Israeli cultivated meat startup Believer Meats, which received US approval for its chicken this year, has ceased operations, a week after it was hit with a lawsuit over unpaid bills.
Just over a month after becoming the fifth company to be allowed to sell cultivated meat in the US, Believer Meats has shut down.
The unexpected decision was announced by the startup’s global HR and talent manager, Anne Schubert, who wrote on social media: “After two years of building something truly bold and special, Believer Meats made the difficult decision last week to cease operations.”
It comes days after the Israeli company was sued by Gray Construction over an alleged $34M in unpaid bills for its North Carolina facility, as reported by AgFunderNews. It had also laid off staff at its factory and executive level.
‘Proud of what we accomplished’
In her announcement, Schubert reflected on the company’s achievements, which included building the world’s largest cultivated meat factory, tech breakthroughs to produce the proteins at low costs, and approval from both the US Food and Drug Administration and the Department of Agriculture.
“While the outcome is not what any of us hoped for, I am incredibly proud of what we accomplished together,” she wrote. “We built a world-class team from the ground up – talented, mission-driven people with diverse skills spanning engineering, biotechnology, manufacturing, food science, quality, and more. This team tackled novel and complex challenges with creativity, grit, and heart.
“As we close this chapter, all Believer employees – myself included – are now seeking our next opportunity,” she added. “Thank you to everyone who has supported us and continues to support the mission to build a better food future.”
The lawsuit against Believer Meats alleged that it did not pay its bills to the construction company on time, breaching an agreement signed in 2023. The case went into mediation two days after the complaint was filed.
A shock for the cultivated meat industry
Believer Meats was on course to become one of the only startups to commercialise cultivated meat in the US, joining Upside Foods, Eat Just (both approved for chicken), Wildtype (salmon), and Mission Barns (pork).
The company has raised $387M in funding since its founding in 2018. Its 200,000 sq ft plant, located in Wilson County, North Carolina, features an innovation centre and tasting kitchen, and has the capacity to churn out 12,000 tonnes of cultivated chicken every year.
Though Believer Meats hasn’t clarified why it shut down, the development is a significant blow to the cultivated meat sector, which has had a watershed year in terms of regulatory progress, but has continued to struggle with funding since investments reached a peak in 2021.
As a result, several cultivated meat companies have pivoted focus, been acquired, or ceased operations altogether. For instance, Uncommon Bio sold off its cultivated meat platform to Meatable and Vow, shifting focus to therapeutics instead, and UK-based CellRev and Dutch startup Upstream Foods both called it quits this year.
Orbillion Bio, meanwhile, was snapped up by Fork & Good, and Vital Meat was bought by Gourmey to form a new entity called Parima.
But Believer Meats’ shutdown is a shock, considering it was on the cusp of entering the market following its regulatory wins. It’s a sign that despite a host of companies gaining approval in multiple markets, the cultivated meat space remains volatile and in dire need of financial support.
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