San Francisco-based biotech startup ZBiotics has successfully closed a $12 million Series A funding round, marking a significant milestone for the company known for its genetically engineered probiotics. The oversubscribed round was spearheaded by Spring Tide Capital, with additional participation from Access Capital, Seamless Capital, Goat Rodeo Capital, and Seaside Ventures. The infusion of capital is set to fuel ZBiotics’ expansion into retail markets and the development of new probiotic applications.
ZBiotics, founded by Dr. Zachary Abbott, has garnered attention for its innovative approach to probiotics, proudly embracing genetic modification as a cornerstone of its technology. The company’s flagship product is a shelf-stable probiotic shot designed to mitigate the effects of hangovers. This product addresses the lingering presence of acetaldehyde, a byproduct of alcohol consumption that contributes to hangover symptoms. By introducing a genetically engineered probiotic that produces an enzyme similar to the one in the liver, ZBiotics aims to break down acetaldehyde in the gut more efficiently.
Dr. Abbott emphasizes the value of modern biotechnology in creating effective consumer products. “We use modern biotechnology, and that’s why the product is good,” he stated in a previous interview with AgFunderNews. He aims to elevate the dialogue around genetic engineering, making it more nuanced and rational by showcasing tangible consumer benefits.
While the market is saturated with so-called hangover cures, most of which rely on vitamins or hydration aids, ZBiotics differentiates itself by leveraging genetic engineering. Dr. Abbott points out that many existing products have no substantial effect, a sentiment echoed by major healthcare institutions like the Mayo Clinic. Although ZBiotics refrains from branding its product as a definitive hangover cure, it promotes its Pre-Alcohol Probiotic Drink as a way to improve daily life and enhance the next morning after drinking.
The newly acquired funds will also support the development of additional probiotic products. ZBiotics plans to launch a gut-health product that promotes microbial diversity in the gut within the coming weeks. The company is also exploring other potential applications of its technology, including products aimed at improving sleep, vaginal health, and athletic performance. “Genetic engineering allows us to make totally new products that address real-world consumer needs, and we’re witnessing a growing interest in our technology and brand,” says Dr. Abbott.
Since its inception as a direct-to-consumer brand in 2019, ZBiotics has expanded its sales channels to include Amazon and select brick-and-mortar stores. The company has achieved impressive growth, doubling its sales annually and reaching profitability in 2023. According to Dr. Abbott, the company currently enjoys an “infinite runway,” indicating strong financial health and future potential.
The successful Series A round and subsequent expansion plans signal a promising future for ZBiotics. As the company continues to innovate within the probiotics market, its commitment to genetic engineering and consumer-focused solutions could well redefine the landscape of gut health and beyond.