Israel’s YO-Egg has secured $5 million in an oversubscribed seed funding round led by Stray Dog Capital and NFX. The latter is a tech investor which has never previously invested in a food company.
Other investors included Surround Ventures and Secret Chord Ventures. YO-Egg will use the funding to increase production in preparation for its launch at US restaurants, with the ultimate aim of producing 50,000 plant-based eggs per day.
The company’s vegan poached and sunny-side-up eggs will soon be showcased at the National Restaurant Association trade show in Chicago, which will take place from May 21-24. By the end of 2022, the eggs are set to debut at restaurants in Greater Los Angeles.
In Israel, the plant-based eggs are already on the menu at some outlets, including a conventional breakfast chain. YO-Egg is also now working on other products such as hardboiled and scrambled eggs.
Whole plant-based eggs
While there are numerous companies producing plant-based egg alternatives, most offer powdered or liquid products. YO-Egg is one of very few to create a substitute for whole eggs, and the company claims its poached and sunny-side-up products are a market first.
Recent research found that the market for vegan eggs would be worth $3.3 billion by 2031, growing at a CAGR of around 8.3%. This growth is being driven by concerns about high cholesterol levels in eggs, as well as food safety issues.
“Our vision is to create the world’s largest egg company, not egg alternative company, and not the largest plant-based egg company, but the largest egg company without using chickens,” YO-Egg CEO Eran Groner told TechCrunch. “If we want to do that, we have to move as quickly as possible. That was the main reason why we wanted to raise venture capital.”