From Waste to Feed — Ruminant Roughage Pretreatment Platform
Outdoor fungal pretreatment → roughage supplement → circular bio-fertilizer
The Problem
Three Expensive Problems:
- ✗ Municipalities pay ₪367/ton just to crush garden waste — with no disposal solution
- ✗ Israel imports roughage/alfalfa/fiber supplements — supply + FX risk
- ✗ No farm-scale outdoor lignocellulose pretreatment solution anywhere
The Solution: Pretreatment Platform (V9.0)
Stage 1: Fungal Pre-treatment (6-8 weeks)
Outdoor SSF with Pleurotus ostreatus in silage bunkers. Selective lignin degradation (≥30% target). No climate control.
Yield: Pretreated substrate suitable for ruminant roughage
Stage 2: Ruminant Roughage Production (Base Case) (Days to weeks)
Pretreated substrate sold directly as roughage supplement: ensiled bulk (₪700–900/ton wet) or solar-dried pellets/blocks (₪2,000–3,000/ton).
Yield: Direct sale to dairy, beef, and sheep/goat farms
Stage 3: Bio-Fertilizer Production (4-5 weeks)
A portion of pretreated substrate composted and pelletized into organic soil amendment (₪1,500/ton bulk).
Yield: Circular fertilizer back to orchards
Year 7: ₪25.1M revenue · 63% EBITDA margin · EBITDA+ Year 4
Why Now? Why Us?
The Science is Proven — The Scale Isn’t
- ✓ 92+ published studies validate fungal pretreatment improves ruminant digestibility
- ✓ Pleurotus pretreatment repeatedly shown to increase intake + performance in cows, sheep, goats
- ✓ Zero farm-scale outdoor commercial implementation anywhere
BioMill's Unique Position
- Founder: 20+ years bioprocess scale-up (Yemoja, CollPlant)
- Expertise: Mycology + Bioprocess Engineering + farm-scale operations
- Base Case: Ruminant roughage (established market) · BSF optional upside
Market Opportunity
Business Model & Unit Economics
Revenue Mix (Year 7: ₪25.1M)
Unit Economics (per 10 tons input)
Future Opportunities (Explored in Parallel)
Not in base case — de-risked upside we will validate alongside core operations
Poultry Feed
Downstream extension once roughage is established
Premium Fertilizer Retail
Small % blended into high-margin retail bags
BSF (Optional Upside)
Activation without changing Stage 1 if market conditions improve
Export (MENA)
Pelletized roughage blocks for premium/export markets
Traction, Milestones & Team
Completed
- ✓ Proof-of-concept validated
- ✓ Fungal strains selected
- ✓ Israeli BSF provider partnership
- ✓ Municipal gate fee model validated (₪367/ton market)
- ✓ South Golan facility location (near Shamir Institute)
Next 12 Months
- ▶ Month 3: Facility operational
- ▶ Month 5-6: BSF larvae arrival
- ▶ Month 6: First gate fee revenue
- ▶ Month 10: First protein + fertilizer revenue
- ▶ Month 12: Pilot complete
Year 2-3 Goals
- ○ 25 tons/month
- ○ 3-5 aquaculture customers
- ○ 3-5 pet food brand contracts
- ○ Organic certification secured
Founding Team
Erez Ashkenazi CTO
20+ yrs bioprocess scale-up, founded Yemoja, Yigal Alon Award
Pini Marco COO
PhD, 6 yrs microalgae/bioprocess R&D, VP R&D at Yemoja
Proven collaboration: Both worked together at Yemoja successfully
Competitive Advantage
Proprietary IP
Outdoor fungal pretreatment platform (no climate control) — the core R&D moat
Revenue-Generating Feedstock
Municipalities pay ₪300-400/ton gate fee (net ₪255/ton after preprocessing)
Market Pull
Israel imports ₪2B+/yr in ruminant feed — established demand for local roughage
Simpler Operations
Bunkers → ensile/pelletize → deliver (no live insect rearing in base case)
Platform Optionality
Ruminants are primary; fertilizer/mulch are proven; BSF optional upside
Founder Expertise
20+ years biotech scale-up & mycology-driven bioprocess design
The Ask & Use of Funds
₪10M pre-money | ~23% equity
Farm-scale model: polytunnels, bunkers, tractor. Gate fee revenue starts Month 6.
Financial Projections
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | ₪0.35M | ₪0.65M | ₪2.0M | ₪4.2M | ₪7.08M |
| EBITDA | -₪586k | -₪600k | -₪289k | +₪500k | +₪1.83M |
| Margin | neg | neg | neg | 13% | 25% |
| Tons Processed | 60 | 100 | 300 | 600 | 1,000 |
Exit Strategy & Returns
A: Series A Exit
Year 3, ₪25-40M valuation
B: Strategic Acquisition
Year 5-7, ₪52-130M at 4-8x revenue
C: Fertilizer-Only Pivot
Downside protection
Potential Acquirers
Protix, InnovaFeed (global BSF leaders — €900M+ raised) | ICL, Haifa Chemicals (Israeli ag-tech/fertilizer giants)
If BSF underperforms: gate fees + composting business with ₪8-12M revenue. Downside protection: 1x liquidation preference | Diversified revenue | Hard assets
Impact & ESG
Contributes to 7 of 17 UN SDGs · B-Corp target by Year 3 · Profitable AND Planet-Positive
₪300-500k/year local economic activity in Galilee · 10-15 workers trained in biotech & entomology
Three Firsts
1st Outdoor SSF Pretreatment Platform
Farm-scale lignocellulose pretreatment with no climate control
1st Waste → Roughage in Israel
Local alternative to imported roughage/alfalfa/fiber supplements
1st to Close the Waste-to-Feed Loop
Municipality → Gate Fee → Pretreatment → Roughage → Fertilizer back to orchards
~23% Equity | ₪10M Pre-Money
Waste management company with biotech upside. Revenue from Day 1. Five revenue streams. EBITDA+ Year 4. First-mover in Israel.
Proven science. Zero competition. First to market.