Invest or Sell Upside Foods Stock? Evaluating Valuation, Stock Price, and IPO Opportunities

Image Credits: Upside Foods

Who are Upside Foods?

Upside Foods, previously known as Memphis Meats, stands at the forefront of the cultivated meat industry. The company is dedicated to producing sustainable, ethical meat by growing it directly from animal cells. This method, which bypasses traditional livestock farming, addresses the significant environmental and ethical issues linked to conventional meat production. In 2022, Upside Foods achieved a significant milestone by receiving a "No Questions" Letter (NQL) from the FDA, underscoring their leadership in the cultivated meat sector. This certification not only affirms the company's dedication to safety and regulatory standards but also marks a pivotal step towards the widespread acceptance and integration of cultivated meat into the market.

The company is apparently on the cusp of launching its regulatory-approved chicken filets and is developing additional offerings, such as breakfast sausages and chicken patties. With an eye on revolutionizing the $300 billion U.S. meat market, Upside Foods aims to appeal to both meat-lovers, vegetarians (and possibly vegans?) by offering an alternative to traditional meat products. This ambition positions the company as a promising but risky investment opportunity, particularly as it approaches its eagerly anticipated initial public offering (IPO).

The company was founded in 2015 and rebranded as Upside Foods in 2021. Originating from Berkeley, California, Upside Foods is led by CEO and Founder Uma Valeti, a former cardiologist who applied medical technologies to pioneer the cultivation of meat in labs.

In November 2021, Upside Foods launched its EPIC (Engineering, Production, and Innovation Center), marking a significant advancement in its production capabilities. By June 2023, the company secured FDA and USDA approvals to sell its products in the U.S., signaling a new era in meat consumption that prioritizes both the planet's health and ethical considerations.

How to Invest in Upside Foods Stock

Unless you are an accredited investor, you won't be able to buy Upside Foods stock. This is because Upside Foods is not a publicly traded company. If you are not an accredited investor you will need to wait until Upside Foods reaches IPO stage.

Should I put my money into Upside Foods Stock?

Upside Foods, with its groundbreaking approach to meat production, is like the hot girl at the dance, promising to shake up the traditional meat industry. For a while now, we've been teased with the idea that their lab-grown meat would hit our shelves "in a few years," yet here we are, still waiting, as those goalposts seem to keep moving. So, the burning question is: Is throwing your investment dollars into Upside Foods a smart move? Let's break it down. While the hype is real, the journey to market dominance is packed with challenges, from scaling up production to winning over consumers and achieving cost competitiveness. However, are the potential payoff of committing to Upside Foods as a pre-IPO company, that's leading the charge in a more eco-friendly, cruelty-free food future, similar to its counterparts in the animal-free food industry? With trends moving towards animal-free, cultured meat and the company's growing presence, Upside Foods is definitely worth a closer look, just like Impossible Foods in its pre-IPO days.

Upside Foods Valuation

Upside Foods is a significant player in the cultivated meat / lab-grown meat industry, with its valuation reaching the $1 billion milestone following a Series C funding round in April 2022. Ultimately the real valuation Upside Foods stock is known only to company insiders because the company remains private, and thus, a public Upside Foods stock price does not exist yet. Despite this, the landscape for private stock price information is evolving, with pre-IPO marketplace data and other sources providing insights into valuations more than ever before. However, it's essential to remember that the stock price, which represents the value of a single share, is just one piece of the puzzle. For private companies like Upside Foods, underlying valuation metrics such as revenue, profitability, and market sentiment play a pivotal role in understanding the company's financial health and potential for growth, offering a broader perspective on its worth beyond just the stock price. So our advice is not to get too caught up on the exact stock price at this stage.

Upside Foods Stock IPO Opportunities

As the cultivated meat industry builds up momentum, the potential for an Upside Foods IPO has garnered significant attention. However, as of 2024, an IPO date remains uncertain. There is no expectation for the company not expected to go public in the next few years. Despite their huge $400m funding round in 2022 and FDA approval in 2023, Upside Foods is still very much at the pilot stages of production. Recent press articles have highlighted that Upside Foods are navigating the complexities of scaling up production and proving its business model's viability. The journey towards profitability and establishing a market-ready business model suggests that an IPO could be several years away. Historically, startups have waited until their operations and revenue streams are more robust before pursuing a public offering. It is important not to underestimate the importance that consumer acceptance will play in Upside Foods IPO success. Key indicators to watch for any signs of an upcoming IPO include new funding rounds, the hiring of an underwriter, the submission of an S-1 filing, either public or confidential, or any announcements regarding an IPO date range. Until such developments occur, the timeline for Upside Foods to enter the public market will continue to be a topic of speculation among investors and industry watchers alike.

