'We had really hard times along the way': Aqua-Spark's co-founder Amy Novogratz on motivation, sea lions and working with Jamie Oliver

From an interest in food, social policy and media, the path towards the sustainable aquaculture investments sector was not always evident to Aqua-Spark’s co-founder Amy Novogratz.

From the start, however, Novogratz always had a sense of mission with all her work, so the fact she, together with husband Mike Velings, set up the world’s first aquaculture fund is not surprising, nor out of character.

It has now been 10 years since the duo launched Aqua-Spark, and the firm has during the last few years been followed by a handful of other aquaculture, ocean and seafood-focused investment firms.

Its current portfolio includes 25 firms across the aquaculture value chain.

“Now that we have access to farm tech, alternative feed ingredients, traceability and elements needed to produce sustainably, everything is starting to progress. We are at a place where things are finally starting to move towards a bigger picture."

Velings and Novogratz first met at a week-long expedition in the Galapagos in 2010, where Novogratz worked on a TED talk with US oceanographer Sylvia Earle, and their days were split between learning about the ocean and swimming with sea lions.

“We realized we were both keen on a starting a business that could have a positive impact on ocean health, and we kept coming back to how much we depend on the ocean for food and how this system could improve.”

Initially, they were both shocked at the realization of how little they knew about aquaculture, despite the size and growth trajectory of the industry.

Challenges

It wasn’t only Velings and Novogratz that were unaware about the scope of the global aquaclture sector; investors too were largely in the dark.

“Fundraising was a real challenge. No one knew about the sector, there was no farm data available, nor was there a track record of private investments in the space. Many liked the idea, but the space felt too foreign and complex.”

The partners were public about their idea from the start, hosting media dinners and speaking at events. Veilings even delivered a TED talk on the subject in the very early days.

"I'm not sure if it’s always right to publicly claim something so early, but for us this worked. We needed a network and dealflow, we wanted to create awareness and were purposefully public about our commitment, which kept us going through the very sticky times. ”

The first larger investor, Netherland-based fund Stichting DOEN, came onboard in 2014, which led the fund to close with €8.3 million ($8.9 million) later that year.

Ahead of the curve

The partners faced really hard times and many of its portfolio companies almost didn’t make it, including those that now are its top performers.

The journey with companies, including feed group Calysta and feed tech company eFishery, were not straight forward, and the firm invested in the supply before the demand was there. Others such as seafood company Love the Wild didn’t make it.

“I have learned that change is never linear or easy, and I get motivation and drive from challenges. There’s an inner sense, of 'oh yeah, I’ll show you what’s possible' that keeps me going."

"We've had quite a bit of challenges and a need to find a different way forward during the last decade," she said.

Drive

But despite all the hard times, the aquaculture industry has never made Novogratz question her mission. The work matters too much, and the planet is suffering a crisis right now.

“The truth is that a lot of our current human issues are related to all the crappy food we are all eating, and this bit is just as paramount. Our global food system doesn’t currently make nutritious diets convenient or affordable.”

Novogratz, who grew up between Washington DC and New York, was conscious about food and health from an early age.

“This has always been a big thing for me.”

She had health problems as a child and underwent surgery, which made her link nutrutious, good food to personal health from an early age.

However, never once did any doctor bring up the importance of food and diet to her.

In 2009, Novogratz worked with British TV star and chef Jamie Oliver, which only further increased her awareness of the importance of healthy food.

Keep going

Novogratz is constantly reminded of how hard all Aqua-Spark's entrepreneurs’ work and how dedicated they are, and she prefers to work with people that she also likes to spend time with.

"I don’t need much to keep going in the morning. It’s just a privilege to be part of this journey and this industry," Novogratz said.

The next step for the aquaculture and ocean-focused investment sector is now to move into the mainstream.

“To reach necessary scale and to make true sustainability the commercial norm across the industry might take at least another 10 years. But with much more momentum, direction and cooperation, we have now reached a new phase of this movement."