In a significant milestone for the food tech industry, BetterBrand, a company known for creating "The Better Bagel," has closed on $6 million of Series A capital at a pre-money valuation of $170 million. This achievement puts founder Aimee Yang among just 150 solo female founders to raise a Series A over $5 million from institutional investors and to achieve that valuation.
A Combination of Innovation and Market Potential
The valuation reflects a combination of the company’s growth, product differentiation, innovative technology, and large-scale market potential. As Yang noted in an email to TechCrunch, "There is a tremendous $10-plus trillion market that is largely untapped, for us to be able to dominate."
Founding Story and Market Performance
BetterBrand was founded in 2021 with the goal of creating better-for-you baked goods using proprietary ‘grain-changing’ technology. This technology combines non-GMO and clean label ingredients to create a line of products that are both healthy and delicious.
The company’s first product, "The Better Bagel," has been a huge success. It features 250% more protein, 90% fewer carbs, and no added sugar. In the past two years, the company has created new bagel flavors, including "The Pretzel" and "The Sesame." Other flavors include "The Classic," "The Everything," "The Cinnamon," and "The Chocolate Chip."
Expansion into New Categories
BetterBrand is not just stopping at bagels. The company is also getting into new categories, with Yang expecting to triple the SKU count by the end of this year with the launch of 16 new products.
Retail Presence and Growth
The products have caught on with consumers. First starting as a direct-to-consumer offering, the products can now be found in more than 1,000 stores in the United States, including Whole Foods, Sprouts, Fresh Market, Gelson’s, and Bristol Farms.
Between 2021 and 2022, the company saw over 800% growth. In late 2022, Yang said BetterBrand "drove more than $1 million in gross sales at Whole Foods Market alone during our first five months on shelves."
Series A Funding and Future Plans
The Series A gives the company nearly $10 million in total venture-backed funding to date. Verso Capital led the new round and was joined by existing investors, including Gaingels Fund, Seven Seven Six, Craft Lane, and a group of individual investors.
The funds will be used to expand into new markets across North America and Europe and on continued innovation and product development poised to begin rolling out in coming months. Yang said, "We’re excited to take our brand to the next level with this funding and continue to innovate and disrupt the food industry."
Investors’ Confidence
The Series A funding is a testament to the company’s innovative approach and market potential. As one of the few solo female founders to achieve this milestone, Yang is an inspiration to many in the industry.
In conclusion, BetterBrand’s success is a reminder that innovation and determination can lead to significant achievements. With its focus on creating healthier food options and expanding into new categories, the company is poised for continued growth and success.