How to Buy Upside Foods Stock

For those eager to deploy capital into Upside Foods, navigating the process to buy stock can seem daunting, especially since it's not yet available on public markets and a ticker is yet to be assigned. As a private entity, Upside Foods shares are not accessible for purchase through conventional brokerage accounts. However, there's a silver lining for accredited investors—individuals with significant net worth or high annual incomes. These investors have the unique opportunity to acquire pre-IPO shares of companies like Upside Foods through secondary market platforms, such as Equity Bee or Forge Global. It's worth exploring these platforms to discover if shares are on offer, providing a chance to get in on the ground floor ahead of a public offering.

For the broader investor community without accredited status, patience is required until Upside Foods makes its debut on the stock market with an IPO. In the interim, those looking to dive into the alternative food sector have other options, including established public companies like Beyond Meat, Oatly, or Tyson Foods. Pre-IPO companies in the plant-based meat industry like Impossible Foods could also be of interest. These alternatives offer a way to participate in the burgeoning market for sustainable and innovative food solutions while awaiting the opportunity to invest directly in Upside Foods.

Companies Similar to Upside Foods Stock

For those intrigued by the pioneering efforts of Upside Foods in the cultivated meat industry, several other companies are making waves with similar innovative approaches. Mosa Meat, based in the Netherlands, is renowned for creating the world's first cultured beef burger, showcasing their commitment to reducing the environmental impact and animal slaughter involved in meat production. GOOD Meat, a division of Eat Just, Inc., focuses on developing lab-grown poultry products, highlighting their commitment to sustainability and animal welfare. Aleph Farms, hailing from Israel, stands out with its mission to grow steaks directly from non-GMO cells, aiming to provide a more ethical and sustainable alternative to traditional beef. These companies, similar to Upside Foods, are at the forefront of the cultivated meat industry.

What is Upside Foods Stock Price?

Upside Foods operates as a private entity, which means its stock price isn't publicly available or easily determined. Stock prices for public companies are derived by dividing the company's overall valuation by its total number of outstanding shares. However, since Upside Foods is private, it has the flexibility to issue new shares at any time, making it challenging to ascertain the exact number of shares currently outstanding. Based on its latest funding rounds, Upside Foods is valued at approximately $1.15 billion. If we were to hypothetically estimate that the company has issued 250 million shares, this would imply a tentative share price of around $4.59. However, this calculation is extremely speculative and should be regarded with considerable caution.

How to Invest in Upside Foods Stock

Injecting money into Upside Foods stock can be achieved through various avenues, including private stock brokers, venture capital firms, or pre-IPO marketplaces that specialize in offering pre-IPO shares of companies like Upside Foods.

How to Cultivate Upside Foods Stock?

Deciding whether to buy Upside Foods stock requires a nuanced understanding of its position within the cultivated meat industry. Currently, as Upside Foods is not publicly traded, investment opportunities are limited to accredited investors through pre-IPO shares available on secondary platforms. This exclusivity period allows potential investors to delve deep into the company's prospects, evaluating its humane and eco-friendly meat production approach, consumer acceptance potential, market share prospects, and notable backing by investors like Bill Gates. Upside Foods boasts a pioneering stance in claiming the ability to scale the production of meat from animal cells in two distinct ways: creating ground meat from cells in suspension and forming meat-like textures by knitting cells into tissue sheets. However, challenges have emerged, notably with a former employee revealing to WIRED the difficulties in using their bioreactors for wholecut production, raising questions about the viability of their business model and mass production claims.

Despite these hurdles, Upside Foods has attracted significant investment, securing $400 million in Series C funding, the largest round in the industry, supported by high-profile investors and companies. This financial backing underscores confidence in Upside Foods' potential to scale and commercialize its products. The company's strategic moves, including opening the EPIC facility for diverse meat production and partnerships for consumer adoption, highlight its commitment to overcoming the technical and market challenges ahead. With ambitious plans to scale production to millions of pounds of product, Upside Foods is focusing on building a sustainable supply chain and engaging consumers and businesses alike.

