Plant-based food products are all the rage these days, as advances in science and processing collide with growing appetites for meat-like alternatives.
Richmond-based Nutraiti is near the forefront of the industry, although its approach has been to provide plant-based food ingredients to other food manufacturers. It uses protein, flours, oils, beans, peas, lentils and chickpeas to create alternatives to eggs and are the foundation for some plant-based meats, cheeses and snacks like pretzels, pizza and bread.
And it has caught a lot of interest from investors.
The startup on Thursday announced it has closed on a $12.7M Series C funding round led by Manna Tree, a Colorado-based investment firm that focuses on healthy foods. Also in on the funding round were prior investors Open Prairie, which backed the company through a growth-stage private equity fund licensed by the USDA as a Rural Business Investment Company.
The new funding was foreshadowed in August when the company, which has offices in Henrico, reported it had raised $2.9 million of the round. Prior to that, it raised a $9 million round in 2017, with backing from PowerPlant Ventures and Tate & Lyle Ventures.
Former Altria executive Richard Kelly and Michael Spinelli, previously with Ben & Jerry’s and Sabra, founded Nutriati in 2013. Late last year, the 5-year-old startup named Michael Todd as CEO to replace Kelly, who recently transitioned to an advisory role.
The new funding is also big news for the lead investor, Manna Tree. This represents the firm's third investment after being founded in 2018 by CEO Gabrielle Rubenstein, who is the daughter of private equity billionaire David Rubenstein; CIO Ross Iverson; and COO Brent Drever.
Meanwhile, Open Prairie, based in Effingham, Ill., has operated three funds. Its $40 million Prairie Ventures I launched in 1999. Its second fund gathered $30 million for agriculture and medical investments. And its $81 million Rural Opportunities Fund, which backed Nutraiti, is making debt and equity investments of $2 million to $8 million in companies across the U.S.
"Nutriati is at the forefront of the plant-based trends being adopted by many of today's consumers," Open Prairie partner and Nutriati board member Tom Doxsie said in a news release. "Through proprietary processing and innovative product development, Nutriati is providing superior solutions to food and beverage companies for plant-based protein and non-dairy applications."
