Mandalay backs agtech startups Naturo and Nbryo in first deployment of new $130m QIC fund

Mandalay, which specialises in seed to Series-A venture capital for agrifood technology startups, has made undisclosed investments in Naturo and Nbyro, paving the way for the venture capitalist to take a hands-on approach to helping the companies commercialise their respective technologies.

The Brisbane-based Mandalay was among an initial five venture capital firms selected by the Queensland Government to receive a portion of the newly established Venture Capital Development Fund (QVCDF) which is aimed at investing in the state’s startups.

The QVCDF offers up to $20 million in matched funding to approved venture capital firms, providing that these VC firms spend 1.25 times the allocated amount within Queensland.

Naturo is pioneering a non-thermal processing technology, known as the Haelen method, that is said to improve the digestibility of milk and triple its shelf life, while Nbryo’s cutting-edge technology enables large-scale commercial production of bovine embryos. By significantly accelerating genetic improvement processes, Nbryo’s technology allows livestock producers to achieve in seven days what would traditionally take seven years.

"These companies exemplify the innovative spirit of Queensland and align perfectly with our mission to drive sustainable growth and technological advancement in the agritech and food sectors,” says Mandalay’s managing partner Mark Gustowski.

“This investment not only accelerates their development but also enhances Queensland’s reputation as a leading destination for startup innovation."

Naturo founder and CEO Jeff Hastings says his company is uniquely positioned to make a significant impact in the sector amid a new focus by dairy processors on higher value, ready-to-drink products and consumer demand increases for health-based, convenient and functional nutrition products.

"Through our revolutionary Haelen technology, we're not just transforming milk; we're setting new standards for nutritional integrity and freshness in the ready-to-drink market,” says Hastings.

“Our process responds directly to the consumer's growing preference for natural, health-enhancing products that don’t compromise on taste or quality. This innovation represents a leap forward in functional nutrition, delivering unparalleled benefits to both processors and consumers globally."

The Haelen method is said to increase the shelf life of fresh milk from a standard 14 days to 60, enabling sea freight export shipping options for the first time.

The process has received formal approval for both domestic and international sales, marking it as the first non-thermal milk technology to be approved for export.

Nbryo was founded in 2020 by pharmaceutical entrepreneur Euan Murdoch and Nick Cameron, who led and managed sister livestock breeding company Nindooinbah.

The company, which began commercial operations this year led by CEO Gerard Davis, has raised more than $20 million in funding from investors and grants since inception, including major contributions from the Bill & Melinda Gates Foundation and Meat and Livestock Australia.

Davis says the Nbryo technology is breaking down barriers to advanced breeding techniques as it seeks to meet the growing global demand for efficient and sustainable livestock production while increasing feed efficiency and reducing methane emissions.

"Embryo transfer as a technology has long been a powerful tool for accelerating genetic improvement in livestock, but its adoption has been limited to a small fraction of the industry due to its high cost and complexity,” he says.

“Nbryo is revolutionising this landscape by making embryo transfer technology accessible and affordable for all commercial producers to achieve the rapid genetic advancements typically reserved for the top tiers of breeding."

Davis says Mandalay’s investment marks a major milestone for the company and underscores confidence in its mission.

“Nbryo is very excited to be partnering with Mandalay and receiving their financial support is a key endorsement of our plans and technology development progress,” he says.

“We look forward to leveraging their knowledge, networks and experience as we commercialise the Nbryo platform with the intent to have a significant positive impact on productivity and sustainability of beef and dairy systems in Australia and globally.”

Gustowski notes that less than 2 per cent of Australian venture funding is currently directed towards agritech startups, but Mandalay aims to adjust this imbalance by showcasing the sector's potential for delivering venture-style returns.

The Mandalay partner sees his firm’s focus on food security, sustainability and ESG principles as underscoring the “critical and lucrative opportunities within agritech, positioning it as a key area for impactful investment”.

“QIC’s investment into Mandalay, alongside the NRMA and a suite of family offices, provides a signal to the market that the sector remains a priority for Australia,” says Gustowski.

“It also gives comfort to investors that don’t have a speciality lens in agrifood tech that the Mandalay team have ‘best in class’ processes and governance around our investments.”

Gustowski points to the importance of Australia’s agricultural sector to meeting global food needs as more than 70 per cent of its production worth about $80 billion exported each year.

“This positions our agritech and foodtech sectors to transform Australia into Asia's food bowl,” he says.

“By leveraging our startups, we can export not only premium products but also advanced capabilities and technology, driving innovation and growth in international food markets.”