Israeli food tech startup Zero Egg, the developer of a vegan substitute for eggs raised $5 million in Series A funding led by US growth equity fund Powerplant Ventures, the company announced this month.
Existing investors Unovis Asset Management-New Crop Capital and Strauss Group-The Kitchen Hub, a tech incubator in which Zero Egg took part, also participated in the investment round. The incubator is also a seed investor in food and beverage startups co-run with the Strauss Group, one of Israel’s biggest food product manufacturers company.
Founded in 2018, Zero Egg developed an egg substitute based on a blend of plant proteins, including soy, potato, pea, and chickpea. The company says the products look and behave like eggs without the cholesterol and the calories – just 15 calories per egg substitutes compared to the average 68 calories of an actual egg.
Zero Egg offers two products: EGG Basics, to rival ordinary eggs in traditional egg entrees and breakfast dishes, and BAKE Basics, developed for baking purposes.
The funding announcement comes a month after the company made its US debut with food manufacturers. Zero Egg said it will use the funding to grow the brand in the US and support new product launches in the coming year.
“Zero Egg aims to make plant-based foods the norm and empower the era of sustainable foods,” said Liron Nimrodi, Zero Egg CEO and co-founder. “Our goal is to meet growing consumer demand for an egg replacement that is effective, nutritious, versatile, and kind to animals and to the planet. We are elated to join Powerplant Ventures’ portfolio of brands. We can’t imagine a better partner to help us grow the brand and transform the industry.”
Demand for plant-based food is on the rise with plant-based meat, egg, and dairy products further making their way into the market, the company says. According to a retail data report put together by SPINS, a wellness-focused tech company, sales of plant-based foods that directly replace animal products have grown 29 percent in the past two years to $5 billion.
“The egg category is massive and the potential to disrupt it with an accessible plant-based solution is fairly untapped in the food industry. As investors, we are looking forward to continuing to support the expansion of Zero Egg in the US market,” said Dan Y. Altschuler Malek, managing director, Unovis Asset Management-New Crop Capital and Zero Egg board member. “It was an easy decision to continue investing in Zero Egg because it is uniquely positioned given its functionality, taste, and competitive pricing.”
Veteran plant-based restaurateur and Powerplant Ventures co-founder and partner, T.K. Pillan, will join the Zero Egg board of directors as part of the investment deal.
“I’ve been on a mission to offer practical plant-based options for consumers at both the retail and restaurant level for many years. What has been missing until now is a complete, affordable plant-based alternative for eggs,” said Pillan. “Zero Egg is a game-changer for the industry. We’re proud to invest in their team and confident it will be the much-needed affordable and versatile solution for operators looking to continue to reduce their use of animal products.”