For Subscribers

How This Startup Raised a $1.7 Million Seed Round on Chicken-Less Eggs

Clara Foods figured out how to pitch a unique product without making investors balk. Read on to learn how they did it.

By Andrew Rosenblum

Opinions expressed by Entrepreneur contributors are their own.

Eggless egg whites sound like another vegan treat, but San Francisco-based startup Clara Foods is shooting for omnivores. It inserts genes for egg whites into yeast, which then ferments in tanks, like beer, and creates a product that is genetically egg but never involved a chicken. Clara cofounder and CEO Arturo Elizondo thinks that will appeal particularly to those who want to eat eggs but avoid the messy egg industry: Last year's avian flu outbreak, for example, cost the economy $3.3 billion and resulted in the disposal of more than 45 million U.S. hens. Yeast, meanwhile, is drama-free.

Chicken-less egg whites -- you must have developed quite the elevator speech.

We thought one pitch would work for everybody. Just not using a chicken was so revolutionary -- we thought that would be enough. But different investors were interested in different things. Some were true foodies. They asked, "You can create fluffier meringues?" Others were focused on sustainability: They really wanted to do something for the world and the environment.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, get access to a ton of exclusive content and resources that will help grow your entrepreneurial mindset. You’ll find:

  • Exclusive content from our network of today’s leading CEOs and business strategists
  • Receive our flagship Entrepreneur Magazine - free!
  • No more ads, and get access to the Entrepreneur+ homepage
  • Free E-books written by our staff and other industry thought leaders

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.

Leadership

Two Stanford Professors Explain How to Produce Hundreds of World-Changing Ideas In 1 Hour

Cramming everyone into a conference room to "spitball" is a disaster. But with some structure and a system, literally thousands of ideas are within reach.