an all-you-can-read buffet on planning, launching, and growing a good food business. www.gfi.org.in benefiting from the Manual’s all-you-can-read buffet of unmissable knowledge, and Fast Company honoring it in its World Changing Ideas awards in 2019. Meanwhile, the Good Food Institute India team has been working Dear Good Food Innovator, diligently to build the smart protein ecosystem from the ground up in India. We’re currently seeing the sector take exciting strides, with As I write this in February 2021, the global alternative protein sector investor attention focused on the sector and multiple product launches continues to go from strength to strength. Rain, shine, or pandemic and startups formed across all categories. These innovators are working — foods made from plant-based, cultivated, and fermentation-derived with us to leverage India’s unique potential - our wonderful talent base, proteins are a juggernaut, and are demonstrating a model to save the our agricultural biodiversity, our track record in manufacturing and planet. Products that taste the same or better, while turning the tide biopharma - and grapple with its unique challenges. The opportunity of climate change, public health risk, and food insecurity? Now that’s to cater to domestic demand for delicious, sustainable, nutritious smart smart protein. The best time to devote our collective talents to this protein foods as well as become a supply and manufacturing hub for the sector was decades ago. The next best time is now - and we’re here to global sector is immense. All of this progress is set against the backdrop help you get started. of rising demand for meat, eggs, and dairy as incomes continue to rise — making this the critical decade for food system transformation in the At the inaugural Good Food Conference (2018) in Berkeley, U.S.A., our world’s largest democracy. partners at the Good Food Institute U.S. launched the first Good Food Startup Manual — the first ever dedicated guide to help smart protein The India Good Food Startup Manual is our guide to making that entrepreneurs get their good food dream up and running. The response transformation happen. It distills our expertise and experiences with was truly fantastic, with hundreds of current and aspiring entrepreneurs the challenges of planning, setting up, and funding a company, as well GFI.ORG.IN 2 as developing and launching a smart protein product. We’ve accounted Lastly, the global network of Good Food Institute organizations is for India’s unique business and scientific environment, and jam-packed enabled entirely by philanthropy, which is critical to achieving our the Manual with nuggets of knowledge that will supercharge you on mission. To discuss how you can be part of this transformative work your journey. You’re in for an exciting time with plenty of hurdles along with your gift or grant, please get in touch at [email protected]. We’re the way — but when the potential payoff is a more healthy, sustainable deeply grateful for your support and partnership in our Mission for and just food system, that makes it all worth it. Smart Protein. As you navigate the Manual and your journey, remember that your Wishing you the best on your own transformative good food startup success is our success. It won’t always be easy, but the GFI India team journey, will be with you every step of the way. We’re here to provide mentorship, resources, community, access to our network, and more. We’ve helped companies like Memphis Meats, Good Catch, and many more from their very early stages to where they are today — and we can help do that for you, too. Varun Deshpande Managing Director, The Good Food Institute India GFI.ORG.IN 3 HOW TO USE THIS MANUAL We created this guide to help you understand the steps involved in starting an alternative protein company. We hope that you find it helpful not only for providing information on topics you’ve heard of before, but for flagging steps that you might not have even considered. Each section contains links to internal open-access resources hosted on the GFI and GFI India website, as well as external resources so you can dive deeply into the topics that are most relevant to you. The Startup Manual is just one key resource that GFI India provides entrepreneurs. If you’d like to get plugged-in to the broader GFI India community please fill out this GFIdeas KEY India Intake Form. If you are not sure of your specific plans, select a category that best describes you and you’ll hear Within-document links back from us! eg. Food Industry Product Development External links to handy resources *This is the obligatory fine print: this guide and other published content from GFI India is not legal eg. GFI India's blog advice, and should not be construed as such. It has been prepared for general informational purposes only and readers are encouraged to seek professional counsel to address questions specific to their situation. 