More than two years after appearing on “Shark Tank,” a vegan dog food startup has secured even more capital from billionaire Mark Cuban – and that’s good news for Durham.
That’s because Wild Earth, which just added $23 million to its coffers, has moved its headquarters from California's Bay Area to Durham’s American Underground, lured to the region by its lower-cost of doing business.
Founder and CEO Ryan Bethencourt said the pandemic is a major driver behind the company's move from California. But the cost profile was the real differentiator. He estimates the firm has been able to cut its costs in half just by moving out of California.
Already, about half of its team is in Durham – about 15 people. And it could soon increase its investment in the state. Right now, manufacturing happens in the Midwest. But the company is in talks with the North Carolina State Food Innovation Lab in Kannapolis “about doing more here,” Bethencourt said.
He said the combined tech-biotech mix of the local talent pool has already been a big boost as the firm continues to build out its team.
“It’s just harder to recruit in the Bay Area,” he said. “And we just found the whole ecosystem in North Carolina so much more welcoming.”
And he’s not the only one.
Cuban, the famed entrepreneur and owner of the NBA's Dallas Mavericks, and whose retorts on “Shark Tank” have made him one of the show’s most high-profile figures, has been “one of the biggest proponents for us to expand outside of California,” Bethencourt said.
“Mark was very supportive of our move to set up our HQ here,” he said.
Cuban was one of several investors contributing to the latest round. Another famous name, Paul Wesley – the actor of “Vampire Diaries” fame – also funneled in capital. Wesley, who uses the product, actually reached out to the firm via Instagram asking to be involved, Bethencourt said.
Other contributors to the round were At One Ventures, Veginvest, Big Idea Ventures, Bitburger Ventures and Gaingels.
In addition to hiring, the firm plans to build upon its current plant-based and cell-based meat products to launch all-new cell-based meat cat and dog foods for 2022.
Bethencourt first brought the firm to “Shark Tank” in Season 10, asking for $550,000 for a 5 percent stake. Cuban countered with $550,000 for 10 percent, and has been actively involved ever since, according to Bethencourt.
Bethencourt and his wife, Mariliis Holm, are also behind Sustainable Food Ventures, a micro venture capital fund designed to invest in food startups.