Investors pondering Upside Foods stock should weigh the innovative potential against the technical and market acceptance challenges, much like the scenario with Impossible Foods before it shook the food industry. The company's path to profitability, market positioning, and the broader cultivated meat industry's momentum are critical factors to consider. As Upside Foods progresses towards commercialization and potential public offering, keeping an eye on new developments, regulatory milestones, and market readiness will be key for those looking to invest in this pioneering space.

Who are some notable Upside Foods Investors?

Upside Foods is not just a trailblazer in the cultivated meat industry for its innovation, but has also has garnered attention for its impressive roster of notable investors. These investors are not only a testament to the company's groundbreaking technology and potential for market disruption but also play a pivotal role in shaping the future of sustainable food systems. Here are some of the most prominent figures and entities that have thrown their support behind Upside Foods.

Bill Gates

Bill Gates is among the most high-profile investors in Upside Foods. The co-founder of Microsoft and a well-known philanthropist, Gates has been vocal about his interest in sustainable food solutions that can combat climate change and improve global health, such as the plant-based meats produced by Impossible Foods. His investment in Upside Foods aligns with his broader commitment to innovative technologies that promise significant environmental benefits.

Temasek and the Abu Dhabi Growth Fund

Temasek and the Abu Dhabi Growth Fund co-led Upside Foods' Series C funding round, a staggering $400 million, which was touted as the largest in the cultivated meat industry to date, almost overshadowing Impossible Foods 2021 funding round. Temasek, an investment company headquartered in Singapore, has a strong portfolio in life sciences and agri-food, while the Abu Dhabi Growth Fund focuses on global investments that drive significant economic transformations. Their joint leadership in the funding round underscores the global interest in Upside Foods' mission and the potential for cultivated meat on a worldwide scale.

Cargill and Tyson Foods

Cargill and Tyson Foods, two giants in the traditional meat industry, have also injected their profits into Upside Foods, a company involved in the cultured meat sector, similar to Impossible Foods. This might seem surprising at first, but it reflects a strategic recognition of the shifting dynamics in food production. By investing in cultivated meat, these companies are positioning themselves at the forefront of innovation, ensuring they remain relevant in a future where alternative proteins play a crucial role in feeding the world.

Givaudan

Givaudan, another investor, is a global leader in flavors and fragrances. Their involvement with Upside Foods points to the importance of taste and sensory experience in making cultivated meat a success. As consumers seek sustainable yet delicious food options, Givaudan's expertise in flavor science will be invaluable in developing products that appeal to a broad audience, just as Impossible Foods has been able to create plant-based meat that delights consumers.

Other Notable Investors

Individual investors like John Doerr, Kimbal, and Christiana Musk, along with Sir Richard Branson, bring personal commitments to sustainability and innovation to their investments, bolstering Upside Foods with their entrepreneurial experience and passion for environmental causes.

With the support of financial powerhouses like Baillie Gifford, Norwest Venture Partners, SoftBank Vision Fund 2, and others, Upside Foods is well-equipped to navigate the complexities of scaling up its technology for commercial success.

The involvement of such notable investors in Upside Foods not only provides the financial backing needed to advance its mission but also offers a wealth of expertise, strategic guidance, and credibility. As Upside Foods continues to develop and commercialize their slaughter-free, cultured meat products, the support of these investors will be crucial in overcoming obstacles and achieving the company's ambitious goals. Their collective vision for a sustainable, efficient, and humane food system is a powerful endorsement of Upside Foods' potential to lead a new era in meat production.

Upside Foods Stock Investment FAQs

Is it publicly traded?

Currently, Upside Foods is a privately held company; however, potential investors should monitor the company's progress for indications of a future IPO.

When will Upside Foods IPO?

The timing of the Upside Foods IPO is a critical consideration for investors and is subject to the company's strategic decisions and market readiness. As of 2024 there do not appear to be any plans for an IPO in the next few years.

Is Upside Foods profitable?

