Simulate, manufacturer of plant-based chicken nuggets, raised $50 million in a series B funding round led by a venture capitalist firm run by Reddit co-founder Alexis Ohanian.
The money will be used to triple the size of Simulate’s internal team, develop new products and technologies, scale up manufacturing capabilities and boost retail and foodservice presence as the start-up continues expanding into international markets.
“Historically, our food system has rejected the use of technology, resulting in a system that is highly inefficient and primitive,” said Ben Pasternak, co-founder and CEO of New York-based Simulate. “This new funding will be used to create and protect the intersection of technology and nutrition.”
Plant-based proteins went mainstream in 2019, however the majority of meat alternatives available on the market are designed to taste like beef or pork. This is because it is much more difficult to mimic the taste and texture of poultry.
Simulate’s plant-based chicken nuggets, Nuggs, first launched in the summer of 2019. The meat alternative features wheat and soy protein and contains 13 grams of protein and 210 calories per serving. Simulate is best known for its controversial marketing statements, which include “Tesla of Chicken” and “Kill You Slower.”
Nuggs are available at more than 5,000 retail locations, including Walmart, Sam’s Club, Target and Whole Foods Market, with plans to expand to another 10,000 retail locations by the end of 2021.
Focus on nutrition technology investments
Seven Seven Six, a software-enabled venture capitalist firm that was founded by internet entrepreneur and Reddit co-founder Alexis Ohanian, led the investment round. This is the first food-related start-up that Seven Seven Six has invested in.
“Ben, Sam and the entire team’s commitment to rapid product iteration and building products that can infinitely scale is why we’re backing Simulate,” Ohanian told Progressive Grocer. “The best technology companies that I’ve invested in over the past decade have operated with similar principles, and we’re excited to see Simulate grow into one of the highest-impact nutrition companies on the planet.”
Ohanian will also join the board of directors for Simulate.
Chris and Crystal Sacca, NOMO Ventures, McCain Foods, Imaginary Ventures and Day One Ventures also participated in the funding round.
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