The value of Bill Gates’s, Dicaprio funded Beyond meat skyrockets 163 percent after IPO

Key Highlights

The company which offers plant based beef and pork substitutes, raised over $240 million in IPO making the value of the company worth $1.5 million.

Beyond meat offers vegan based meat substitutes, especially burgers.

The company aims at making food products that are meat free but retain the taste of meat.

On Thursday, Beyond meat started trading publicly, making a strong debut as the stock prices of the company doubled in almost instantly

The company which offers plant based beef and pork substitutes, raised over $240 million in IPO making the value of the company worth $1.5 million. Share price was initially set at $23 but then increasing by the company to 25$. Beyond meat finally opened on the Nasdaq stock market at $46 per share.  The share price finally closed at over $65 with a surcharge of 163%. In valuation.

This strong debut raced pass the 81% gain shown by Silk road medical last year. Even globally, Beyond meats emerged a force to be reckoned with as it bested all the debuting companies in 2019.

Beyond meat offers vegan based meat substitutes, especially burgers.

The company aims at making food products that are meat free but retain the taste of meat.  They aim to make meat alternatives easily available and more appealing to everyone.

Related : PolicyBazaar’s parent group ETechAces raises $152 million in series F funding round.

The target audience of Beyond meat are both Vegans and non- vegans who are attempting to reduce their meat intake. The whole idea of beyond meat has helped them gain a unique position in the $1.4 trillion meat industry. Pea- protein is the base ingredient used to replicate the meat taste in their products.

Beyond meats has been growing rapidly in the past few years.  Their products are now available at prominent chains such as Del Taco, TGIF , Whole foods and Target. Beyond foods products are available at around 35,000 outlets. In 2018, beyond foods generated twice the amount of revenue generated in 2017. However, the company has cut losses of around $30 million over the past two years.

Beyond meat plans to utilize the raised $240 million IPO for developments in manufacturing, research and marketing.

The company also boasts of many high profile investors which include Microsoft co-founder Bill Gates and many Hollywood A-listers such as Leonardo dicaprio and Jessica Chastain. These backers explained why they invested in Beyond meat and also highlighted the ever increasing demand for meat substitutes in the general populace.

In an interview at Nasdaq exchange, actress Jessica Chastain said that she decided to invest in Beyond meat when she was unable to find  a beyond meat burger for the four months that she was in Toronto. Being a vegan herself she loves plant-based products hence she invested in Beyond meat.

Related : Sachin Bansal’s fund BACQ calls off ₹20 CR investment deal with Milkbasket

The company wants to draw on the public awareness about personal health, climate change, animal welfare and environmental conservation. However, the main hurdle faced by Beyond meat is that their raw material suppliers are limited. If the supply from these suppliers might be disrupted then that could wound the business.  The business risks also include strong market competition, the company being unable to come up with new products and inability to attract new customers.

Tyson, which is the world’s largest meat producer is coming up with a new line of meat free products. Other competitors also include impossible foods which partnered up with burger king which are reportedly developing meat products from animal cells.

Despite all this the future looks bright for Beyond meat as showcased by its stellar IPO debut and Uber and Airbnb are expected to make offerings later this year.

Stay connected with us for latest updates!