Microbes are essential to all life on earth and, in fact, the most dominant form of life on Earth. The study of microbes has historically advanced society in countless ways such as the creation of the first smallpox vaccine, identifying the causes of cholera, tuberculosis, and anthrax, and the discovery of penicillin. Today, microbes in controlled settings can improve healthcare, food production, and agricultural output. Seed Health is a microbial science company that is focused on developing next-generation probiotic and live biotherapeutics for consumer use. Unlike traditional biotech companies that work to solve a single, isolated problem, Seed Health is structured as a platform that is able to synthesize its findings into a growing number of consumer use cases, following a rigorous process that handles development, validation, research, deployment and scaling up.
LA TechWatch caught up with Cofounder and Co-CEO Ara Katz to learn more about the importance of microbiomes, the company’s strategic plans, and latest round of funding.
Who were your investors and how much did you raise?
We raised $40M in a Series A financing. The round was led by impact investor, The Craftory, alongside TechBio investor, ARTIS Ventures and life science investor, GISEV, with participation from existing investors, Founders Fund and 8VC.
Tell us about your product or service.
We are a microbial sciences company developing next-generation probiotics and live biotherapeutics with applications in gut microbiome, skin microbiome, oral microbiome, infant health, nutrition, and women’s health. Our first innovation is the flagship DS-01™, a 24-strain multi-species, multi-strain broad-spectrum probiotic.
What inspired the start of Seed Health?
The microbiome is a new frontier for health, and the way we live. I knew whatever I did next would be in health, but it was my personal journey of pregnancy and breastfeeding that inspired my deeper exploration of the microbiome and how microbes are foundational to the development of a child and could be utilized to impact health and the way we care for ourselves. Through this exploration, I met Raja, my cofounder, who had been tracking the microbiome since 2006 and has a unique skill set of translating breakthrough research into viable, effective innovations. With a field moving as fast as microbiome in so many areas at some of the best academic research institutions around the world, our vision was to build a platform focused on the translation of microbial research across various applications in consumer health, regulated therapeutics, and environmental solutions.
How is it different?
In contrast with single technology, single platform companies, our decentralized model enables rapid, efficient advancement of microbial research from discovery to market across a pipeline of applications. The combination of our life science and consumer DNA means an interdisciplinary, design thinking approach that goes beyond the rigor of our science and creates a differentiated offering in both efficacy and experience. This includes developing a new standard in consumer probiotics—a category that is fast-growing, but confusing and sensationalized.
What market you are targeting and how big is it?
The global probiotics market is expected to grow to $74.3B by 2025, but this doesn’t account for the tsunami of disruption that is coming in other global categories like oral hygiene and skincare that are not currently factored into this data. These significant consumer sectors, as we have already seen with infant formula, will be forever changed by the advancement of microbiome research and the probiotic applications that will develop from there.
The global probiotics market is expected to grow to $74.3B by 2025, but this doesn’t account for the tsunami of disruption that is coming in other global categories like oral hygiene and skincare that are not currently factored into this data. These significant consumer sectors, as we have already seen with infant formula, will be forever changed by the advancement of microbiome research and the probiotic applications that will develop from there.
What’s your business model?
In partnership with leading researchers and academic collaborators across various disciplines of research, we advance microbial research from discovery to market. Today, we only commercialize our DS-01™ flagship product through single-channel DTC subscription, though with new capital, we will be expanding to additional channels and territories.
What was the funding process like?
Fundraising was unique during COVID, but in many ways more efficient. Our Series A was raised entirely on Zoom calls and we have yet to meet two of our primary investors in person.
What are the biggest challenges that you faced while raising capital?
Because we work in areas that are typically siloed in venture capital (consumer health and therapeutics), we had to identify investors who understood the vision (regardless of regulatory path) and the common denominator of our mission. Each investor in this round meaningfully reflects domain expertise in each.
What factors about your business led your investors to write the check?
The scalability of our platform, our growth metrics, Scientific Board, strong brand equity and integrity we’ve built as a thought leader in our space, and an IP portfolio and strain bank that sets us apart.
What are the milestones you plan to achieve in the next six months?
Key team hires, the advancement of multiple clinical trials, channel and territory expansion, and the launch of our next product…and some other things we’re not quite ready to talk about!
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Think methodically about when and if you actually need the capital and be strategic about who you take it from.
Where do you see the company going now over the near term?
To a place of scalable infrastructure as we prepare for this next phase of growth and expansion.
What’s your favorite outdoor activity in LA?
Hiking with my son, Pax.
