InsectBiotech raises €7.2 million to advance the conversion of agricultural waste

Arcano Partners' Asset Management division has invested €3.8 million in a funding round for InsectBiotech, a biotechnology company based in Andalusia. A consortium of U.S. investors contributed the remaining €3.4 million, bringing the total round to €7.2 million.

InsectBiotech is a biotechnology company that transforms agricultural waste, such as olive pomace (alperujo), into sustainable proteins and oils for animal nutrition, as well as regenerative soil improvement products. Following several years of research, testing and pilot-scale production, the company has validated its technology and is now preparing to scale up its manufacturing capacity. The new funding will enable InsectBiotech to expand production and accelerate the development of new research lines.

The company has developed proprietary patented technology based on the use of Black Soldier Fly larvae to bioconvert agricultural waste into proteins, oils and regenerative soil products. The technology is the result of years of research carried out in collaboration with the University of Granada and forms the foundation of InsectBiotech's business model.

Arcano has built a specialised platform for managing public investment funds, supported by a team with extensive experience in mobilising European and regional resources through market-based financial instruments. Through Impacto Andalucía Innovación y Desarrollo SICC, S.A.U. (https://arcanofdiandalucia.com/), whose capital is primarily sourced from the Andalucía FEDER 2021–2027 programme and the Regional Government of Andalusia through the Ministry of Economy, Finance, European Funds and Social Dialogue, Arcano manages €55 million allocated to projects and companies linked to Andalusia.

The European Investment Bank (EIB), acting as manager of the Andalucía R&D&I and Digital Fund of Funds financial instrument, selected Arcano through an open and competitive process as a financial intermediary to support investment and project execution in the fields of R&D, innovation and digitalisation across the region. The vehicle channels long-term financing through equity investments, quasi-equity instruments (including convertible notes and participating loans) and debt financing of up to €15 million, depending on project requirements.

Thanks to this investment, InsectBiotech will build a facility capable of processing 7,500 tonnes of agricultural waste per year in Andalusia, transforming olive pomace and other by-products generated by olive mills and agricultural operations across the region. The facility will be located in a rural area close to major sources of agricultural waste. InsectBiotech aims to contribute to rural economic development through job creation and collaboration with local suppliers.

Carolina España, Acting Regional Minister for Economy, Finance, European Funds and Social Dialogue, said: "At the Regional Government of Andalusia, we firmly believe that helping companies secure financing for projects such as this is essential to the transformation of our region. Through instruments like this one, we are delivering on our commitment to ensure that no company and no major project is left behind due to a lack of funding. Managed through the EIB and fund managers such as Arcano, this initiative has already enabled numerous projects to be developed across Andalusia, creating jobs and strengthening the regional economy."

Cristina Reina, Managing Director in Arcano Partners' Asset Management division, commented: "Arcano has built a specialised platform for managing public investment funds, backed by a team with extensive experience in mobilising European and regional resources through market-based financial instruments. Through Impacto Andalucía Innovación y Desarrollo SICC, we reinforce our commitment to supporting innovative companies while ensuring that public capital is efficiently deployed alongside private investment."

Ignacio Gavilán, CEO and Co-founder of InsectBiotech, added: "Our objective is to deliver commercially viable products at current market prices while generating measurable environmental impact by reducing agricultural waste and promoting more sustainable farming practices. The support of key investors such as Arcano Partners will enable us to scale both our research and production capabilities. We aim to reach meaningful production volumes, reduce Spain's and the EU's dependence on imported proteins, and promote regenerative agricultural models."

Investment in these types of vehicles involves risks. Please refer to the legal documentation available on the website of Impacto Andalucía Innovación y Desarrollo SICC, S.A.U.: https://arcanofdiandalucia.com/.

About InsectBiotech

Headquartered in Seville and operating in rural areas of Andalusia, InsectBiotech transforms agricultural waste, including olive pomace, into proteins, oils and soil regeneration products. Founded in 2023 by a team of experienced Spanish and European entrepreneurs, the company is committed to increasing the sustainable and competitive production of proteins and oils for animal nutrition, reducing agricultural waste and advancing regenerative agriculture.

About the EIB Group

The European Investment Bank Group (EIB Group) is the financing institution of the European Union, owned by its 27 Member States, and one of the world's largest multilateral development banks.

In 2025, the EIB Group signed €100 billion in new financing and advisory services for more than 870 high-impact projects across eight strategic priorities supporting EU policy objectives: climate action and environmental sustainability, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships, and the Savings and Investments Union.

In addition to providing long-term financing for major infrastructure projects, the EIB Group mobilises private investment for innovative and higher-risk companies and projects and plays an increasingly important role in the European markets for venture debt, venture capital, guarantees and securitisation.

In Spain, the EIB Group signed approximately €11 billion in financing and investment operations during 2025, complemented by an additional €2.9 billion through the Regional Resilience Fund under the NextGenerationEU programme.

About Arcano Partners

Founded in 2003, Arcano Partners is an independent global financial services firm with more than 20 years of experience in financial advisory and international asset management.

Today, Arcano operates through four business divisions:

Asset Management, with more than €14.5 billion in assets under management and advisory since 2006 across six asset classes: Private Equity, Credit Strategies, Real Estate, Sustainable Infrastructure, Venture Capital and Aviation Finance. Arcano has a strong commitment to sustainability and responsible investing and is recognised as a leading ESG-focused asset manager.
Investment Banking, providing advisory services on M&A, refinancing, restructuring and capital markets transactions across multiple industries, supported by sector-specialised teams and a cross-sector technology and digital capabilities platform.
Research & Strategic Advisory, delivering differentiated economic, real estate and market analysis, as well as geopolitical and technology trend analysis at both local and global levels, helping companies make better-informed decisions in increasingly uncertain environments.
Asset Finance, enabling investors to participate in the development of financing solutions for both tangible and intangible assets in Spain.

Arcano employs more than 260 professionals representing over 20 nationalities, operates from seven offices across Europe and the United States, and has established itself as one of Europe's leading independent firms in private markets.