Exclusive: Chunk Foods raises $7.5M seed extension to fuel growth
Chunk Foods, a plant-based proteins maker, has raised $7.5 million in additional seed funding to bring new products to market, CEO Amos Golan tells Axios exclusively.
Details: The new funding is led by Cheyenne Ventures, bringing its seed-round sum to $22 million.
- The company has raised over $24 million in total funding from Fall Line Capital, The MIT E14 fund, Key1 Capital and Robert Downey, Jr.-backed FootPrint Coalition.
- The fresh funds should give the company a runway of more than three years in terms of financing, but it hopes to dial that up, likely by the end of the year, as it speeds up growth in the U.S. and beyond, Golan says.
By the numbers: Chunk's revenue run rate is going to be in the millions by year's end, he says. Next year, it expects to exceed $10 million.
Meanwhile, the company also inked an investment and collaboration agreement with Sigma Alimentos' Better Balance brands to develop a range of plant-based, whole-cut meats.
- The co-branded Chunk products will be available in the food-service and retail channels in Mexico, the company's first foray into Latin America.
How it works: Chunk has developed a plant-based protein that emulates the texture, color and taste of its meaty counterpart through fermentation and food-grade microorganisms.
- It produces muscle-cut products, like steaks, roasts and kebabs, with less fat and calories but about the same amount of protein.
- The goal is to create a "one-to-one replacement" with meat that can be used in any cuisine and as another dish, Golan says.
What's next: Chunk —which currently serves fine dining restaurants, and fast and casual restaurants — has plans to expand into retail as well, Golan says.