Better Meat Co. has secured $31M in Series A funding to accelerate Rhiza mycoprotein production, expand its alternative protein portfolio, enhance sustainable food solutions, drive plant-based innovation, and compete with commodity beef prices as early as next year.

The Sacramento-based company will channel the new investment into scaling up Rhiza, its proprietary mycoprotein, which is produced through the continuous fermentation of the fungus strain Neurospora crassa.

Unlike protein isolates, Rhiza is a whole-food biomass that contains all essential amino acids, boasts 50 percent protein by dry weight, and has a digestibility score comparable to that of beef and eggs. With more fiber than oats and more potassium than bananas, Rhiza offers a nutrient-rich foundation for multiple applications.

Once hydrated, the ingredient can be complemented with fats and flavours for meat-free applications, or ground together with conventional meat. “We’ve primarily focused on Rhiza’s use as a meat enhancer, and most of our customers are meat companies, with some plant-based meat companies as well,” says CEO Paul Shapiro.

Funding Amid Industry Downturn

The Series A round, co-led by Future Ventures and Resilience Reserve, comes at a time when funding for alternative proteins has sharply declined. In fact, sector funding dropped by 44 percent in 2023, 27 percent in 2024, and 49 percent in the first half of 2025.

Against this backdrop, raising $31M signals investor confidence in Better Meat Co.’s ability to scale mycoprotein production and compete directly with commodity beef.

“The world needs better ways to make protein, and The Better Meat Co has invented one of the most efficient – and delicious – ways to do it,” said Future Ventures co-founder Steve Jurvetson, who is joining The Better Meat Co’s board of directors, alongside Glenn Hickman.

Rhiza already features in blended meat and plant-based products, supplying clients such as Hormel Foods, Maple Leaf Foods, and Perdue Farms. When combined with animal protein, Rhiza enhances yields, reduces saturated fat, and adds fiber, making meat both healthier and more sustainable. Moreover, regulatory approvals from the USDA, FDA, and Singapore position Rhiza as one of the few mycoproteins cleared for direct inclusion in conventional meat.

Expanding Applications

While meat remains central, the company sees vast potential beyond it. Rhiza has demonstrated strong performance in dairy alternatives, including cheese, yogurt, and milk, while also enhancing baked goods by increasing moisture, protein, and fiber content.

Its neutral taste and color allow for seamless integration into tortillas, brownies, and nutrition bars, positioning Rhiza as a versatile base for sustainable food innovation.

Currently, Better Meat Co. operates a 9,000-liter bioreactor in Sacramento, producing thousands of pounds of mycoprotein. However, the next leap involves scaling with co-manufacturers to 150,000-liter tanks, supported in part by a $1.5 million US Department of Defense grant.

This expansion could yield eight-figure revenues in the first year, pushing the company closer to its mission of undercutting commodity beef prices by 2026. Paul Shapiro describes the journey as both challenging and promising, particularly in an investment climate where alternative protein startups face significant challenges to survival.

Yet, with patents, regulatory approvals, and multiple global agreements projected to generate $13M annually, Better Meat Co. continues to position Rhiza as a game-changer in plant-based innovation and sustainable food systems.

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