Seed Health, the Venice-based biosciences startup known for its popular Goop-approved daily probiotic, closed a $40 million Series A round Wednesday that it hopes to use to ramp up clinical research and launch new products later this year.
The direct-to-consumer company focused on gut health has watched sales multiply by 20 times over the past two years for its probiotic supplement that it bills as a way to "support systemic health."
A month's supply of the Daily Synbiotic retails for $49.99. It's only sold online for now, but co-founder and co-CEO Ara Katz said the company is eyeing retailers outside of the U.S. in a push for "global distribution."
The round was led by The Craftory, a firm focused on consumer packaged goods, along with ARTIS Ventures and GISEV. Previous investors including Founders Fund and 8VS also participated.
A month's supply of the Daily Synbiotic retails for $49.99.
The company will use the funding boost for research and clinical trials and to build out its roster of academics and experts that are part of the company's "scientific board." Like other dietary supplements, Seed's product was not reviewed by the U.S. Food and Drug Association before going to market.
"The funding is really to launch new categories," said Katz, who co-founded Seed in 2016 with co-CEO Raja Dhir. The pair also co-founded LUCA Biologics, a Cambridge, Massachusetts-based biotech company.
"So much of our work and the products we're developing go beyond the gut," she said.
The executive wouldn't disclose details about the products in development, but she said they're related to skin care and oral hygiene.
In February, the company announced it acquired Auggi Technologies Inc., a New York-based artificial intelligence company focused on tracking and analyzing digestive health.Before summer of 2021, Seed will launch a beta version of its consumer-focused digital product based on a stool database powered by Auggi's technology, which lets patients photograph their stool and document symptoms through an app.
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