Zero Egg Investment Memo
Meera Ventures 08.19.2020
Summary
Zero Egg Ltd. develops and manufactures a plant-based liquid that imitates the taste, looks, and chemical function of an egg. Zero Egg claims its product can be used as an egg substitute in food like omelets and mayonnaise.
Funding: $3M
Stage: Seed
Product
Plant-based egg replacement.
Same look, taste, and texture as ordinary eggs made from plant proteins.
An all-purpose egg that works in “any” recipe; consistent, shelf-stable, & cost-effective.
Healthy choice; low fat, no cholesterol, vegan, low calorie, gluten-free, non-GMO, dairy-free, & Kosher.
Sold as a powder form and customer liquefies mixture to keep costs down and increase food safety.
Hen & environment friendly.
Market
Industrial food production.
Current customers; restaurants, bakeries, and a ravioli producer.
Targeting US, UK, and Israeli market. The product has global demand.
Not currently selling B2C but hopes to in the future.
TAM: Global egg replacement ingredients market is expected to reach $2.1B by 2026 with a CAGR of 6.01%.
The global egg protein market is expected to reach $35.7B by 20206 with a CAGR of 6.1%.
Competition
Real eggs & plant-based alternatives.
JUST Egg, Organ Foods, Terra Vegane, Free & Easy, Follow Your Heart, and more.
Business Model
Zero Egg is currently piloting its product with food manufacturers.
Zero Egg is focused on the B2B plant-based egg market but is uniquely positioned to potentially sell directly to consumers down the road.
Team
Food industry veterans, scientists, and dreamers.
CEO: Liron Nimrodi
Opportunities
Direct to consumer.
Global expansion.
Try to be an input in as many products as possible.
Not dependent or affected by global commodity prices.
Risks
Disrupting a large industry with state-subsidized commodities and large incumbents.
When customers make their own mix (adding water & oil to powder) it creates inconsistency in the product and results may vary.
Learn Something
Company Profile: Crunchbase | Pitchbook | Start-Up Nation Central
B2C: the process of selling products and services directly between a business and consumers who are the end-users of its products or services.
Australian EGG Corporation: “Environmental Assessment of an Egg Production Supply Chain using Life Cycle Assessment”
Food Navigator: “Zero Egg develops all-purpose egg replacement: ‘Our mission is to make plant-based foods the obvious choice”