Daring Foods wants to do for plant-based chicken what Beyond Meat and the Impossible Burger did for faux meat: Take it mainstream and, in the process, convert a few carnivores.
The Los Angeles-based company just raised $8 million and is about to launch its newest product: Plant-based protein "chicken" tenders.
Originally conceived in the United Kingdom in 2018, the founders moved to New York after U.S. investors showed interest at the end of last year.
Soon after, co-founders Ross Mackay (CEO ) and Eliott Kessas (COO) decided to move full time to Los Angeles, joining El Segundo-based Beyond Meat and other plant-based startups that have found a receptive market in the region's health-conscious residents.
"L.A. is really the capital of health and wellness. And I was very inspired by a lot of CPG (consumer packaged goods) brands here," said Mackay, who moved in March.
Los Angeles has long been a hub of food experimentation, as restaurants and bars embraced vegan options long before chain restaurants like Burger King and Starbucks added faux meat to the menu.
It was here that Mackay and Kessas found a natural fit for their lifestyle.
"We've been friends for more than 10 years and really shared a passion for health, nutrition, but also plant- based diet," Mackay said. "The business was really built for a real need: We were consuming a lot of other plant based meats on the market and thought that there was a gap... particularly in the chicken forum."
Analysts are projecting the plant-based protein and meat alternative market to grow to $85 billion by 2030, and Daring is looking to compete with their plant-based chicken. Beyond and other imitation meat makers have similar products, but none have broken through.
Late last year, Darling struck a distribution deal with Arizona-based Sprouts Farmers Market. Darling's original, cajun, and lemon-and-herb flavored pieces are now sold in Sprouts, Gelson's, Bristol Farms and Fresh Thyme, but the company still offers them to consumers directly through their website.
The fresh round of funding will help Daring expand their 12-person team as they look to establish outposts on the East and West coasts.
Meanwhile the company will boost its marketing efforts as it readies to sell their breaded chicken-like products in stores on October 1st.
The series A funding is led by Maveron with additional support from GoodFriends, Stray Dog Capital, Palm Tree Crew Investments and private investors Mike Smith and Brian Swette.
Daring hopes to use their products to help educate people on the health benefits of consuming plant-based products and promote alternatives to chicken farming, which has been criticized as cruel.
With the pandemic, they see an opening.
"Without doubt, COVID as a whole has placed an emphasis on the importance of health," said Mackay. "And if you double down on that, what we put in our body in particular animal protein has been questioned. So consumers have looked for alternatives to meat. And of course, steering being available both online and in stores, and groceries, it's actually improved our sell through rate in retail."
- Daring Foods Aims to Take Faux Chicken Mainstream with $8M Raise ›
- Longeve Brands Faux Ground Beef Closes $5M Seed Round - dot.LA ›
- Daring Foods Raises $40 Million to Produce Faux Chicken - dot.LA ›
- Daring Foods Raises $65 Million In New Funding - dot.LA ›
- Beyond Meat Unveils Plant-based Meat Options at KFC - dot.LA ›
Subscribe to our newsletter to catch every headline.
Similar programs are common in the startup world and in the creator economy. For example, social media companies can use accelerator programs not only to support rising stars but to lure those creators—and their audiences—to the company’s platforms. Genies believes avatars will be a crucial part of the internet’s future and is similarly using its program to encourage creators to launch brands using Genies’ platform.
“I think us being able to work hands on with this next era—this next generation of designers and entrepreneurs—not only gets us a chance to understand how people want to use our platform and tools, but also allows us to nurture those types of creators that are going to exist and continue to build within our ecosystem,” said Allison Sturges, Genies’ head of strategic partnerships.
DIY Collective’s initial cohort will include roughly 15 people, Sturges said. They will spend three weeks at the Genies headquarters, participating in workshops and hearing from CEOs, fashion designers, tattoo artists and speakers from other industries, she added. Genies will provide creatives with funding to build brands and audiences, though Sturges declined to share how much. By the end of the program, participants will be able to sell digital goods through the company’s NFT marketplace, The Warehouse. There, people can buy, sell and trade avatar creations, such as wearable items.
Genies will accept applications for the debut program until Aug. 1. It will kick off on Aug. 8, and previous experience in digital fashion and 3D art development is not required.
Sturges said that the program will teach people “about the tools and capabilities that they will have” through Genies’ platform, as well as “how to think about building their own avatar ecosystem brands and even their own audience.”
Image courtesy of Genies
Founded in 2017, Genies established itself by making avatars for celebrities from Rihanna to Russell Westbrook, who have used the online lookalikes for social media and sponsorship opportunities. The 150-person company, which has raised at least $250 million to date, has secured partnerships with Universal Music Group and Warner Music Group to make avatars for each music label’s entire roster of artists. Former Disney boss Bob Iger joined the company’s board in March.
The company wants to extend avatars to everyone else. Avatars—digital figures that represent an individual—may be the way people interact with each other in the 3D virtual worlds of the metaverse, the much-hyped iteration of the internet where users may one day work, shop and socialize. A company spokesperson previously told dot.LA that Genies has been beta testing avatar creator tools with invite-only users and gives creators “full ownership and commercialization rights” over their creations collecting a 5% transaction fee each time an avatar NFT is sold.
“It's an opportunity for people to build their most expressive and authentic self within this digital era,” Sturges said of avatars.
The company’s call for creators could be a sign that Genies is close to rolling out the Warehouse and its tools publicly. Asked what these avatar tools might look like, the startup went somewhat quiet again.
Allison Sturges said, “I think that's probably something that I'll hold off on sharing. We will be rolling some of this out soon.”
- Bob Iger, Former Disney CEO, Joins Avatar Startup Genies - dot.LA ›
- Genies Raises $150 Million To Make Avatars For The Metaverse ... ›
