The Convergence of Brain Health and Snacking

The intersection of nootropic supplements, designed to enhance brain function, and the popular snack food industry was inevitable. This convergence is now a reality.

Investment in Mindright

Rob Dyrdek, a well-known celebrity, professional skater, and entrepreneur, along with Chris Bernard, have announced a new investment in their co-founded company, Mindright. Joining them are prominent celebrity investors such as Joe Jonas, Travis Barker, and Marcus Lemonis of The Profit.

Research and Key Ingredients

Co-founder Bernard explained that their journey began with exploring condition-specific food and beverage options. Extensive research led them to the realm of nootropics and adaptogens.

Working with a food scientist, who preferred to remain anonymous, Dyrdek and Bernard identified ashwagandha as a crucial ingredient for their snack bars.

A Powerful Combination

The company utilizes a blend of ingredients, including ginseng and cordyceps mushrooms, alongside ashwagandha. This combination represents a potent mix of established and emerging supplements within the nutraceutical industry.

From Initial Pitch to Investment

Bernard initially presented a different product idea to the Dyrdek Machine group, but it didn't resonate with Dyrdek at the time.

However, the situation changed when Bernard returned with a plan to merge functional foods, probiotics, collagen, mental health support, adaptogens, and supplements into a novel snack offering.

Dyrdek’s Vision

“Bernard presented a concept evolving from functional foods and probiotics, merging them with the mental health and supplement worlds,” Dyrdek stated. “This was a clear success for us.”

Dyrdek’s firm focuses on supporting solopreneurs, collaboratively shaping and building companies while providing essential outsourced resources. They also fund initial development to facilitate access to capital markets.

Dyrdek Machine’s Investment Strategy

To date, Dyrdek and his team have invested in 15 consumer and entertainment businesses, with five subsequently being acquired.

Their typical investment approach involves becoming co-founders, sharing common stock, and then negotiating a preferred equity investment ranging from $250,000 to $500,000.

Equity and Valuation

“We co-found and share a common share class, with our initial funding being preferred equity,” Dyrdek clarified. “We determine a valuation that fairly balances the deal, negotiating the equity needed for development with the initial capital.”

Founder-Driven and Market Agnostic

Dyrdek describes his investment firm as being driven by the founder’s vision and not limited to specific markets.

“We seek well-rounded founders and then analyze the market to expand its appeal,” Dyrdek explained. “Instead of directly pursuing nootropics, we discovered that ‘good mood’ resonated most with consumers, leading to our ‘Good mood superfood’ branding.”

Proven Successes

Bernard’s confidence in Dyrdek’s ability to drive business growth has been validated by the success of other companies within the firm’s portfolio.

Dyrdek highlighted Outstanding Foods, another investment, which recently secured a $10 million round at a $100 million valuation. Momentous, a supplement manufacturer, also completed a significant funding round after raising $5 million in 2019.

Celebrity Endorsements

Dyrdek’s involvement in Mindright attracted additional celebrity investors after they sampled the product.

Joe Jonas and Travis Barker are now among the company’s seed investors, drawn to the quality and innovation of the product.

“Their enthusiasm stems from a belief in the product we meticulously crafted,” Bernard concluded.