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Investment proposal

Say Goodbye to Fatigue: The Hyper Fatigue Problem Solved

Are you feeling drained and fatigued?

With the constant overload of media and energy-draining events, Hyper Fatigue is becoming a growing problem. But simply adding more energy-rich foods to your diet is not enough. 


You need a solution that manages your energy, not just fills it up.


Introducing Flax: The Natural Energy Regulator. With its high fiber content, flax balances your energy intake without causing spikes. Not only that, it also supports a healthy gut microbiome—the key to defeating Hyper Fatigue.


But with EU regulations reducing the allowable cyanide levels in flax, access to this powerful solution has become limited. 


That's where Sprout Dynamics comes in. Our innovative sprouting technology reduces cyanide levels, giving you a safe and nutritious source of fiber (27%), Omega 3 (9x more than salmon), and protein for optimal digestion.


And the best part? Our sprouted flax can be used alone or as a natural ingredient in spreads, chips, and more, improving the nutritional value of your favorite foods.

Join the fight against Hyper Fatigue today.

Spout Dynamics about

Spout Dynamics is the world's first manufacturer of cyanid-free, high-protein & high-fiber products from sprouted flax seeds on a commercial scale.

Sprout Dynamics ApS is a spin-off from its parent company, CMYK Ingredients JSC, an EU Commission-accredited independent R&D Center.

 

Forbes named CMYK Ingredients food bio-hackers for their elegant solutions to malnutrition. For the last five years, they have been developing food products that before were previously considered to be industrially impossible. CMYK Ingredients made them a reality by introducing robotics and AI into classical food technologies.

For instance, we've obtained the first in the world cold-pressed cardamom and aniseed oils. This became the first step to creating a new industrial category of food flavours – the liquid herbs & spices, which are safe and universal in their usage, unlike essential oils and oleoresins. Liquid herbs are available in the Balkans, UK and Germany as a food ingredient as of 2017.

The clients have constantly been requesting final products from CMYK Ingredients. It has inspired a founder of the company, an ex-Procter&Gamble and ex-JTI finance manager Iryna Gavrylova de Garcia to invest $200K of her private capital into the development of Sprout Dynamics. This technology is the key to producing a commercially sound volume of final products made of sprouted flaxseed, cyanide-safe and highly easily digestible protein.  

This is a short story behind Sprout Dynamics. The company decided to locate its headquarters and the patent stack ownership in Denmark, while the production stays in Bulgaria. Such geographical choices shall enable the company to be close to the innovative Danish ingredients eco-system and simultaneously to the lowest in the EU expenses for technology transfer from idea to prototype and prototype to industry.

 

 

Highlights

  • One of 24 startups with a special invitation from Invest in Denmark in 2022

  • 3 fully developed product types of sprouted flaxseed (linseed)

  • 60t of sprouted flaxseed (linseed) in our prototype plant

  • LOI with Kesko - retail operator #2 in Finland

  • Working on "Improvement of quality of food in Swedish schools" project

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Assisted by Invest in Denmark, CMYK Ingredients has established their Nordic headquarter in Copenhagen to be close to the innovative Danish ingredients eco system.

Case of Invest to Denmark 

The market

The total flaxseed market is estimated to grow to US$15.7B by 2030. We are targeting the food service industry & retail chains. On hand today: the first sales in Bulgaria, LOI from Kesko Oyj (1800 stores) & dialogues with Danish & Swedish market leaders

 

Who are our customers and users in more detail?


Government policy towards malnutrition in the Nordic countries, particularly in Denmark, places all public kitchens (food service in schools, universities, hospitals, and nursing homes) into our domain. Such food operators usually source ingredients and semi-ready products (like burger patties, noodles, spreads) from wholesale suppliers like Dagrofa, Martin & Servera, Menigo, etc.

 

We see such systematic suppliers as our customers as they empower the systematic distribution of our products to many public kitchens. Retail chains (like COOP, Netto, and ICA) are also in the customer scope as they cater to the final consumers willing to purchase the products that address malnutrition.


The customer that is not in our scope is mainly unhealthy fast food agents, the so-called "malnutrition providers"

 

Steps we have taken to validate the market.

