Chile-based startup leverages genetically modified insects to reduce animal disease costs

ByBug is developing genetically modified black soldier fly larvae as a biomanufacturing platform for insect-derived proteins that can be blended directly into aquaculture and poultry feed as preventive disease additives — targeting a global animal protein loss the company values at $358 billion annually.

Founded in 2021 and based in Coquimbo, ByBug is building its platform around black soldier fly larvae, using them as production hosts for proteins designed to protect livestock against specific pathogens before outbreaks take hold.

The commercial focus sits in aquaculture and aviculture, with development targets including white spot syndrome virus, Salmonella, Vibrio and avian influenza. The delivery model is the differentiator: rather than requiring vaccination or therapeutic intervention, the proteins are incorporated into existing feed, removing handling costs and allowing continuous prophylactic exposure across a production cycle.

The scale of the problem underpins the investment case. ByBug estimates that infectious disease destroys approximately 20% of global animal protein output — roughly $358 billion in losses, or enough food to feed a billion people. That framing has attracted backing from GridX, Südlich Capital, the George Kaiser Family Foundation and Tim Draper.

The company reports its technology has reached technology readiness level 6 to 7, with three patents filed and five proteins developed. It is now preparing a production facility with capacity for 1,200 tonnes, requiring approximately $4 million in capital and targeted for 2027 — the transition point from laboratory validation to commercial supply.

A secondary revenue stream is planned around converting agro-food by-products into fertiliser, reinforcing the circular economics of the black soldier fly platform, which already has established commercial precedent in the feed ingredient sector.

For producers facing tightening antimicrobial restrictions, feed-delivered preventive biologics represent an attractive proposition — provided ByBug can demonstrate efficacy at commercial scale and navigate the regulatory pathway for genetically modified insect-derived products.