VCs shift protein startup investments from fake meat to everyday foods

Venture capital investors are still putting money into protein startups, even though early investments in lab-grown and plant-based meat substitutes have largely struggled. While companies like Beyond and Impossible Foods have seen their market values drop, investors are now backing businesses that add protein to standard supermarket items.

Focus moves to snacks, drinks, and ingredients

Instead of trying to make vegetables taste like meat, current startups are concentrating on packing protein into everyday items like snacks, noodles, cereals, and drinks. Recent funding rounds show strong activity in this space. For example, Medici Brands raised a $250 million Series B round for its David Protein snack bars, while Wilde Brands secured $40 million for chicken breast crackers.

Drink makers and ingredient suppliers are also attracting capital. Companies like Ripple Foods produce vegan milk from pea protein, while others create clear protein sodas and sports drinks. In the ingredient sector, businesses use methods like precision fermentation to make animal-free proteins without traditional farming.

Alternative feed and pet food applications

Beyond human food, investors are funding protein startups that target livestock and pets. Some companies raise insects, such as fly larvae, to use as feedstock for animals and aquaculture. Others are developing cultivated meat specifically for pet food brands, showing that investor interest in protein extends far beyond grocery store meat substitutes.