In Ovo Company Profile

Background

In Ovo, established in 2013 as a spin-off from Leiden University in the Netherlands, is dedicated to enhancing animal welfare and sustainability within the poultry industry. The company's primary mission is to eliminate the mass culling of male chicks—a prevalent issue where approximately 6.5 billion male chicks are culled annually worldwide due to their inability to lay eggs. By developing innovative biotechnological solutions, In Ovo aims to provide ethical and efficient alternatives to traditional practices in poultry farming.

Key Strategic Focus

In Ovo's strategic focus centers on the development and commercialization of technologies that enable early gender determination of chicken embryos within the egg. Their flagship product, the Ella® machine, utilizes advanced biomarker detection to identify the sex of eggs during incubation. This technology allows hatcheries to incubate only female eggs, thereby preventing the culling of male chicks post-hatching. The company targets large-scale hatcheries seeking to adopt more humane and sustainable practices, aligning with increasing regulatory pressures and consumer demand for ethical food production.

Financials and Funding

In Ovo has successfully secured significant funding to support its growth and technological advancements:

Series A Funding (2018): The company raised several million euros, co-led by Evonik Venture Capital and VisVires New Protein Capital.

Series B Funding (2022): In Ovo secured €34 million to accelerate international expansion and scale-up plans. This round was supported by impact investors ECBF and ABN AMRO, with follow-on investments from existing shareholders Evonik and VisVires New Protein, and additional investment from technology partner Demcon.

The capital raised is intended to enhance the scalability of the Ella® technology, expand market reach across Europe and beyond, and invest in further research and development initiatives.

Pipeline Development

In Ovo's primary product, the Ella® machine, has achieved significant milestones:

Commercial Deployment: Since December 2020, the Ella® machine has been operational in commercial hatcheries, successfully hatching over 150,000 chicks without the need for culling male counterparts.

Scaling Capabilities: The company is continuously improving the technology to increase processing speed and accuracy, aiming to meet the demands of large-scale hatcheries.

Future developments include enhancing the machine's capacity to process up to 5 million eggs per year per unit and expanding its application to international markets.

Technological Platform and Innovation

In Ovo's innovation is anchored in its proprietary biomarker detection technology:

Proprietary Technologies: The Ella® machine employs a patented method that involves extracting a small sample of allantoic fluid from the egg through a tiny, resealable hole. This sample is analyzed using mass spectrometry to detect specific biomarkers indicative of the embryo's sex.

Scientific Methodologies: The process is designed to be rapid and non-invasive, ensuring minimal disruption to the incubation process. The technology is capable of determining the sex of eggs as early as day nine of incubation, with ongoing research to achieve even earlier detection.

This innovative approach sets In Ovo apart by offering a scalable, efficient, and ethical solution to a longstanding issue in the poultry industry.

Leadership Team

In Ovo's leadership comprises experienced professionals committed to the company's mission:

Wil Stutterheim: Co-Founder and Managing Director. With a background in biomedical sciences, Wil has been instrumental in developing the company's technological innovations and guiding strategic direction.

Wouter Bruins: Co-Founder and Managing Director. A biologist by training, Wouter has played a key role in translating scientific research into practical applications within the poultry industry.

Tiemen Dalhuisen: Chief Financial Officer. Tiemen oversees the company's financial strategy, ensuring sustainable growth and effective allocation of resources.

The leadership team is supported by a board comprising representatives from key investors, including Evonik Venture Capital, VisVires New Protein Capital, ECBF Management, and Libertatis Ergo Holding.

Competitor Profile

Market Insights and Dynamics

The global poultry industry faces increasing scrutiny regarding animal welfare practices, particularly the culling of male chicks. Regulatory changes in countries like Germany, France, and Italy have led to bans on this practice, creating a demand for viable alternatives. In-ovo sexing technologies are emerging as the preferred solution, with several companies developing various methodologies to address this issue.

Competitor Analysis

Key competitors in the in-ovo sexing market include:

Seleggt GmbH: A German company that has developed a hormone-based testing method capable of determining the sex of eggs on day nine of incubation. Their technology has been commercially available since 2018, with eggs sold under the "Respeggt" label.

Plantegg: Utilizing PCR methods to determine the sex of eggs, Plantegg's technology also operates around day nine of incubation. They aim to provide a scalable solution for large hatcheries.

Hypereye: A Canadian initiative developing spectroscopic technology for in-ovo sexing, aiming for high accuracy and processing speeds suitable for commercial hatcheries.

In Ovo differentiates itself through its rapid, non-invasive biomarker detection method, which integrates seamlessly into existing hatchery workflows and offers scalability to meet industry demands.

Strategic Collaborations and Partnerships

In Ovo has established significant partnerships to bolster its market position and technological capabilities:

Evonik Industries: A strategic investor since 2018, Evonik has provided both financial support and industry expertise, aiding in the scaling and commercialization of In Ovo's technology.

VisVires New Protein Capital: As a co-lead investor in the Series A funding round, VisVires has contributed to In Ovo's growth strategy and market expansion efforts.

Demcon: A technology partner and investor, Demcon has collaborated with In Ovo to enhance the engineering and manufacturing aspects of the Ella® machine, ensuring it meets the operational demands of large-scale hatcheries.

These collaborations have been instrumental in advancing In Ovo's mission and facilitating the adoption of its technology across the poultry industry.

Operational Insights

In Ovo's strategic considerations include:

Market Position: By offering a solution that addresses both ethical concerns and operational efficiency, In Ovo positions itself as a leader in the in-ovo sexing market.

Competitive Advantages: The company's technology stands out due to its speed, accuracy, and non-invasive nature, providing a practical and scalable solution for hatcheries.

Regulatory Alignment: With increasing legislation against male chick culling, In Ovo's technology aligns with regulatory trends, offering hatcheries a compliant and future-proof solution.

Strategic Opportunities and Future Directions

Looking ahead, In Ovo aims to:

Expand Market Reach: Leverage recent funding to enter new markets, particularly in countries implementing bans on male chick culling.

Enhance Technology: Continue research and development to improve the Ella® machine's processing speed and accuracy, aiming for earlier sex determination during incubation.

Diversify Product Offerings: Develop additional technologies that address other ethical and sustainability challenges within the poultry industry.

By capitalizing on its technological strengths and aligning with global trends toward ethical food production, In Ovo is well-positioned to lead transformative changes in the poultry sector.