The Better Meat Co Secures $31 Million to Scale Mycoprotein Production

Sacramento-based startup The Better Meat Co (BMC) has successfully closed an oversubscribed Series A funding round, raising $31 million. This pivotal capital will allow the company to increase its production of Rhiza mycoprotein to a commercial scale, with plans to offer prices lower than those of U.S. commodity ground beef by 2026.

Funding Details

The funding round was co-led by Future Ventures and Resilience Reserve, with participation from notable investors such as Glenn Hickman, CEO of Hickman’s Family Farms, along with Epic Ventures and Sigmas Group.

This financial infusion will enable BMC to ramp up its production capacity from 9,000 liters to an impressive 90,000 liters. “We’ve executed five signed Letters of Intent (LOIs) for future orders from some of the biggest meat companies globally,” stated Paul Shapiro, co-founder and CEO of BMC, in an interview with AgFunderNews.

Challenges in the Alternative Protein Sector

Shapiro addressed the broader challenges faced within the alternative protein sector in a memo to former team members. He noted that many startups have experienced layoffs, bankruptcies, and shutdowns. “Building a startup in our sector can feel similar to playing ‘Squid Game’—the odds of survival are slim,” he remarked.

Despite the turmoil, BMC has managed to maintain stability. “We’ve never conducted layoffs, and we’ve engaged in multiple paid collaborations with industry partners to sustain us during tough times,” Shapiro emphasized.

Rhiza Mycoprotein: Innovation in Alternative Proteins

Rhiza mycoprotein, a non-GMO alternative, is made from the Neurospora fungi species. It offers a fibrous texture that does not require extensive processing, positioning it as a more efficient solution compared to traditional plant-based meats. Shapiro contrasts Rhiza with Quorn, stating that Rhiza provides a “much meatier” experience.

Advantages of Rhiza Mycoprotein

BMC claims that its mycoprotein solution enhances yields, contains less saturated fat, and is richer in fiber. Rhiza’s fermentation process allows it to be produced quickly and cost-effectively, a significant advantage as meat prices continue to rise.

Shapiro elaborated on Rhiza’s versatility, stating, “Our partners want to incorporate it into various products, from burgers to crab cakes. Furthermore, we’ve developed it into a flour that can replace eggs in baking, enhancing nutritional content in everyday food items.”

Regulatory Approvals and Future Prospects

BMC has received regulatory approval in Singapore, a positive sign for its global expansion plans. Additionally, it has attained a no-questions letter from the FDA regarding its GRAS (Generally Recognized as Safe) status.

A Vote of Confidence from Investors

Steve Jurvetson of Future Ventures expressed strong confidence in BMC’s potential, stating, “Given the variety of approaches to alternative protein, I believe we’ve found a winner here.” He highlights the rapid production capabilities of BMC, noting that it can produce a final product in less than 17 hours, an impressive feat unmatched by plant or animal sources.

BMC’s latest funding validates its product and strategies, setting the stage for a promising future in the alternative protein market.