The capital will also allow the company to continue research and development, meet growing consumer demand and spearhead retail expansion.
The funding round was led by Spring Tide Capital with participation from Access Capital, Seamless Capital, Goat Rodeo Capital and Seaside Ventures.
Zbiotics, which bills itself as the creator of the world’s first genetically engineered probiotics, said genetic engineering allows it to address biological problems arising from contemporary living.
“In a market that craves real solutions, we've shown that being a proudly GMO company prioritizing transparency resonates with consumers, driving ZBiotics' momentum,” said Dr. Zack Abbott, PhD, co-founder at Zbiotics. “With these funds, we aim to meet demand and expand the ZBiotics product line beyond our flagship product."
ZBiotics is exploring solutions that will address a range of concerns like sleep, vaginal health and athletic performance. The company’s second product will be launching in the coming weeks and will focus on microbial diversity in the gut and its related benefits.
The Pre-Alcohol Probiotic Drink
ZBiotics was founded in 2016 under the principle that the company could engineer bacteria to create products that were both specific and useful.
At that time, there was not a single genetically engineered probiotic on the market.
“It was surprising to me because the technology was there, and it had been there for a long time,” Dr. Abbott previously told NutraIngredients-USA. “My passion was around the idea that we could take these beneficial microbes, these probiotics and then engineer them to execute some useful function in the body. And that felt like a really powerful idea. There were lots of things that we could do with that.”
ZBiotics’ first product was Pre-Alcohol Probiotic Drink, which mimics the function of the liver. By breaking down the toxic byproduct of alcohol, acetaldehyde, it helps consumers feel better a day after consuming alcohol. Some of the same genetic components ZBiotics invented for Pre-Alcohol can be used in future products.
According to Adam Ramada, co-managing partner of Spring Tide Capital, the Pre-Alcohol Probiotic Drink has led to commercial success for the company. ZBiotics has more than doubled sales every year, selling over 5 million units cumulatively and reaching company-wide profitability in 2023.
GMOs and public perception
ZBiotics does not shy away from the GMO label, advertising the company’s discovery process as ‘ethical engineering’ and ‘proudly GMO.' Dr. Abbott said most consumers are not concerned about GMOs.
“Indeed, there's a lot of the unbiased data to show that the vast majority of people in this country are really more than anything ambivalent around GMOs,” he said. “We are committed to changing the conversation around what GMOs can be, especially because the technology is essential for addressing some of humanity’s biggest challenges. We also recognize that even though we take a responsible approach to this technology, it’s important for the world that others do the same.”
ZBiotics has pioneered new safety and quality standards and is advocating for these elevated standards across government, industry and academia.
“Using modern genetic engineering and microbiology, we can basically use these bacteria, these probiotics as agents of health, as specific tools to address specific problems,” he added. “I think there's this whole world of things that we can do to help you live a healthier life as you navigate the pitfalls of being a modern human.”