 

  • Sprout Dynamics has an LOI from KESKO Group (#2 in Finnish retail) and three more in progress with the leading Nordic operators

  • Sprout Dynamics is a 1/24 start-up invited by the Danish Ministry of Foreign Affairs to work under the Invest in Denmark program in 2022. It is a quality mark that matters for the local retail chains and systematic food service suppliers. The invitation, followed by the presentation of the business concept to the Food & Bio Cluster Denmark's ecosystem, was selected as it matches Denmark's country's strategy of becoming the global leader in plant-based ingredients.

  • The company started its production and sales in Bulgaria at its prototype production facility in April 2022 (60 t/year). The local sales accomplished in Bulgaria - a country with an extremely low level of education on the vitality of dietary fibre, Omega 3 and other nutrition essentials - provide the grounds for the sales projections in the Nordic countries and similar educated markets.

Size of the market.

€1B

 

What is our unique value proposition? What's new about what we're doing?

Sprout Dynamics has developed the mass production technology of the cheapest digestible plant-based macro and micronutrients, particularly dietary fibre, Omega 3, proteins and a wide range of minerals and antioxidants. 

Disclaimer & an opportunity window for Sprout Dynamics & sprouted flax: unsprouted flaxseed contains cyanide poison! Therefore as of 01.01.23 safety of flax is strictly controlled by the EC regulation 2022/1364.

 

For comparison, based on its nutrition facts, sprouted flax is: 

 

a) 7 times cheaper than fish as a source of Omega 3 at protein parity; 

 

b) 4 times cheaper than beans as a source of dietary fibre; 

 

c) 3-5 times cheaper than fibrous vegetables and rice as a source of dietary fibre; 

d) Bonus 1: replace dietary supplements as sources of zinc, copper, phosphorus, magnesium, iron, calcium, and potassium; 

 

e) Bonus 2: source of abundant antioxidants (lignans) that proved to be effective at cancer prevention and are excellent for balancing hormone levels in male & female body

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New regulation from January 2023 gives to us unique opportunities for our thechnology that reduce 80% of cianide in flaxseed

Link to regulation

Progress/Proof

Sprout Dynamics is one of 24 start-ups invited by the Danish Ministry of Foreign Affairs to work under the Invest in Denmark programme in 2022.

 

We have a financially feasible, safe and scientifically proven solution for cyanide in flax for industrial production.

 

The company has started production at its prototype production facility (60 t/year) and is preparing for a 25-fold scale-up to 1500 t/year to ensure the required initial coverage in Denmark, Sweden, and Finland.

 

Sprout Dynamics is an active member of Food & Bio Cluster Denmark https://foodbiocluster.dk/

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Objectives/Future

Over the next three years, Sprout Dynamics plans to:

 

  • Start selling ready-made convenience products through 2-3 retail operators Kesko, ICA Gruppen, COOP, etc.

  • Work with 1-2 supplier companies (Martin&Servera, Menigo, Compass, etc.) for 400 public kitchens (universities, hospitals, schools, nursery homes, etc.)

  • To achieve this, we will:

  • Build a plant that will produce 100 t/month of sprouted flax by 2025

  • Bring EBITDA of >€3M and the company's value to €40M

 

It will allow investors to triple their capital in the next three years in food technology under the following exit scenarios:

 

  1. We buy back equity capital 

  2. We are acquired by an operator such as Cargill or Orkla

Goal: Leadership in Plant-Based Ingredients

Disruptive technology => 10 production facilities

€ 3.6 m

EBITDA of 1 plant per 1 year

Contact our Team

Iryna Gavrylova. CEO

MBA in Finance Biotech visionary Managed $200M Angel investor, one exit

https://www.linkedin.com/in/iryna-gavrylova/

Volodymyr Lanin. CTO

Engineer, Innovations implementer, Managed production of 300+ SKUs
https://www.linkedin.com/in/v-lanin/

Kseniia Zazhyhina. CMO

Marketing strategist, Founder in an IT project on procurement, exit in 2014, Generated $50M contracts

https://www.linkedin.com/in/zazhigina/

Veselin Petrov. Life Science & AI

PhD in chemistry & ecology, Programming fundamentalist, Author: 44 scientific articles

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Invest in Sprout Dynamics

We will use Funderbeam.com

you can invest from €1000 to €50 000 and buy equity 

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