The $10 million seed funding round was led by Rahal and Valor Siren Ventures, in addition to Peter Attia, a Stanford, Johns Hopkins and National Institute of Health-trained physician, and Andrew Huberman, a neuroscientist and Stanford University School of Medicine professor of neurobiology and ophthalmology.
The capital will go towards operations, R&D, new employees and expansion into retail. The brand will launch direct-to-consumer on Sept. 16 on the David website, Rahal said.
David bars contain 28 grams of protein, 150 calories and zero grams of sugar, with more information on ingredients announced upon the launch, according to Rahal.
The brand’s identity draws inspiration from Michaelangelo’s sculptural masterpiece, David, which represents the “rigor and intelligence and discipline” it takes to create a timeless product, Rahal said.
Rahal: David’s funding size is ‘not normal,’ but investors are looking for ‘evidence of success’
David, co-founded by Rahal (who co-founded RXBAR, acquired by Kellogg’s for $600 million in 2017) and Zach Ranen (a former investor and founder of the better-for-you cookie brand RAIZE), identified protein-forward products as a promising macronutrient category. This decision was driven by the growing consumer demand for functional snacks.
While numbers can vary, the US protein market size is poised for growth from $6.1 billion in 2024 to $7.4 billion in 2029 at a compound annual growth rate of 3.96%, according to a Mordor Intelligence report. Food and beverages make up the largest (51.9%) share of protein use with the rise of vegan and flexitarian consumers seeking protein offerings.
With backgrounds rooted in both investment and CPG, the founders focused on addressing protein as a “measurable, objective differentiator,” which captured the attention of investors, namely the brand's emphasis on protein and a move away from diet trends, Rahal said.
Rahal admits that the size of David’s round of funding is “not normal,” but his experience “and balance sheet” made it attractive for investors.
“Typically, as an investor, you do not really invest in many things on … food and beverage that does not have any evidence of success,” he explained.
Despite this, he emphasizes that an objectively differentiated product paired with a macrotrend that exhibits longevity will grab investors’ attention. With 28 grams of protein in each David bar, the brand intends to stand out from other brands in the category, including RXBAR which contains 12 grams of protein, ALOHA at 14 grams and KIND which has 12 grams, among others.
“The macrotrend of protein is pretty compelling and easy to get behind. … [It] is very clear that [it] is not slowing down and it is not a dogma-based trend that is common in food and beverage, it is very evidence-based,” he said.
Rahal’s advantage of leveraging his expertise and credibility with his former brand, RXBAR, helped establish trust with investors, but the other part of the puzzle was steering away from dietary trends and instead focusing on “evidence-based nutrition,” he said.
For the pitch, Rahal pointed out that it certainly helped that he put in the leading round coupled with his RXBAR credibility but the “macro trend of protein is pretty compelling and easy to get behind” versus building a product rooted in dietary trends, he said. One of the biggest lessons Rahal learned about pursuing a long-lasting CPG brand was through RXBAR’s inability to adapt to “migrating trends from paleo and keto,” and instead focusing on creating a snack bar that balanced a “protein to calorie ratio,” he said.