Teatis Closes Seed Round - Low-Sugar Superfood Powders for Diabetics

Teatis Secures $700,000 Seed Funding to Expand Diabetic Health Solutions

The impetus behind Teatis’ creation stems from the personal experience of serial entrepreneur Hiroshi Takatoh, who observed a critical gap in accessible, health-focused nutrition following his wife’s battle with cancer.

Founded in 2017 under a stealth approach, Teatis officially commenced operations in April 2021. The company focuses on a plant-based, sugar-blocking superfood powder specifically designed for individuals managing diabetes.

Seed Funding Details and Investors

Teatis has recently announced the successful completion of a $700,000 seed funding round. This investment elevates the company’s total funding to over $1 million.

Genesia Ventures spearheaded the seed round, alongside contributions from Ryo Ishizuka – the former CEO and co-founder of the Japanese e-commerce firm Mercari – and Takuya Noguchi, CEO and founder of Japan’s skincare brand, BULK HOMME. An additional seven angel investors also participated.

Strategic Focus on the U.S. Market

The newly acquired funds will be allocated towards bolstering production and marketing efforts within the U.S. market. Approximately 122 million Americans currently live with diabetes or pre-diabetes, creating a substantial need for preventative and therapeutic solutions, as stated by Hiroshi Takatoh, CEO and co-founder of Teatis.

Currently, Teatis is concentrating its efforts on the U.S., where its manufacturing facilities are located. Plans for a Series A funding round are already underway, anticipated for the following year.

Addressing a Significant Market Need

“Around 88% of our customer base consists of individuals with diabetes,” Takatoh explained. “Our formulation is specifically engineered to aid in blood sugar management.”

He further emphasized the considerable demand for nutritious, convenient, and functionally beneficial foods tailored to the needs of those with diabetes, given the widespread prevalence of the condition in the United States.

Product Innovation and Key Ingredients

Teatis is also developing a supplement intended for consumers generally interested in reducing sugar intake, as well as those identified as pre-diabetic.

The plant-based powder is formulated without artificial chemicals or sweeteners. It incorporates a unique Japanese ingredient – brown seaweed extract (Arame) – which has demonstrated efficacy in inhibiting sugar absorption within the intestinal tract and subsequently lowering blood sugar levels.

This versatile powder can be easily incorporated into beverages like teas and lattes, or blended into smoothies.

Market Size and Growth Potential

Takatoh estimates the U.S. market for diabetes-specific meal replacements at $5 billion. The broader U.S. consumer packaged foods market catering to diabetes is valued at approximately $300 billion.

Integrated Approach to Diabetic Health

“We are integrating food science and technology to provide solutions for diabetics through both food products and telehealth services,” Takatoh stated.

Introducing Teatis RD on Demand

To establish a comprehensive, one-stop resource for diabetic health, Teatis is launching Teatis RD on Demand this month. This platform will offer a complete suite of services, including food products, telehealth consultations, and customized recipes.

Teatis RD on Demand will facilitate private, one-on-one sessions with registered dietitians. These sessions will be offered at a competitive rate of $29 per 30 minutes, significantly lower than traditional in-person appointments ($150 per 30 minutes) and TeleDoc services ($90 per 30 minutes), according to Takatoh.

Investor Confidence and Future Outlook

Shunsuke Sagara, Investment Manager at Genesia Ventures, commented, “Many established companies in this sector lack the necessary digital expertise and data-driven production methodologies. Mr. Takatoh is a seasoned entrepreneur with the vision and determination to lead this market.”

Sagara expressed enthusiasm for Teatis’ innovative concepts and products, anticipating their positive impact on individuals affected by diabetes and other chronic illnesses.