HumanCo Is Attracting Capital From Shawn Mendes, Cindy Crawford

(Bloomberg) -- HumanCo, a firm that’s building a portfolio of brands targeting health-conscious consumers, raised bridge financing from billionaire Brian Sheth, venture firm 8VC and several other investors including celebrities Shawn Mendes and Scarlett Johansson. 

The $35 million of funding, structured as a simple agreement for future equity, or SAFE note, can be converted into equity at a maximum valuation of $225 million, according to a person with knowledge of the matter. 

The funding will help the firm acquire a majority stake in Against the Grain, a Vermont-based maker of grain-free and gluten-free pizza, bread and baking mix, HumanCo founder and Chief Executive Officer Jason H. Karp said in an interview. 

HumanCo aims to acquire two to three brands a year, Karp said, depending on available opportunities. It plans to hire and further invest in its existing portfolio, which includes plant-based food brands Coconut Bliss and Monty’s, as well as Snow Days, a maker of grain-free pizza bites.

“We’re at an inflection point,” Karp said, adding that HumanCo’s new investors can help the company promote their own healthier lifestyle choices, create awareness about its products, and potentially develop new ones. 

The company has a long-term goal of generating several hundred million dollars in annual revenue and achieving a valuation of more than $1 billion ahead of a public market debut, Karp said previously. 

Other investors in the SAFE note include Jazz Venture Partners; actors Edward Norton, Priyanka Chopra and her husband Nick Jonas; retired tennis pro Andy Roddick; former PepsiCo Chief Executive Officer Indra Nooyi; ex-Whole Foods CEO Walter Robb; and Cindy Crawford and her husband Rande Gerber.

Read more: Venus Williams Joins Health Brand Owner HumanCo’s Advisory Board

Karp, a former hedge fund manager and founder of Tourbillon Capital Partners, also helped found Hu Products, the maker of paleo, organic and vegan chocolate that’s now owned by Mondelez International. 

Being a fan of Hu chocolate is partly how 8VC co-founder Joe Lonsdale, who also helped found Palantir Technologies Inc., got to know Karp. 

“HumanCo has a dedication to health and has already achieved high growth with a deep understanding of long-tailed consumer appeal,” Londsale said in an emailed statement. The firm can “create a new standard in healthy living.”

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