Athletic Greens Valuation: $1.2B After $115M Funding

Athletic Greens Secures $115 Million Funding, Valuation Reaches $1.2 Billion

Athletic Greens, the creator of the nutritional beverage AG1, has successfully raised $115 million in a new funding round. This investment elevates the company’s pre-money valuation to $1.2 billion.

Company Origins and Founder's Journey

Founded in 2010 by Chris Ashenden, who also serves as CEO, the New York-based company stemmed from a personal quest for improved well-being. Ashenden sought to understand the reasons behind his persistent health issues.

Ashenden shared with TechCrunch that despite his dedication to health and wellness, he continued to experience illness. Extensive testing, costing $35,000, revealed that his body was not effectively absorbing nutrients.

The Development of AG1

The initial solution involved a complex supplement regimen of 50 pills daily. This prompted Ashenden to question conventional nutritional wisdom and explore a more practical approach to daily health maintenance.

This exploration led to the creation of AG1, Athletic Greens’ primary product. AG1 consolidates over eight nutritional products into a single formula, encompassing multivitamins, probiotics, and immune support components. The product is currently in its fifty-third iteration, scheduled for release later this year.

Investment Details and Board Changes

Alpha Wave Global spearheaded the growth funding round, with participation from new investor Mark Vadon and existing investors including SC.Holdings, Bolt Ventures, and Dr. Peter Attia, alongside contributions from loyal product users.

As a result of this investment, Rick Gerson, Chairman and Chief Investment Officer at Alpha Wave Global, and Mark Vadon, founder of Zulily and Blue Nile and former Chairman of Chewy, will be joining the Athletic Greens board of directors.

Previous Funding and Growth

This recent funding round follows a previous, undisclosed investment in July 2021, marking the company’s first external equity funding since its inception. Notable backers included Hugh Jackman, Cindy Crawford, and Steve Aoki.

Prior to seeking external investment, Ashenden successfully bootstrapped the company to a $150 million revenue run-rate.

Strategic Expansion and Market Opportunity

“Bootstrapping fostered innovative thinking and problem-solving,” Ashenden stated. “We remain committed to enhancing our customer experience and effectively communicating our message in a competitive landscape.”

Athletic Greens is targeting the expansive global health and wellness market, estimated to be approaching $7 trillion. The company’s first equity investment was driven by reaching an inflection point, enabling increased capacity.

Leadership and Future Plans

Last month, Kat Cole, a former executive from Focus Brands, joined the company as President and COO, signaling an expansion into offline channels and web3 initiatives to strengthen community engagement and brand loyalty.

“Our focus is on growth and continued innovation,” Ashenden added. “We aim to establish ourselves as a leading global business on a significant scale.”

Recent Performance and Investment Allocation

In the previous year, Athletic Greens experienced approximately 200% revenue growth and over 100% customer growth. The new financing will be allocated to brand awareness, strategic partnerships, and supply chain improvements.

The company plans to expand its geographic reach and accelerate its ongoing research and development efforts, which have been central to Athletic Greens since its founding a decade ago.

Workforce Expansion and Customer Focus

Operating with a fully remote workforce, Ashenden anticipates tripling the company’s current team of 150 employees in 2022.

“We are empowering customers to take greater control of their health,” Ashenden explained. “Consumers are increasingly prioritizing a healthier, higher quality of life, and we are dedicated to serving their needs and providing them with an exceptional wellness journey.”