nuggs Creator Raises $50 Million in Funding

Simulate Secures $50 Million in Series B Funding

Simulate, a company headquartered in New York, has announced the successful completion of a $50 million funding round. This Series B investment was spearheaded by 776, the venture firm founded by Alexis Ohanian.

With this latest infusion of capital, the total funding received by the meat alternative company now exceeds $60 million. The company’s valuation has been established at $260 million following this round.

Nuggs' Rapid Growth and Market Expansion

Simulate’s initial offering, Nuggs, has quickly gained recognition within the food industry. This success is largely attributed to a robust and targeted digital marketing strategy.

The company reports a significant increase in the availability of its product in retail stores over the past half-year. Initially launched in the summer of 2019, Nuggs was first offered directly to consumers via online orders.

This direct-to-consumer model proved particularly effective during the U.S. lockdowns experienced throughout the previous year, according to founder and CEO Ben Pasternak in a statement to TechCrunch.

Shift to Retail and Current Availability

“Consumer demand for convenient frozen food delivery peaked during the pandemic,” Pasternak explained. “Being exclusively DTC at that time allowed us to capitalize on this trend and achieve substantial growth.”

Currently, the majority of Simulate’s revenue is generated through retail sales, driven by increased accessibility and more competitive pricing compared to direct-to-consumer options.

Nuggs are presently stocked in 5,000 retail locations nationwide. This includes major retailers such as Walmart and Sam’s Club, Target, and Whole Foods.

Future Plans: Restaurants, International Markets, and Team Expansion

“We are preparing for a launch within the restaurant sector, including fast food chains,” Pasternak revealed. “Furthermore, we have recently expanded into Canada and are actively developing plans for further international distribution.”

The newly acquired funding will also be allocated to growing the company’s workforce. Simulate currently employs 20 individuals and anticipates increasing this number to 50 by the year 2022.

“More than half of this expansion will be dedicated to bolstering our engineering team,” Pasternak stated, emphasizing the importance of technological innovation for the company’s future.