Egg-cellent news: Hampton Creek raises $23M

BeyondEggs-logo-300x300Eggs from caged hens are the cruelest of all factory-farmed products, animal welfare advocates say. So if you care about animal welfare, you should be rooting for Hampton Creek Foods, a San Francisco-based technology company that says it aims to “enable the production of healthier food at a lower cost, starting with the displacement of the conventional chicken egg.”

Today, Hampton Creek is announcing that it has raised another $23 million in venture capital money in a Series B round led by Horizons Ventures, a technology fund overseen by Hong Kong-based billionaire Li Ka-shing, one of Asia’s richest men. He joins investors and partners of Hampton Creek that include Jerry Yang, the former CEO of Yahoo!; Vinod Khosla of Khosla Ventures; and Eagle Cliff, the investment fund of billionaire climate activist Tom Steyer and his wife Kat Taylor, the CEO of OnePacificCoast Bank. Bill Gates, who wrote about Hampton Creek here, has also invested, through Khosla.

I met Josh Tetrick, Hampton Creek’s founder, last year at the Fortune Brainstorm Green conference, after writing about the company. (See What’s for breakfast? Time to get Beyond Eggs) Josh is a very personable guy, a vegan, a former college football player and a Fulbright Scholar who worked in South Africa, Nigeria and Liberia before focusing on the food system, and how to improve it.

Josh believes that the plant-based egg substitutes being developed by Hampton Creek will deliver health benefits (they’re lower in fat and have no cholesterol) and environmental benefits (they require less energy to produce, generate fewer greenhouse gases and less waste) over conventional eggs from caged hens.

Nor will they cost more than conventional eggs. In fact, Tetrick believes that his team of food scientists can outcompete the chicken. In the press release announcing the new round of funding, he is quoted as saying: “Solving a problem means actually solving the problem for most people – not just the folks that can afford to pay $5.99 for organic eggs.”

JustMayo-600x450Hampton Creek has made a lot of progress in the last year. It now has a product called Just Mayo on the shelves at Whole Foods. It’s described as a plant-based, egg-free, dairy-free mayo-style condiment. Up next is egg-free cookie dough and an a liquid plant-based product that could substitute for scrambled eggs.

Meantime, the company says that in the last 90 days it has “signed partnership agreements with 6 Fortune 500 companies, including some of the largest food manufactures and retailers in the world.” It won’t name the companies or talk about the scale of the agreements, so it’s hard to know how meaningful they are.

Still, this new round of fundraising means that Hampton Creek has now raised $30 million in venture money. That’s a sign that the company is moving in the right direction.

An update: Early this morning, Josh Tetrick sent me the picture below from China where he had just met with Li Ka-Shing. That’s Josh T. in the middle, and on the left is his longtime friend Josh Balk, an animal-welfare activist with the Humane Society of the U.S. who works with businesses like Smithfield to improve their treatment of animals.

Picture with Mr. Li

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