alt Hacker NewsThis is like Juicero. It doesn't need a startup, investors or "tech". They already do this all over the world, and not just for animal feed...
It's not that it's not a good idea, it's already there. It's that it's not a VC idea.
And it seems the market prooved my point
Why do you think it’s not a VC idea? VC is necessary to scale up to large volume. It’s easy for me to believe that insect protein can be a good business at high volume but not low. At volume you can get economies of scale and efficiency and get your cost basis down, making things profitable that wouldn’t be profitable at lower volume. Makes sense on fundamentals without a lot of details. Sounds like they were just too ambitious and chased after a very large market with very thin margins. (Animal feed.) instead of a smaller market with thicker margins (pet food)
The fact that they were simultaneously pursuing animal, pet, and human product lines is just poor management. Exactly the kind of poor management that VC can encourage, mind you. Because VC pumps in tons of money and wants to see big plans.