Most startup entrepreneurs would view $1 million a month in revenue as a happy milestone for a company. For Ben McKean, nearing the million dollar mark meant it was finally time to recognize the fear that had been gnawing at him over the last year. His healthy and convenient subscription food business, Hungryroot, had been growing fast since it launched in 2015. Customers were literally hungry for more as they filled the company's Facebook page with five-star reviews and product suggestions. But McKean, the CEO and founder of the company, started to realize that its own manufacturing capabilities were holding growth back. As the company neared the million-dollar mark in early 2017, McKean made the choice to stop taking orders and shut down its own food manufacturing facility. Hungryroot lost all of its revenue overnight.
Hungryroot Raises $7.7 Million to Make Sinful Food Healthier
Ben McKean thinks comfort food can be guilt-free, and his company just raised another $7.7 million to prove it. McKean founded Hungryroot in 2015, sensing an opportunity to use plant-based ingredients to make healthy, easy-to-prepare versions of “craveable” foods. In two years, he has raised a total of $13.5 million in venture capital from Lightspeed Venture Partners, Lerer Hippeau Ventures, and Crosslink Capital, among others. McKean doesn’t mince words -- he is aggressively going after Big Food. The top 25 U.S. food and beverage companies have lost $18 billion in market share in the last five years.
Hungryroot Raises $3.7 Million for Healthy Eats
Brownies made of black beans and cookies made of chickpeas are amongst the unusual recipes found on Hungryroot. Launched last year, the New York-based meal kit startup focuses on vegetable-based natural foods that can be prepared in under seven minutes. After demonstrating “rapid growth,” Hungryroot has raised an additional $3.7 million in financing from Lightspeed Venture Partners, Lerer Hippeau Ventures, Crosslink Capital and others, bringing its total funding to $6 million.
HungryRoot Sprouts $3.7 Million for Veggie-Based Pasta
Pasta without the guilt? Venture capitalists say, “Yes, please.” HungryRoot Inc., a startup peddling pasta made from vegetables and other healthy stand-ins for a foodie’s indulgences, has raised $3.7 million in a Series A round led by Lightspeed Venture Partners. Its products, currently sold online, will appear in Whole Foods WFM +3.16% grocery stores beginning this summer, said co-founder and Chief Executive Ben McKean.