LOS ANGELES — Food technology startup BetterBrand has closed a $6 million Series A funding round at a pre-money valuation of $170 million. The company has raised nearly $10 million since its founding in 2021.
Dubbed “the Beyond Meat of carbs,” BetterBrand developed proprietary technology to produce the Better Bagel, which has the net carbohydrate equivalent of two banana slices, the protein content of four eggs and the sugar content of one stalk of celery, according to the company. The product is formulated with modified wheat starch, wheat protein isolates, potato starch, prebiotic inulin fiber, extra virgin olive oil, yeast, sea salt and enzymes. Offerings include classic, everything, cinnamon, chocolate chip, pretzel and sesame. The Better Bagel is sold online and in more than 1,500 stores nationwide, including Whole Foods Market, Sprouts Farmers Market, Fresh Market, Gelson’s, Bristol Farms, Giant, Harmon's, Lassen's, Plum Market, Wild by Nature, Foxtrot Market and others.
BetterBrand is set to unveil more than a dozen new items in the coming months and will begin expanding to new markets across North America and Europe. The company posted 800% year-over-year growth between 2021 and 2022 and said it is on track to deliver the same growth from 2022 to 2023. During its first five months on shelves at Whole Foods Market stores, BetterBrand grossed more than $1 million in sales.
“We are thrilled about this next chapter for BetterBrand to support our rapid global expansion and continued innovation,” said Aimee C. Yang, founder and chief executive officer of BetterBrand. “This is yet another example of how our mission — proving that the impossible is possible — is demonstrated through practice, and touches not only our product innovation but the massive potential of Better’s power and scale.”
The funding round was led by VERSO Capital with participation from Gaingels Fund, Alexis Ohanian’s Seven Seven Six, Craft Lane, Kyle Vogt, Chris Hollod, and Jeff and Glenne Azoff. High-profile backers betting on BetterBrand also include Sean Thomas, grandson of Wendy’s founder Dave Thomas, and actors Patrick Schwarzenegger and Emmy Rossum.“Aimee's unique combination of determination, vision and ability to innovate sets her apart as a founder,” said Lorenzo Thione, managing director of Gaingels Fund. “At Gaingels, we are thoroughly convinced that under her leadership, BetterBrand is poised to redefine our very relationship with carbohydrates, by combining health and taste in one innovative package. BetterBrand’s vision is not just about a product; it’s about a revolution in how we perceive and consume starches, worldwide. We’re excited to support Aimee’s journey in transforming this giant market and look forward to the indelible impact BetterBrand will make.”