Protein Startups Keep Raising Big Money as Fake Meat Fades

Medici Brands, the parent of David Protein snack bars, raised $250 million in a September Series B — the largest of a few dozen protein-focused startup rounds Crunchbase identified over the past year. The deal shows where venture money has moved: away from meat substitutes and toward stuffing more protein into ordinary packaged foods.

The pivot follows a bruising stretch for the sector's earlier stars. Investors poured billions into lab-grown meat several years ago without producing a single success story, Crunchbase reports. Beyond Meat, now public, and Impossible Foods have watched their valuations wither, and other plant-based meat startups have shut down entirely.

The shift is visible on supermarket shelves. Startups and established brands alike now tout added protein in noodles, pancakes, cereals, energy bars and popcorn. In startup circles, protein investment looks tiny next to the billions flowing to AI — but deal flow remains robust.

Where is the money actually going?

Crunchbase sorted recent financings into four themes: packaged foods, drinks, ingredients and processes, and animal feed. Snacks and packaged foods secured hundreds of millions of dollars in the past year, making them the largest fundraisers among protein startups.

Medici Brands dominates that bucket. David Protein bars carry enough protein to rival cod, per the company, and the brand has expanded into ice cream and milkshakes. A $250 million Series B buys a lot of expansion — though it also raises the bar for what must eventually be sold.

Wilde Brands, which makes crackers from chicken breasts, pulled in $40 million last month. Early-stage startup Frozen One has raised over $8 million for a line of high-protein ice creams now sold at Target.

What about protein in liquid form?

Ripple Foods, maker of a pea-protein vegan milk, is the highest historical funding recipient in the drinks cohort. The company has raised more than $300 million over its 12-year history — roughly $25 million a year — yet has still not officially reached unicorn valuation. Longevity, in this case, has not translated into a $1 billion mark.

Clear protein drinks are also gaining ground. Multiple startups are betting on them, including protein soda brand Juuz and sports-drink purveyor Protein2o.

Are ingredients and fermentation still fundable?

Several funded startups are focused on novel protein-rich ingredients rather than branded retail products, often using precision fermentation to deliver them.

The Every Co., which makes animal-free egg white proteins through fermentation, leads the group. It has raised nearly $300 million over the past 10 years, including a $55 million round a year ago. Early-stage activity continues too: Edonia, which makes a high-protein cooking ingredient from spirulina, has secured backing in recent quarters.

Ingredient makers face a different test than consumer brands — their customers are manufacturers, not fickle supermarket shoppers. Whether that insulation holds remains unproven.

Why are investors looking at bugs and pet food?

A cluster of protein startups is targeting pets and livestock — an audience, as Crunchbase notes, not overwhelmed by supermarket options. Two of the five recently funded companies in this group are bug-focused.

InnovaFeed has raised over $500 million to raise insects for livestock feed, pet food and aquaculture. NextProtein is using fly larvae for feedstock. Meatly secured a Series A this spring to build what it says will be Europe's largest cultivated meat facility, with plans to partner with pet food brands and launch its own branded lineup once production scales.

Notably, cultivated meat survives here — just aimed at animals rather than humans, where the technology's earlier failures occurred.

Protein, not meat

The broad trend across most financings, per Crunchbase: startups are no longer trying to convince people that vegetables are meat. They treat protein as an in-demand macronutrient that can be concentrated and stuffed into a bewildering variety of flavors and form factors.

The products may not taste as good as their sugary, high-fat, carb-laden alternatives. But as the pitch goes, at least they've got protein — and for now, that is enough to keep venture checks flowing.