BetterBrand’s new dough raises firm’s valuation to over $170M

BetterBrand, a foodtech firm identified for creating “The Higher Bagel,” closed on $6 million of Collection A capital at a pre-money valuation of $170 million.

The corporate, citing Crunchbase knowledge, additionally touts that the increase places founder Aimee Yang amongst simply 150 solo feminine founders to boost a Collection A over $5 million from institutional traders and to realize that valuation.

“The valuation displays a mix of our development, product differentiation, progressive expertise and large-scale market potential,” Yang instructed TechCrunch by way of e-mail. “There’s a super $10-plus trillion market that’s largely untapped, for us to have the ability to dominate. With the outcomes we’ve achieved at an unprecedented scale and velocity, our imaginative and prescient to design the way forward for meals is already being actualized — at this level, our largest problem is a race in opposition to the clock. We need to get there as rapidly as doable to construct the model, and ship on client demand.”

Based in 2021, BetterBrand’s proprietary “grain-changing” expertise combines non-GMO and clear label elements to create a line of better-for-you baked items. For instance, the corporate has created the historically carb-heavy bagel into “the web carb equal of two banana slices,” with “The Higher Bagel” that includes 250% extra protein, 90% fewer carbs and no added sugar.

Prior to now two years, the corporate has created new bagel flavors, most just lately launching “The Pretzel” and “The Sesame.” Different flavors embrace  “The Basic,” “The Every thing,” “The Cinnamon,” and “The Chocolate Chip.” BetterBrand can be moving into new classes, and Yang expects to triple the SKU depend by the tip of this yr with the launch of 16 new merchandise.

The merchandise have caught on with shoppers. First beginning as a direct-to-consumer, the merchandise can now be present in over 1,000 shops in the US, together with Entire Meals, Sprouts, Recent Market, Gelson’s and Bristol Farms.

BetterBrand’s “The Higher Bagel” product line. (Picture credit score: BetterBrand)

Between 2021 and 2022, the corporate noticed over 800% development and in late 2022, Yang stated BetterBrand “drove greater than $1 million in product sales at Entire Meals Market alone throughout our first 5 months on cabinets.”

The corporate is on monitor to see an identical enhance between 2022 and 2023, which is why Yang stated it was a very good alternative to go after extra funding.

“Buyers can see our outcomes,” Yang stated. “Our velocities on shelf have organically outperformed our greatest case estimates. Product market match had been confirmed, and the inspiration had been laid out, so it was a very good time to start out including gas to drive extra innovation and distribution.”

The Collection A offers the corporate practically $10 million in whole venture-backed funding to this point. Verso Capital led the brand new spherical and was joined by current traders, together with Gaingels Fund, Seven Seven Six, Craft Lane and a bunch of particular person traders, together with Cruise founder and CEO Kyle Vogt, Chris Hollod and Jeff and Glenne Azoff. Current traders Sean Thomas, of the Wendy’s household, and actors Patrick Schwarzenegger and Emmy Rossum, have been a part of BetterBrand’s earlier fund raises in 2021.

In the meantime, the corporate is concentrated on development, so the funds will likely be used to increase into new markets throughout North America and Europe and on continued innovation and product growth poised to start rolling out in coming months, Yang stated.

Buyers are additionally wanting to see what’s subsequent. Kyle Vogt stated in a written assertion that, “Aimee Yang is an unimaginable entrepreneur and a strong operator. Her firm presents life-changing, clear, purposeful merchandise for individuals who beforehand felt that they had to surrender a few of their favourite meals to suit their dietary wants. It’s an thrilling journey to be part of.”