FEEDING THE FUTURE

Founder of Bits x Bites

Interview by Sophie Steiner

Food tech serial entrepreneur Matilda Ho is the founder and managing director of Shanghai-based Bits x Bites, a company that invests in startups working to help feed China’s growing population of 1.4 billion people in a more sustainable way. We first caught up with Matilda back in 2017 when Bits x Bites was just starting out, and since then, it has added 15 portfolio companies. The company is currently investing in everything from precision agriculture to alternative protein solutions to plant-based education options.

Briefly describe Bits x Bites – what it does and how it has evolved. Bits x Bites is a venture capital fund that invests in early-stage agrifood tech startups tackling systemic challenges in the food system. We are one of the very first in Asia to invest in this space and the first Chinese VC to invest in cellular agriculture, when we backed Israeli company Future Meat Technologies in 2018.

Since then, our most recent investments have been in Next Gen, which has introduced a plant-based chicken product named TiNDLE.

What are some of the alternative protein solutions your company focuses on? At Yimishiji, we have very stringent product selection requirements for all of our offerings: no chemical residues in our produce, no antibiotics in our meat, no artificial flavoring in our packaged products, just to name a few examples. And, of course, they have to taste great and offer good value to our customers.

We are equally picky with our plantbased offerings. Our team has sampled several dozens of protein alternative products on the market and are happy that we finally found a small number of products that have convinced our merchandising team. Now, we offer 16 plant-based beverages and yogurts made of almond,

“The first product will be a cell and plant hybrid product that can closely mimic chicken meat. “

mung bean and/or walnuts. We have also introduced our own high-protein meatless snacks.

How do you see these alternative protein solutions changing the scope of agriculture in China for the better? The Chinese diet has traditionally consisted of a wide diversity of plant sources. We have established supply chains for many of these plant ingredients. It gives China an opportunity to play a bigger part as a supplier of high-value ingredients as these plants become the foundation of new-generation protein products.

Take mung beans and yellow peas as examples. In addition to dried mung beans or selling bean sprouts, mung beans are now used as the base protein ingredient in plant-based eggs. Previously, pea was separated into starches that went into vermicelli noodles and protein powder as animal feed. Now, pea provides the core protein in many plant-based products such as Beyond Meat.

Looking ahead, there is also potential to develop breeding innovations to genetically engineer plants to produce specific proteins used for animal alternatives, such as casein in milk. We’re just scratching the surface.

Which plant-based protein companies are you currently working with that you feel are the most promising for entering and making an impact in the Chinese market? In all of Bits x Bites investments, we evaluate the companies based on their potential relevance for the Chinese market.

On the ingredient side, we have invested in a chickpea protein concentrate company. Chickpea is neutral in color and taste, which makes it versatile in both meat and dairy applications. Also, chickpea can grow with very little water and is therefore perfect for cultivating in areas like northern China. In 2020, Xinjiang allocated 13,000 mu in the Toli area for growing chickpeas.

Elsewhere, we have invested in Future Meat Technologies, an Israeli cellular agriculture company that has developed cell-based chicken fat that can fill in the aroma, taste and texture missing in many plant-based products. The first product will be a cell and plant hybrid product that can closely mimic chicken meat.

Next Gen, our newest investment, is a Singaporean company that makes TiNDLE, plant-based chicken thigh. Its texture and versatility make it extremely well suited for Chinese cuisines. The product is now in Hong Kong, Macau and will soon be in the US, followed by major cities in China.

Are there specific regions of China you focus your energy on? For innovative food companies, we believe Shanghai is a great base. On one hand, it has a large and diverse customer base who is as conscious about health and nutrition as it is curious about new products and flavors. On the other, it has a vibrant dining scene and community that is keen to experiment with new menu and ingredient options. Shanghai also has a strong network of food and ingredient R&D resources that are keen to learn about what startups have to offer and to collaborate. This makes it a great springboard for companies to introduce themselves in the Chinese market.

Of course, given our investment scope across the full supply chain, we frequently go to key agricultural regions like Shandong and agrifood tech academic and research hubs like Zhejiang and Beijing.

READING CORNER

Book recommendations from That’s editorial team:

The Last Fallen Star

Based on Korean mythology, The Last Fallen Star follows a Korean-American witch’s clan through a series of problems, starting with Hattie trying to give her adopted sister Riley a share of inherited magic. Former New Zealand diplomat Graci Kim set her debut novel in modern day LA and includes plenty of forbidden magic and enchanted bubble teas.

The Poverty Line

Beijing-based Stefen Chow and Huiyi Lin took ten years through 36 countries and territories on six continents to examine poverty through the lens. With each government’s set poverty-line as the guide, they purchased food they could afford per day in local markets then placed it on a page of local newspaper bought that day.

CLASS CLOWN

Lesson in Love

Photos of students congregating outside of windows at Wuhan University on a cold night went viral. Students were listening to a lecture on relationships presented by professor of psychology, Yu Feng. Purported to teach about values, respect and communication rather than manipulative pick-up tricks, the lecture still came under scrutiny due to its academic setting. Students and netizens seem to generally be in favor, pointing out that academic pressure placed on Chinese youth leaves no time for development of this crucial life skill in their childhood.

ECO HOME

Healthy Humidifyer

Cold winter air and heated spaces often dry out nasal passages, causing a kind of freeway for germs usually caught in the body’s natural moisture mechanisms. Humidifiers used correctly can eliminate this problem. Filtered drinking water is the best source for steam, as it’s absent of bacteria and sediments that can become airborne if using the water from the tap. A simple, inexpensive tool found on Taobao is energy efficient and completely portable for use in your home, office or classroom. Make this truly eco-friendly by designating a clean, reusable bottle just for humidifier water.

VEGGIE MAMA Vegan Cherry Chocolate Chunk Cheesecake Recipe

Since I first started my journey into vegan cooking, cheesecake made using cashews has always been a favorite of mine. Cheesecake is definitely something you make when you want to surprise people with a delicious vegan treat that they won’t believe is egg and dairy free. It’s creamy and delicious, and the best part is it’s heart healthy! Once you get the hang of it, it’s really easy to whip up, and you can do any kind of variation you like. Think orange and chocolate, Oreo, strawberry, blueberry, matcha... the possibilities are endless!

> Scan the QR code for the full recipe.