Akua Raises $3.2M to Create Kelp-Based Burgers

The Expanding Market for Meat Substitutes and AKUA's Innovative Approach

The global market for meat substitutes held a valuation of $4.51 billion in the recent past and projections indicate a doubling of this figure by 2027. This growth is attracting numerous startups, including AKUA, a food technology company focused on alternative meats, as they strive to establish a significant presence within this rapidly evolving sector.

AKUA's Founding and Mission

Courtney Boyd Myers, a former technology journalist, co-founded AKUA with Matthew Lebo five years ago. This decision stemmed from a desire to dedicate her career to creating a lasting positive impact and actively addressing the challenge of climate change.

Having witnessed the effects of a fast-food diet during her upbringing – her father worked in food marketing – Boyd Myers consistently sought healthier food choices that would also benefit the environment.

From Ocean Farming to Seed Funding

The initial concept for AKUA involved replacing unsustainable factory farming practices with regenerative ocean farming. A visit to a kelp farm sparked a strong interest, ultimately leading to the company’s formation.

AKUA recently announced a $3.2 million seed funding round, spearheaded by Vibrant Ventures, bringing the company’s total fundraising to $5.4 million. This total incorporates investments from a Republic campaign, early-stage investors, and contributions from the co-founders themselves.

The investment round also saw participation from a diverse group including Pegasus Sustainable Finance, Halogen Ventures, Fifth Down Capital, Alumni Ventures Group, Karmagawa, New England Patriots coach Jerod Mayo, beauty entrepreneur Cristina Carlino, SmartyPants CEO Courtney Nichols Gould, Sir Kensington’s co-founder Brandon Child, Gellert Global Group president Andy Gellert, SOA’s Seabird Ventures, and the Blue Angels.

Product Development and The Kelp Burger

The company launched its first product, Kelp Jerky, in 2019, offering four distinct flavors. Boyd Myers viewed this as an initial step to introduce ocean-farmed kelp to consumers in a novel way.

“While results were mixed, the jerky proved to be a healthy offering,” she stated. “Following a period of reassessment during the pandemic, we developed The Kelp Burger.”

This innovative burger is vegan, non-GMO, soy-free, and gluten-free. It’s crafted from ocean-farmed kelp, cremini mushrooms, pea protein, black beans, quinoa, crushed tomatoes, and a blend of superfoods.

Due to limitations in conducting in-person food tastings, AKUA initiated a food club, distributing burger samples via mail. This strategy proved successful, with 1,000 customers subscribing, and The Kelp Burger has since become the company’s flagship product.

Addressing Concerns in the Alternative Meat Sector

Many meat alternatives contain chemical preservatives and complex ingredients, potentially undermining the health benefits they aim to provide. Other startups, such as Shiru, are actively working to address this issue by developing healthier binding agents for meat substitutes.

Boyd Myers explained that these concerns inspired AKUA’s approach to formulating its kelp burger, which contains only 15 ingredients, all derived from food sources.

“The initial phase of plant-based eating featured products like the Boca Burger, utilizing beans and tofu,” she added. “The subsequent wave saw the emergence of Impossible and Beyond Meat, and now we are witnessing a return to whole foods and clean eating. We build upon the foundations laid by those who came before us, and their innovations have paved the way for us to create a superior plant-based burger.”

Sales, Expansion, and Future Products

AKUA began direct-to-consumer sales in May and currently ships to all U.S. states except Alaska and Hawaii. While early sales and customer retention are promising, detailed growth metrics are not yet being disclosed. The company is also exploring retail partnerships, with preorders secured from over 100 stores in New York, with plans to expand to San Francisco and Los Angeles in the coming months.

Beyond the jerky and burger, AKUA’s product line includes Kelp Pasta. The new funding will be allocated to research and development, focusing on alternative meat and plant-based seafood options, as well as exploring further applications for kelp and other ingredients like lentils.

AKUA has soft-launched a kelp ground meat product and plans to introduce a kelp crab cake in the second quarter of 2022. The company will also expand its team and intensify its sales and marketing initiatives.

Partnership with Vibrant Ventures

Boyd Myers expressed her enthusiasm for collaborating with Jarret Christie, founder of Vibrant Ventures, whom she met through introductions from other founders. Vibrant Ventures is a recently established plant-based investment fund based in Los Angeles.

Christie recognized Boyd Myers as a community builder dedicated to shifting away from factory farming, combating climate change, and increasing access to affordable, healthy foods.

“Kelp was largely overlooked just six months ago, but is now being considered for applications in animal feed, packaging, and crop fertilization,” he noted. “She is actively collaborating with kelp growers, and I believe this is only the beginning.”