The F&A sector is often not an appealing space for startups due to thin margins. This has led to countless examples of start-ups starting with the ambition to disrupt this sector eventually pivoting to adjacent sectors such as cosmetics due to higher profit margins. Will they ever come back to F&A or just give up on the initial narrative?
Platform technology startups come up with alternative pathway allowing them to operate in multiple industry verticals. Once the platform proven in one industry, they can develop new applications at a hastened pace. This is a common strategy used in the pharmaceutical industry as it provides the company with multiple options to succeed commercially, thereby reducing the risk for investors.
This is the strategy Tidetron has embarked on. Their synthetic biology platform combines improved enzyme efficiency, production productivity, resulting in a competitive offering. On the back of the platform strategy, the start-up has quickly scaled up to producing 50 products across the F&A and adjacent sectors, allowing them to be economically viable while delivering against the big ambition of feeding the world sustainably.