Do you have to be a med-tech or technology startup company to raise venture capital in Minnesota? Not always. Local startup Rae Wellness just closed on a $9.5 million round of Series A financing. Founded in 2019 the company produces an array of wellness supplement products.
Rae began by selling its supplements online but debuted in Target stores last year. According to the company’s announcement of the new financing, its growth has “skyrocketed” and was “further accelerated by the Covid-19 pandemic.”
The Series A financing round is led by California-based PowerPlant Partners which targets investments in “emerging consumer wellness companies.” In addition to PowerPlant, two existing investors were also part of the funding round: New York-based Able Partners and M13, which has offices in Los Angeles and New York.
Rae is a women-led company.
“We are excited to have found investing partners who believe in our vision, team and potential to support all consumers – especially underrepresented individuals – to feel their best from the inside out through a universe of supplements that nourish the body and mind,” said Angie Tebbe co-founder and CEO of Rae CEO in a statement.
Rae has now expanded to new retailers including Amazon, Anthropologie, Thrive Market, Standard Dose and other retailers. According to Rae, “the brand is on target for triple digit growth in 2021.”
Rae currently sells supplements in four categories: whole body, skin, sexual wellness, and mood. Product names include DeStress Capsules (for mood), In the Mood Capsules (for sexual wellness) and Rebalance Capsules (in the whole-body category).
The company was originally backed by Boston-based Victress Capital, a women-led firm that focuses on early-stage venture capital investments.
“Rae fits squarely in line with our focus on investing in high growth, disruptive consumer brands generating an impact through wellness and social responsibility,” said Dan Gluck, a partner with
PowerPlant Partners, in a statement.
Rae’s filings with the U.S. Securities and Exchange Commission in December list its business address as Eden Prairie. Rae itself does not operate any retail stores.