Valuation Challenges of Impossible Foods

Snowflake IPO: A Rebound for the US Stock Market
Case Code: FINC175
Case Length: 9 Pages
Period: -
Pub Date: 2021
Teaching Note: Available
Price: Rs.300
Organization: -
Industry: -
Countries: United States
Themes: Valuation, Financing, Branding Strategy, Financial strategy
Snowflake IPO: A Rebound for the US Stock Market
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Scalable Model

With the mission of stopping dependence on animals for food and restoring biodiversity and reducing the impact of climate change by transforming the global food system, Impossible Foods made delicious, nutritious, affordable, and sustainable meat, fish, and dairy from plants. Impossible Foods, which used only a small fraction of land, water, and energy compared to animal agriculture which took nearly half of the world’s land, emitted 15% of global greenhouse gas emissions, and consumed 25% of the world’s fresh water, hoped that with its products, people could keep eating what they loved without affecting the planet adversely..

Funding and Valuation Of Impossible Foods

Impossible Foods was backed by rounds of funding from top private equity players and angel investors. The investors included Khosla Ventures, Viking Global Investors, UBS, Horizon Ventures, Bill Gates, Viking Global Investors, Trinity Capital, and Temasek..

Industry Structure

According to an analyst, the plant-based meat market was projected to account for a value of $12.1 billion in 2019 and was likely to grow at a CAGR of 15.0% from 2019, to reach a value of $27.9 billion by 2025..

Looking Ahead

Pat frequently repeated Impossible Food’s lofty and very ambitious mission of making animal agriculture obsolete as a food production technology by 2035. Impossible Foods was trying to do that by replacing animal meat with plant-based meat in a flexitarian’s diet. The company planned to develop new products and variants based on meat, dairy, and fish platforms..

Exhibits

Exhibit I: Impossible Burger
Exhibit II: Impossible Foods Meat Burger at Burger King

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