Brief: Impossible Foods prepping to go public at $10bn valuation, sources say

• US plant-based protein company Impossible Foods is preparing to go public within the next 12 months, either via an IPO or a merger with an already-listed special purpose acquisition company (SPAC), people familiar with the matter told Reuters.
• The Redwood City, California-based startup has received “offers at a lucrative valuation” – as much as $10 billion – from SPAC suitors, but is mindful that such a ‘reverse merger’ route to going public could dilute existing shareholders more than a traditional IPO, the sources said.
• Talks about an IPO or SPAC merger are “subject to market conditions” and Impossible Foods may yet decide to raise another private funding round as an alternative to going public, the sources added.

Why it matters:

An Impossible Foods spokesperson declined to comment on the rumors when contacted by Reuters.

The company is best known for its soy-based Impossible Burger containing a proprietary form of heme, which enables the patty to ‘bleed’ and exhibit a ferric flavor reminiscent of animal-derived beef.

It was one of the highest-funded agrifoodtech startups globally last year according to AgFunder data, securing around $700 million across two rounds from investors such as Coatue Management, Temasek, Horizons Ventures, Mirae Asset, and Khosla Ventures. It also has a bevy of celebrity backers including Microsoft co-founder Bill Gates, musician Jay-Z, athlete Serena Williams, and film director Peter Jackson.

Impossible Foods’ archrival, Los Angeles’ Beyond Meat, went public in a $240 million IPO in May 2019, valuing it at about $1.46 billion at the time.