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NotCo gets its horn following $235M round to expand plant-based food products – TechCrunch

NotCoA food technology company that manufactures plant-based milk and meat substitutes closed another funding round, the $ 235 million Series D round, with a $ 1.5 billion valuation this year.

Tiger Global led the round with new investors such as the DFJ Growth Fund, the Social Impact Foundation and ZOMA Lab. Athlete Lewis Hamilton and Roger Federer. Musician and DJ Questlove. Subsequent investors include Bezos Expedition, Enlightened Hospitality Investments, Future Positive, L Catterton and The Ventures.

This funding round Private investment From Shake Shack founder Daniel Meyer to his company EHI in June. NotCo, which has roots in both Chile and New York, has raised a total of more than $ 350 million, founder and CEO Matias Muchnick told TechCrunch.

Current, Company It has four product lines, NotMilk, NotBurger, NotMeat, NoticeCream and NotMayo, and is sold in five countries: the United States, Brazil, Argentina, Chile and Colombia.

The company is in the midst of a tendency to eat healthier foods, with more consumers questioning how foods are made and creating a demand for alternative proteins. actual, Market for meat, eggs, dairy and seafood products Is projected to reach $ 290 billion by 2035, according to a survey by Boston Consulting Group When Blue Horizon Corporation..

NotCo’s unique artificial intelligence technology, Giuseppe, adapts animal proteins to the ideal alternative among thousands of plant-based ingredients. With a combination of two ingredients that can mimic milk, we are working to decipher the code to understand the molecular ingredients and the properties of foods, but in a more sustainable and witty way, and it is also adopted. Muchnick said deliciousness, which is the biggest barrier to.

“In our theory, there is crazy dynamics among people. 60% of people who already eat plant-based are not happy with the taste, and 30% of milk drinkers have a similar taste. I’m waiting for it to change, if any. “He added. “Our technology is based on AI, so it’s faster than other products in the universe, and we can create not only better products, but also a variety of food systems. There are 300,000 species of plants, but 99% I still don’t know what I can do. “

In addition to this year’s investment stream, the company launched the NotMilk brand in the United States seven months ago and plans to roll it out to 8,000 retail outlets across Whole Foods Market, Sprout and Wegmans by the end of 2021.

Muchnick plans to allocate some of the new funding to establish markets in Mexico and Canada and add market share to the United States and Chile. He expects 50% of his business to come from the United States over the next three years. He also aims to expand into Asia and Europe next year.

NotCo will also invest in technology and R & D with additional products such as chicken and other white meats and seafood. He hopes to do so by doubling the company’s current 100 workforce over the next two years. Muchnick also wants to get more patents in food science. The company already has five patents and is exploring potential intelligence aspects of the business.

NotCo has reached unicorn status, but the real award is brand awareness and subsequent sales growth, and opening the door to quick service restaurant transactions, Muchnick said. NotBurger entered the Burger King restaurant in Chile 11 months ago and now accounts for 5% of the market, he added.

Over the last four years, overall sales have tripled each year. This is what Muchnick said is attractive to Tiger Global. He is just as happy to work with Tiger, especially as the company is preparing to publish in the next few years. He said Tiger’s expertise would make NotCo get there in a more prepared way.

“NotCo has created world-class plant-based foods that are rapidly gaining market share,” Tiger Global partner Scott Shleifer said in writing. “We are excited to partner with Matthias and his team. Continued product innovation and expansion into new regions and food categories will drive high and sustainable growth over the next few years. I’m looking forward to it. “

NotCo gets its horn following $235M round to expand plant-based food products – TechCrunch Source link NotCo gets its horn following $235M round to expand plant-based food products – TechCrunch

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