scale up production of eggs and juvenile larvae to supply insect farming operations.

Sustainable insect farming solutions

BSF farming has developed extensively over the past decade and its larvae possess an ability to simultaneously divert food, agricultural and industrial waste from disposal and instead upcycle it into a green, circular and regionally produced, nutrient-rich ingredient for the pet, aqua and livestock markets. As a result, black soldier fly farms are already being deployed by waste processors, retailers and food manufacturers to reduce their waste footprint, while producing an alternative feed to replace soymeal and fishmeal production.

Expanding operations and team

Beta Bugs has been concentrating on selectively breeding superior black soldier flies, which are larger and faster growing, thereby improving the efficiency of converting waste and useful protein and oil. With the additional investment, the team will be expanded and the breeding programme will move to the next level. The company is also building the capability to deliver its superior flies to black soldier fly producers and has been developing commercial relationships with the first large scale producers in the UK.

Crucially, we are strengthening our key team with key hires. We have already recruited a specialist in up-scaling black soldier fly production, and establishing strategic partnerships, and are now actively recruiting for expertise in finance, operations and genetics.”

^{– Thomas Farrugia, Beta Bugs founder.}

Thomas Farrugia, Beta Bugs founder, welcomed the additional financial support, saying it would help deliver further genetic gains with its HiPer-Fly products:
“Additionally, we are increasing our production capacity to a larger scale to meet rising consumer demand for our key product formats – eggs, young and juvenile larvae, across the UK and European markets. “Crucially, we are strengthening our key team with key hires. We have already recruited a specialist in up-scaling black soldier fly production, and establishing strategic partnerships, and are now actively recruiting for expertise in finance, operations and genetics,” he added.

Moray Martin, CEO of Tricapital Angels, said Beta Bugs was on a strong growth trajectory: “Their innovative breeding programme has given them a distinct genetic advantage, as evidenced by their accelerating commercial progress. This investment round will pave the way to large-scale production, combining genetic innovation with increased output.”

Kerry Sharp, Scottish Enterprise director of Entrepreneurship and Investment, added: “There are several industries of the future where Scotland has global strengths, including industrial biotechnology, and building on that through support for companies such as Beta Bugs is crucial to their continued growth.”