- Jul 3, 2024
- 2 min read
Hero Bread, a Californian start-up producing better-for-you baked goods, has raised $21 million in a new financing round to accelerate its national expansion.
The round was co-led by Cleveland Avenue, DNS Capital and Composite Ventures, with additional participation from existing investor Greatpoint Ventures. The funding will allow Hero Bread to build out its distribution, invest in current retail partners and continue innovating its product line-up.
Hero Bread offers artisanal breads, croissants, biscuits, tortillas and more that contain significantly less net carbs, sugar and calories than their traditional counterparts while packing more protein and fibre.
The brand's products are now available in over 4,000 retail locations across the US, as well as online and at select health-focused restaurants.
YuChiang Cheng, CEO of Hero Bread, commented: "This fundraise will enable us to better fulfil our mission to drive wellness from the plate up, gaining distribution and meeting the consumer where they want to shop."
The better-for-you bread category is booming, with premium products potentially driving over $6 billion annually in the $40 billion US baked goods market. Hero Bread is poised to extend its leadership position in this high-growth segment.
"Hero Bread is at an exciting inflexion point, with proven product-market fit, strong revenue growth and a mission we deeply admire," said Jim Armstrong of Composite Ventures, a Forbes Midas List investor. "With this funding, the company is extremely well-positioned to extend its leadership in the better bread space."
Since launching in 2022, Hero Bread has rapidly expanded its distribution and introduced products like artisan French croissants and Hawaiian rolls. The brand has built a loyal consumer following, driving significant category growth and demand.
The new financing brings Hero Bread's total funding to over $68.5 million. The company's backers include institutional investors, as well as high-profile individuals like Super Bowl champion Tom Brady, NBA star Kevin Durant and musician The Weeknd.