4 TABLE OF ABOUT THE GOOD FOOD INSTITUTE INDIA CONTENTS Introduction 10 SECTION 1: PLAN YOUR COMPANY Join the GFIdeas India Community 17 Learn about the Plant-based and Cultivated 18 Meat Industry in India and the world Find a Co-founder and Pick a Company Idea 20 Conduct a Feasibility Study 21 Write a Business and Technical Plan 23 GFI.ORG.IN 5 TABLE OF CONTENTS SECTION 2: SET UP YOUR COMPANY Tax Accounting & Auditing 41 Accounting Software 42 Hire a Lawyer 27 Cashflow 42 Determine your Company Structure and Form 28 Invoicing 43 Your Business SECTION 3: FUND YOUR COMPANY Incorporation and Post-Formation Set Up 30 Activities Accelerators 46 Founder’s Stock 34 Types of Funding 48 Business Insurance 34 Equity 48 Debt 49 Hiring Workers 35 Convertible Debt 49 Compensation 36 Options and Warrants 50 Employee Benefits 37 Grants 50 Advertising and Recruitment 37 Crowdfunding 51 Reviewing Applications and Interviewing 38 Venture Capital (VC) Fundraising 52 Making an Offer 38 Welcoming and Onboarding 39 Understand Your Legal Needs and Obligations 54 Securities Laws 54 Accounting and compliance 39 Decide How Much Money to Raise 55 Financial Accounting 40 Create a Pitch Deck 56 Managerial Accounting 40 Identify Potential Investors 58 GFI.ORG.IN 6 TABLE OF CONTENTS Get Introductions and Pitch to Investors 60 Packaging Design 87 Term Sheets 64 Packaging Materials 88 Financial Terms 65 Food Labeling - Marketing Component 89 Control Terms 66 Product Testing and Quality Assurance (QA) 91 Managing your Board of Directors 67 Capitalization Tables 68 Consumer Testing 96 Liquidation Analysis 68 Intellectual Property (IP) 98 Due Diligence 68 Ownership 98 Closing the Deal 69 Patents, Copyrights, Trademarks, and Trade Secrets 98 SECTION 4: CREATE YOUR PRODUCT Non-Disclosure Agreements (NDAs) 100 Product Development Frameworks 72 Regulatory Considerations 100 Observe-Orient-Decide-Act (OODA) Loop 74 Food Safety and Standards Regulations 101 Stage-Gate Process 76 Food Labeling - Regulatory Component 102 Recalls 102 Food Industry Product Development 79 Traceability 102 Scaling Up and Hiring a Food Scientist or 83 Determining the Regulatory Status of Novel Food Ingredients 104 Technical Consultants SECTION 5: SELL YOUR PRODUCT Manufacturing 85 108 Packaging 87 Developing Your Marketing Plan GFI.ORG.IN 7 TABLE OF CONTENTS Step 1: Set Your Marketing Goals and Objectives 110 ANNEXURE II Step 2: Conduct a Situation Analysis 110 Scientific Resources 153 Step 3: Define Your Competitive Positioning and Brand 110 Strategy Step 4: Develop Your Marketing Mix 118 ANNEXURE III Step 5: Build Your Marketing Plan 118 Talent Database 154 Marketing Mix 120 ANNEXURE IV Product 120 Accelerators and Incubators 154 Price 120 Place 121 ANNEXURE V Promotion 127 Smart Protein Ecosystem Database 155 SUMMARY OF AN ALTERNATIVE 145 PROTEIN STARTUP’S JOURNEY If you have questions about the GFIdeas community or this user guide, please contact GFI’s Innovation ANNEXURE I Specialists, Nicole Rocque at [email protected] Get involved with the startup ecosystem in 153 or Shardul Dabir at [email protected] India GFI.ORG.IN 8 ABOUT THE he Good Food Institute India (GFI India) is part of an T international network of nonprofits with partners in GOOD FOOD Brazil, Israel, U.S., Europe, and Asia Pacific, on a mission to INSTITUTE INDIA build a healthy, sustainable, and just global food system. Since our establishment in 2017, GFI India serves as the central thought leader and convening body in the space of plant-based, cultivated and fermentation-based meat, eggs, and dairy that are collectively known as the "alternative protein" or the "smart protein" sector. With unique insight across the scientific, policy, industry, and investment landscapes, we are using the power of food innovation and markets to accelerate the transition of the world’s food system toward alternative proteins. In building the sector from the ground up in India, we’re aiming to establish a model for its growth all across the developing world. 9 INTRODUCTION So you want to start a plant-based, cultivated, or fermentation- billion by 2022. Forecasted to become the most populous country in the derived meat, eggs or dairy company? Congratulations! You’re about world, combined with factors such as increasing disposable income and to embark on an exciting journey. It won’t always be easy, but GFI India upward social mobility, India will be amongst the largest contributors to will be with you every step of the way. We’re here to provide advisory, the increasing demand for protein. resources, community, access to our network, and more. GFI has helped companies like Imagine Meats, Good Dot, and Goodmylk from their Fulfilling this demand through animal-sourced foods will likely involve a very early stages — and we can help you, too.