Sacramento-based startup, The Better Meat Co. (BMC), has closed a $31 million Series A funding round. It was led by Future Ventures and Resilience Reserve. Other participants included Hickman’s Family Farms, Epic Ventures, and Sigmas Group. The new capital will help BMC increase the production of its Rhiza mycoprotein.
The company plans to grow from 9,000 liters to 90,000 liters of production capacity. This tenfold increase aims to support the company’s goal of selling meat alternatives at prices lower than U.S. commodity ground beef by 2026.
BMC has signed five Letters of Intent (LOIs) with major meat companies. These agreements show growing commercial interest. The company’s total funding to date is $43.1 million, including equity and convertible notes.
CEO Paul Shapiro stated that the sector faces many challenges. He noted that many alternative protein startups have shut down or laid off staff recently. Despite this, BMC has maintained its workforce and avoided layoffs. Shapiro credits careful management and industry partnerships for stability.
The company’s key product, Rhiza mycoprotein, is derived from fungi. It is shipped at room temperature and hydrates quickly. BMC claims its product offers a more meat-like experience than plant-based options. It is non-GMO and made from Neurospora fungi.
Rhiza enhances yields, adds fiber, and reduces calories, saturated fats, and sodium in meat products. It is used in burgers, nuggets, and seafood analogs. The product also replaces eggs and improves protein content in baked goods and tortillas.
BMC has received regulatory approval in Singapore and from the U.S. FDA and USDA. The company emphasizes that its approach is scalable and cost-effective. Industry experts see potential for Rhiza to transform the alternative protein market.
