Hero Bread just closed a $21million financing round. This puts the company’s total funding at nearly $69 million as of July 2024.
GreatPoint Ventures, an existing investor, increased their investment along with new investors such as Cleveland Avenue, DNS Capital, and Composite Ventures joining in.
Key points-
- Hero Bread secures $21 Million in funding.
- DNS Capital, Composite Ventures, Cleveland Avenue among new investors.
- The new funding is supposed to expand distribution and reach.
Hero Bread, a company that’s just 2 years old at this point, was launched in 2022 with backing from influential personalities such as Tom Brady, Kevin Durant, and even The Weekend. Its prime focus is selling low-carb, high nutritional baked products.
The company is a definition of “necessity is the mother of inventions”. Cole Glass, the founder of Hero Bread needed a low-carb alternative to flour-based foods due to allergies. One self-baked muffin led to another and Hero Bread was born.
Its list of products includes breads, buns, rolls, tortillas, etc. It’s primarily a B2C model allowing consumers to purchase items directly from www.hero.co.
Consumers can also purchase items from stores such as Safeway, Giant Eagle, Fresh Thyme, and 2600+ others.
The company offers two modes of purchase. There’s a single-time purchase or a subscription. The subscription lets consumers set a specific interval at which the selected products are repeatedly delivered by Hero.
The funding round, which was completed in 90 days, is supposed to “enable us to better fulfil our mission to drive wellness from the plate up, gaining distribution and meeting the consumer where they want to shop.”, said YuChiang Cheng, the Hero Bread CEO.
As of today, the better-for-you market in the U.S. is poised at nearly $83.6 billion! Its CAGR is expected to be about 2.9% in the upcoming years which is probably one of the reasons that got investors interested in Hero products.
The majority of this new funding is supposed to go towards expanding distribution and “meeting the customer where they want to shop” -YuChiang Cheng.
Hero’s established and growing consumer base and demand seem to have played a major part in the funding round.
The products at Hero do speak for themselves. With its resisting wheat starch that refuses to be broken down and absorbed as sugar, it’s a science-backed offering at this point.
Then the fact that there are no purchases and rather everything is actually baked in-house and that they substituted seed oil with Olive oil can be tested and verified by anyone.
With the rising health concerns and more of the world shifting towards healthy food habits, investors believe Hero Bread is a train that’s only going to move forward.
