Emeryville, Calif.-based Ripple Foods, formed by Adam Lowry and Neil Renninger, is working on a milk-like drink made from plants that it says offers more protein than almond- or rice-based milk.
“We’re going after the alternative dairy market,” said Mr. Renninger. “Right now there aren’t any real quality products out there in the alternative dairy space.”
Amid an investor feeding frenzy for food startups, Ripple Foods has picked up $13.6 million in Series A funding, The Wall Street Journal has learned.
There’s a growing arena of companies aiming to make healthier food alternatives as investments in food and beverages companies have soared in the past year. The moves underscore an influx of technology innovation aimed to serve the tastes of health-focused consumers with new food businesses.
Bill Gates in October joined a $108 million Series D investment round in Impossible Foods, a Redwood City, Calif., maker of veggie burgers. That deal came after venture-backed Suja Life LLC, maker of GMO-free organic fruit and vegetable drinks, lapped up $150 million in corporate financing in August.
New food brands are increasingly landing on the shelves of traditional retailers, too. San Francisco-based Hampton Creek Foods Inc., a producer of egg-free mayonnaise, has picked up $117.5 million in venture funding over multiple investments since 2012 and now sells through Wal-Mart Stores Inc.
Investments in food and beverage startups reached an all-time high in 2015. Total investments in U.S.-based startups in the industry sector hit $542.4 million through the third quarter. That is more invested in the sector than any year since Dow Jones VentureSource began tracking the data in 1992.
Ripple Foods has plans to bring its dairy-free milk to a market near you in 2016. The company is lining up distribution and plans to follow up with dairy-free food alternatives.
The investment in Ripple Foods was led by Prelude Ventures and had participation from Khosla Ventures, Blueberry Ventures and Eagle Cliff Partners, an investor in mayo maker Hampton Creek.
The food startup counts individual investors with retail chops, including Gary Hirshberg, co-founder of yogurt company Stonyfield Farms, and Seth Goldman, co-founder of Honest Tea.
“You’ll see us in the stores for sure,” said Mr. Renninger.
Source: WSJ
