Founders Fund’s outlier bet on humanely killed fish

At a recent TechCrunch StrictlyVC event in El Segundo, Saif Khawaja, the founder of Shinkei Systems, engaged in a thought-provoking discussion with Delian Asparouhov from Founders Fund, tackling an uncommon but crucial issue: how to determine if a fish is experiencing stress. This inquiry aligns perfectly with Shinkei's mission. The company's flagship product, Poseidon, is a refrigerator-sized robot designed for fishing vessels. Utilizing advanced computer vision, Poseidon identifies fish species and precisely targets the brain to ensure a swift and humane death. This technique not only prevents suffering but also enhances the quality of the fish by minimizing the release of stress hormones that can compromise flavor and shelf life. Shinkei's method draws inspiration from ike jime, a time-honored Japanese practice where fish are dispatched immediately to preserve their quality. By integrating automation into this process, Shinkei aims to revolutionize how fish are harvested and processed, making it an industrial-scale solution. Khawaja's journey to founding Shinkei is remarkable. His passion for fishing began during family trips in the Middle East, but it wasn't until college that he was inspired by an essay on animal rights that he envisioned a solution for humane fish harvesting. Traditional fishing practices often lead to prolonged suffering for fish, which parallels the issues seen in livestock production. Beyond just a killing mechanism, Shinkei is evolving into a comprehensive fish harvesting and processing operation. The company provides Poseidon machines to fishermen at no cost and offers them a premium for their catch, thus streamlining the entire process from boat to consumer. The freshly caught fish are then processed at Shinkei's facility in Tacoma, Washington, and marketed under the brand Seremoni as “ceremony grade” fish. Currently, Shinkei's fish can be found on the menu at Erewhon, a trendy Los Angeles grocery store, where it's promoted for its sustainable and humane harvesting methods. The success of this pilot program could lead to broader distribution if it resonates with consumers. Khawaja reports that Shinkei supplies fish to restaurants with a total of 50 Michelin stars, and in a groundbreaking move, Japan has begun importing American-caught fish, a market historically dominated by domestic products. The key question remains: Will consumers be willing to pay a premium for fish that has been humanely killed? Khawaja believes that the practical benefits, such as extending shelf life from seven days to up to 14 days, will speak volumes to buyers. Shinkei is also developing an in-plant sensor system that will assess the shelf life of individual fish, addressing a significant issue in the seafood supply chain where spoilage can lead to substantial losses. Founders Fund's investment in Shinkei reflects a broader strategy of supporting unconventional ventures. Asparouhov noted that there is a lack of competition in the field of automated fish processing, positioning Shinkei uniquely in the market. The firm is also diversifying its portfolio away from typical categories like AI, focusing instead on innovative hardware. As the seafood industry faces challenges such as labor shortages and reliance on overseas processing, Shinkei's integrated approach aims to reshape the landscape of fish harvesting and processing. While there are obstacles ahead, the potential for Shinkei to emerge as a leader in this niche market is promising, as it strives to create a more humane and efficient seafood supply chain.