USA- Food technology start up Tender Food Inc., has successfully raised US$11 million in first round of funding, with Rhapsody Venture Partners, Lowercarbon Capital, Cladridge Partners, Nor’easter Ventures and Safar Partners leading the funding round.
The company announced it will use the funds to continue to develop new and innovative way of producing and consuming plant-based meat through scaling up capacity of its production facility and commercializing its products at scale, which would lower production costs and guarantee higher margins.
The funding round follows growing market confidence over how the start-up makes its plant-based meat products.
According to the company’s website, Tender Foods’ patented technology spins plant protein fibers into cotton-like threads to create realistic, nutritious and affordable plant-based meat products with simple ingredients in any meat format.
The company lauded the move, reiterating it will serve existing customer concerns and preference in the plant-based meat market.
Christophe Chantre, Tender Foods’ CEO said, “Consumers are largely disappointed with plant-based meat products in the market—they’re too expensive, they don’t taste good, and are mostly limited to burgers and sausages with long, unrecognizable ingredient lists.”
“We need new technologies to address these challenges and drive meaningful adoption in this category, which is crucial for decarbonizing our food system. Our technology allows us to create healthy products that taste great, have the structure and feel of animal meat and are much cheaper to produce.”
The company also announced a new partnership with Clover Food Lab, which will bring Tender Foods’ products to all Clover locations in the US before 2025.
Clover lauded the move, reiterating the partnership will benefit both companies in creating the most innovative, market-responsive products, helping both companies consolidate market share in their respective sectors.
Chris Anderson, Clover’s Senior Vice President said, “We’re a popular vegetarian chain, so, as you can imagine, we try a lot of new plant-based products. Tender’s stood out from the start—it’s innovative, it’s tasty, it’s a great addition to our grain bowls and salads. And most importantly, we’re hearing lots of positive feedback from our customers—90% of whom are meat-eaters!”
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