The company announced Thursday it raised $2.5 million three months after launching. Alexis Ohanian's Seven Seven Six led this round, but other key investors include Soma Capital, VERSO Capital, Cruise founder Kyle Vogt and actor Patrick Schwarzenegger.
Bagels alone are a $1.7 billion market in the U.S. Over 200 million Americans consumed bagels in 2020, according to a recent report from industry analyst IBISWorld.
BetterBrand only has one product (and one flavor) available for purchase, the BetterBagel, which can only be purchased online in packs of four, eight or twelve. Yang said the bagel contains 24g of protein and that its carb content is equivalent to two banana slices.
"The texture and the process is so special and it speaks to so much to innovation that you don't feel the need to put seeds on it or mask the flavor of the taste," Yang said.
She added that the packaging is made from post consumer recycled (PCR) materials and designed to be sustainable.
Yang said she launched Better Brand in Los Angeles, where "there is a huge focus on health."
"We'll get DM's from people saying, this has really changed my life," Yang said. "I never used to be able to eat bagels because I'm diabetic and now I can."
Traditional bagels are made from refined white flour, which can increase the glucose blood levels of people who suffer from diabetes.
Yang said the funds will help accelerate the growth of the team, increase product development, prepare for a large-scale retail distribution, and acquire a second location in the east coast.
The Wharton grad is proud of how organic the growth of the company has been and it's largely due to the excitement consumers have about the product and their mission.
Correction: An earlier version of this post misconstrued the amount of protein contained in BetterBrand's bagels.
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