Determining the profit margin of Upside Foods can be challenging as it operates as a private entity, which means it isn't obligated to disclose its financial figures to the public. This lack of publicly available data leaves many wondering about the company's current financial standing, including its revenue streams and margins, much like the conjecture for Impossible Foods prior to its $500 million funding round in 2021. Upside Foods, which recently received the green light from regulatory bodies like the USDA and FDA in 2023 to market its cultivated chicken products, is just beginning to navigate the commercial landscape. Initially targeting select restaurant partnerships, the company is methodically expanding its distribution channels as it works on boosting production capacity. Given its nascent stage in the commercialization process and the recent initiation of revenue generation, it's reasonable to infer that Upside Foods is still on the journey toward achieving positive earnings. This stage of business development necessitates significant investments in scaling up operations and enhancing product offerings, which are crucial steps for the company's growth but also indicate that reaching revenue generation stage may take some time.

Should I invest in Upside Foods?

Investors should conduct thorough research and consider their investment goals and risk tolerance when evaluating the potential of placing money into Upside Foods.

Can You Buy Upside Foods on Pre-IPO Marketplaces?

Pre-IPO marketplaces occasionally offer opportunities to purchase shares of companies like Upside Foods prior to their public listing, catering to investors seeking early access to potential high-growth companies.

Can I sell my Upside Foods stock?

Upon the company's IPO and subsequent listing, investors can potentially sell their Upside Foods stock on public stock exchanges, providing liquidity and potential returns on their investment.

When is the next funding round?

At the time of writing, there don't appear to be any near term plans for new funding rounds.

What are some other animal-free related companies?

Beyond Meat and Impossible Foods are leading the charge in the plant-based meat sector, offering burgers, sausages, and other meat substitutes that mimic the taste and texture of animal meat. Oatly has made a significant impact in the dairy alternative space, with its oat milk products becoming a staple in coffee shops and supermarkets worldwide. JUST Egg delivers a plant-based egg alternative that's making waves for its versatility and flavor. For those interested in animal-free fashion, Stella McCartney is a pioneer in luxury vegan clothing, proving that sustainability and style can go hand-in-hand. Lastly, Perfect Day is revolutionizing the dairy industry by producing animal-free whey protein through fermentation, offering a unique approach to creating dairy products without cows. These companies, among others, are at the forefront of the animal-free movement, offering consumers a wide range of choices that are kinder to animals and the planet.

What are some private companies like Upside Foods?

Upside Foods are not the only private company developing cultivated meat and fish products. Mosa Meats, known for creating the world's first cultured beef burger, is pioneering in the Netherlands, pushing the boundaries of cell-based meat production. Aleph Farms from Israel is distinguishing itself with the production of structured meat products, like beef steak, directly from animal cells. Good Meat, a division of Eat Just, has made headlines with its lab-grown chicken, gaining regulatory approval in Singapore, marking a significant milestone for the industry. Finless Foods is exploring the seas by focusing on cell-cultured seafood, aiming to reduce the environmental impact of fishing. SciFi Foods merges science with cuisine, working on lab-grown meats that promise efficiency and sustainability.

Will Upside Foods Submit a SEC Filing?

Upside Foods has not yet made any public announcements regarding a submission for an SEC filing, which would be a significant step towards an Initial Public Offering (IPO) or other forms of public investment. Typically, companies submit filings to the U.S. Securities and Exchange Commission (SEC) as part of the process to go public or to comply with regulatory requirements for certain financial activities. For Upside Foods, the decision to submit an SEC filing would depend on its strategic plans for growth, funding needs, and readiness to meet the regulatory and reporting requirements of being a public entity. While there's growing interest in the company's innovative approach to cultivated meat, any move towards an SEC filing would be a carefully considered milestone, signaling a new phase in Upside Foods' development and potentially offering investors a chance to participate in its future.

What is Upside Foods Ticker?

Currently, Upside Foods operates as a private entity and, as such, does not have a ticker symbol associated with public stock exchanges. Ticker symbols are unique identifiers assigned to publicly traded companies, facilitating easy trading and information retrieval about their stocks. Should Upside Foods decide to enter the public market in the future, it would then be assigned a ticker symbol. Speculatively, symbols such as "UF" or "USF" could be fitting choices, aligning with the company's name and branding. The selection of a ticker symbol is an important part of the process of becoming a publicly traded company, as it becomes a key identifier for the company in financial markets and among investors. However, until any official public offering is announced and completed, the speculation on Upside Foods' potential ticker symbol remains just that—speculation.