Wouter Bruins

"Every year, a staggering 6.5 billion chicks are killed in the global poultry industry, primarily male chicks, which hold little economic value. To address this harmful practice, my fellow student Wil Stutterheim and I began developing a machine in 2011 to determine the sex of chicks while still in the egg. This innovation ensures that only female eggs are incubated, marking a significant advancement in animal welfare.

In Ovo was founded in 2013, with a new funding round following in the summer of 2021, after an initial investment round in 2018. To manage this process effectively, we enlisted the help of Rembrandt. This was a necessary decision, as navigating the landscape with potential investors is very delicate; collaboration is essential, but interests can often be conflicting.

Investors often benefit from waiting as long as possible, while you are eager to move forward quickly. They typically seek extensive information, whereas you prefer clarity on whether they will invest and thus tend to keep your cards close to your chest for as long as possible.

Rembrandt M&A understands this game better than anyone. Initially, they made a genuine effort to thoroughly and expertly understand our company and business model. This enabled them to position the company perfectly and compile a highly detailed, multi-layered information memorandum.

A common mistake is trying to engage with every potential investor. To avoid this, Rembrandt organized the entire process in the form of an auction, selectively approaching a number of parties based on a shortlist. They ensured that information was provided to parties in the correct phases, as you don't want to reveal everything at once.

The Rembrandt team also set clear rules of engagement. Interested parties were, of course, welcome to meet and gain a better understanding of our company. However, a concrete bid had to follow before more in-depth information was disclosed. This way, Rembrandt maintained control over the process at all times.

This approach has the advantage of leaving you with only those parties who are genuinely interested, while you, as an entrepreneur, come across as amicable. Rembrandt advisors Bouke Tauw and Alex Nieuwenhuis managed all the tough negotiations on our behalf and were not afraid to push interested parties into action when necessary. Ultimately, we were left with a few parties who were allowed to conduct thorough due diligence.

In the end, we raised €34 million from new investors ECBF and technology partner Demcon, as well as existing shareholders Evonik, VisVires New Protein, and ABN AMRO for bank financing. Rembrandt represented the interests of multiple parties but successfully brought the process to a close with both new and existing shareholders.

With this capital, we will further refine our technology and install as many machines as possible at commercial hatcheries both domestically and internationally. Our ultimate goal is to make a real impact and eliminate the mass culling of male chicks. This accelerates the transition to sustainable practices in the poultry industry, benefiting our customers and society.

Recently, In Ovo made headlines again with a €40 million credit agreement between the Dutch company and the European Investment Bank, enabling the next steps in the development of the ‘Ella’ technology."

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