Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week
for 24 weeks
// //

Impossible Foods Inc is preparing for a public listing which could value the U.S. plant-based burger maker at around $10 billion or more, according to people familiar with the matter.

This would be substantially more than the $4 billion the company was worth in a private funding round in 2020. It would highlight growing demand for plant-based meat products, driven by environmental and ethical concerns among consumers.

Impossible Foods is exploring going public through an initial public offering (IPO) in the next 12 months or a merger with a so-called special purpose acquisition company (SPAC), the sources said.

Story continues below advertisement

The Redwood City, California-based company has worked with a financial adviser to help manage discussions with SPACs after receiving offers at a lucrative valuation, the sources said. Going public through a SPAC could dilute existing Impossible Foods shareholders, however, by a greater extent than an IPO, the sources added.

A SPAC is a shell company that raises funds in an IPO with the aim of acquiring a private company. For the company being acquired, the merger is an alternative way to go public over an IPO.

Merging with a SPAC has emerged as a popular IPO alternative for companies seeking to go public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.

The sources, who requested because the discussions are private, cautioned that the deliberations are subject to market conditions and the company may opt to pursue another private fundraising round.

A spokeswoman for Impossible Foods declined to comment.

Impossible Foods, whose backers include venture capital investors Khosla Ventures and Horizons Ventures, as well as celebrities like tennis star Serena Williams and rapper Jay-Z, has so far raised $1.5 billion in the private market, according to PitchBook data.

In 2020, U.S. plant-based retail sales hit $7 billion, up 27% year on year, according to a report by the Good Food Institute and the Plant-Based Foods Association (PBFA).

Story continues below advertisement

Founded in 2011, Impossible Foods sells its meat-free burgers and sausages in grocery stores and also has partnerships with the likes of Burger King and Disney.

The number of locations where Impossible Foods’ burgers are sold has increased in the past year to more than 20,000 from 150 stores, the company has said.

Shares of rival Beyond Meat Inc are trading more than 400% above its IPO price from 2019.

Impossible Foods Chief Financial Officer David Lee stepped down earlier this year to join indoor farm builder AppHarvest , with David Borecky currently serving as the company’s interim CFO.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies