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Everything you need to know about Impossible Foods' rumored IPO

Published by: Stephen Masters
May 17, 2022 7:09 am

Founded in 2011, Impossible Foods is an American agri-food company that develops plant-based substitutes for meat products. The company conducts R&D on animal products at the molecular level to select the protein and nutrients from plants to create products that provide the same nutrition and taste as meat, dairy, and fish products.

The firm’s flagship product, the Impossible Burger, was launched in July 2016. The company rose to prominence following its partnership with Burger King, who launched the Impossible Whopper in 2019. The same year, Little Caesars started using Impossible Food’s plant-based sausage products on its pizzas.

The Impossible Whopper’s success proves that plant-based meat can sell, even in the notoriously meat-dominated fast food industry.

The success of Impossible Foods’ various products has rewarded it with a respectable $7 billion valuation.

Should investors expect an Impossible Foods IPO in 2022? If so, should you consider buying Impossible Foods stock when it IPOs?

Here is everything you need to know about Impossible Foods’ rumored 2022 IPO.

Is this the world’s fastest-growing plant-based meat company?

At writing, Impossible Foods products are sold in 22,000 supermarkets and 40,000 restaurants in four countries. In addition to its flagship Impossible Burger, the firm sells plant-based chicken nuggets, sausage, ground pork and meatballs.

However, the company believes the best is yet to come.

In 2020, its founder Dr. Patrick O. Brown declared that Impossible Food’s “mission is to replace the world’s most destructive technology – the use of animals in food production – by 2035. To accomplish that, we need to double production every year, on average, for 15 years and double down on research and innovation.”

This is obviously an ambitious goal. 

However, data suggests it may be realistic, given the rapid growth of the plant-based food market.

Is plant-based meat the future of meat?

Swiss bank UBS claims that the plant-based meat market will reach anywhere between $51-72 billion in 2025, three-times what it is worth today.

 The UN predicts that by 2040, plant-based meats
will make up 25% of all meat consumption

Indeed, global consumers are drawn to plant-based products for environmental, animal welfare and health reasons.

Clearly, this is a sector with tremendous upside.

A firm backed by venture capital heavyweights

In 2021, Impossible Foods revealed its sales reached nearly $2 billion, an 85% increase from the year before. It is unknown if the company is currently profitable, but the fact that is has serious venture capital backing is a sign it is doing something right.

Crunchbase reports that since its creation in 2011, Impossible Foods has raised $2.1 billion in total funding. The firm’s recent fundraisers include a $500 million round organized by Mirae Global Investments in March 2021, and a $200 million round held in August 2021.

 Microsoft founder Bill Gates is one of Impossible Foods’ early investors

Impossible Foods’ notable investors include Horizons Ventures, Coatue Management, and a host of celebrities such as Bill Gates, Jay-Z, Peter Jackson and Serena Williams.

What we know about Impossible Foods’ IPO filing

In April 2021, privileged sources revealed that Impossible Foods IPO would go public through a traditional IPO or a SPAC merger. Indeed, the sources claimed the company had received SPAC merger offers of $10 billion, but insiders are worried this path would dilute shareholder value more than a traditional IPO.

At present, it is still unclear when the company will go public.

Further, the current market conditions are not favourable for high-growth companies with little to no profitability. Tech stocks are getting crushed, and Beyond Meat – who is one of Impossible Foods’ fiercest competitors – has seen its stock price drop 43% since its 2019 IPO

Should you invest in Impossible Foods IPO?

As always, investors should conduct their own due diligence before investing in any company. That said, investing before an IPO can be lucrative should the stock take off when it hits the public markets

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions.

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The information provided in this article is for information purposes only. This article and its content are not, and should not be deemed to be an invitation to engage in any financial activity. This article should not be construed as advice or a personal recommendation. We are not authorised and regulated by any Financial Authority. The content of this article is not authorised by any financial authority. Reliance on this promotion for the purpose of engaging in any financial activity may expose an individual to a significant risk of losing all of the funds.

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