InsectBiotech raises €7.2M to turn olive waste into animal feed

InsectBiotech, an Andalusia-based biotech company, has raised €7.2 million in an early-stage round. Arcano Partners' asset management division contributed €3.8 million, with a consortium of US investors adding the remaining €3.4 million.

The company uses patented technology based on Black Soldier Fly larvae to convert agricultural waste — such as olive alperujo — into sustainable proteins, oils, and soil-regenerating products. The technology was developed with the University of Granada over several years of research.

After years of trials and small-scale production, InsectBiotech says it has validated its technology and is ready to scale. The funding will build a plant capable of processing 7,500 tonnes of agricultural waste a year in rural Andalusia, near olive mills and farms that generate the residue.

Arcano's stake comes through Impacto Andalucía Innovación y Desarrollo, a €55 million vehicle backed largely by the Andalucía FEDER 2021-2027 programme and the regional government. The European Investment Bank selected Arcano as an intermediary to channel long-term financing into research, innovation, and digital projects in the region.

Insect-protein producers face steep costs in moving from validated technology to industrial scale. InsectBiotech's plan hinges on building and operating a new facility, a step where many biotech startups stall.

At €7.2 million, the round sits mid-pack for early-stage deals — but its structure is the story. Public European and regional funds, routed through a private manager, are increasingly financing waste-to-value ventures that promise both climate benefits and rural jobs.