VCs Are Still Chasing Protein, Even As Fake Meat Falls Out Of Favor

Macronutrients rarely experience popularity contests, yet if they did, protein would undoubtedly claim the crown for this era.

From sodas and snack bars to pasta, food and beverage producers now routinely highlight protein content whenever possible. Even as consumers cut carbs and monitor fat intake, enthusiasm for protein remains strong.

Startups and their financial backers have eagerly embraced this momentum. Over the past decade, investors have committed billions of dollars to emerging companies offering more affordable, flavorful, and sustainable methods for hitting daily protein requirements.

Regrettably, many early investments have underperformed. For example, massive amounts of capital directed toward lab-grown meat over the past several years have not yet yielded a success story. Former high-flying plant-based meat enterprises—such as Beyond (now publicly traded) and Impossible Foods—have experienced significant drops in valuation, while others have closed their doors.

Consequently, recent venture investments have shifted away from meat substitutes and toward adding extra protein into standard packaged foods and drinks. This trend is clearly visible on grocery store shelves, where both new startups and established labels continuously promote the added protein found in noodles, pancakes, breakfast cereals, energy bars, and popcorn.

Deal flow looks robust

Within the startup ecosystem, protein-focused funding appears modest compared to the billions directed into artificial intelligence. Even so, deal flow stays quite healthy, with Crunchbase tracking several dozen protein-centric startups that secured funding over the past year. Furthermore, some of these financing rounds are quite large, highlighted by a $250 million Series B round in September for Medici Brands, the creator of David Protein snack bars.

To demonstrate this activity, we utilized Crunchbase information to compile sample groups of recently funded companies centered on protein across multiple categories, including packaged foods, beverages, ingredients and processes, and animal feed.

Protein snacks and packaged foods

Snacks and packaged foods emerge as the top fundraisers among protein startups, pulling in hundreds of millions of dollars over the last year.

To provide a view of active fundraisers, we assembled a list of seven recently financed brands reaching retail store shelves.

The vast majority of recent capital went to the aforementioned parent company of David Protein. Alongside producing sweet-flavored bars boasting protein levels that rival cod, the brand has branched out into ice cream and milkshakes.

Wilde Brands, a producer of crackers made from chicken breasts, has likewise gained investor traction by securing $40 million last month. Among early-stage ventures, Frozen One has experienced a fast start, generating over $8 million for a high-protein ice cream line now available at Target.

Protein drinks

Startups and investors are also targeting consumers seeking high-protein diets in liquid formats. Below are six recently financed examples for illustration.

Ripple Foods, a producer of vegan milk derived from pea protein, holds the record for highest historical funding, having collected over $300 million across its 12-year history without officially reaching unicorn status.

Clear protein beverages are also gaining traction, with various startups entering the space, including protein soda brand Juuz and sports drink maker Protein2o.

Precision fermentation and plant protein ingredients

A significant number of funded startups concentrate on innovative, protein-dense ingredients instead of direct-to-consumer retail lines. Many of these companies rely on precision fermentation to achieve their goals.

Seven examples are outlined below.

The Every Co., which produces animal-free egg white proteins via fermentation, stands as the largest funding recipient and one of the older entities on the list. It has secured nearly $300 million over the past decade, which includes a $55 million round raised a year ago.

The early stage also shows activity from ventures like Edonia, which manufactures a high-protein cooking ingredient derived from spirulina.

Animal feed and pet food

Several funded protein startups target livestock and pets—markets that avoid the heavy saturation found in supermarket aisles.

Five companies raising capital in recent quarters have been grouped to illustrate this trend.

Notably, two of them—InnovaFeed and nextProtein—focus on insects. InnovaFeed has raised more than $500 million to breed insects for pet food, aquaculture, and livestock feed, while nextProtein utilizes fly larvae for feedstock.

Other businesses target the pet sector. Meatly, for instance, closed a Series A round this spring to construct what it projects will be Europe’s largest cultivated meat facility. The company intends to collaborate with pet food brands while launching its own branded product line once production capacity scales.

Broad focus: Protein, not meat

Summarizing the broader trend across these protein investments, startups are generally not trying to convince consumers that vegetables equal meat. Instead, they treat protein as a sought-after macronutrient that can be concentrated and incorporated into a wide variety of flavors and form factors.

While these products may not always taste as good as high-fat, sugary, and carb-heavy alternatives, they deliver the requested protein.

Related Crunchbase lists:

• Animal Feed And Pet Food Protein Startups
• Startups Focused On Plant Protein Ingredients And Technologies
• Protein Beverage Startups

?Frequently Asked Questions

01Why are investors shifting focus away from fake meat?

Many early investments in lab-grown and plant-based meat startups experienced poor financial performance, declining valuations, or business closures, leading investors to pursue alternative ways to deliver protein.

02What categories are attracting the most protein startup funding?

Snacks and packaged foods have secured the largest shares of funding, raising hundreds of millions of dollars over the past year for products like protein bars, chips, and ice cream.

03Are alternative protein ingredients like insect feed gaining traction?

Yes, companies like InnovaFeed and nextProtein have raised substantial capital to utilize insects and fly larvae for animal feed, pet food, and aquaculture.

Illustration: Dom Guzman

Financial Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Venture capital investments in startups carry a high degree of risk, including the potential loss of principal. Always consult with a qualified financial advisor before making any investment decisions.