A YORK-based vegan start-up which launched 13 months ago has secured £7.5m to scale the business.

Vegan fried chick*n business, VFC Foods Ltd, has raised £7.5m ($10.3m) from a seed round - related investments from up to 15 investors to support the early stages of a new company - which was led by Veg Capital.

The company had previously raised £3m in pre-seed funding, also via Veg Capital, a specialist fund that donates all profits to animal charities.

VFC was founded in December 2020 by York-based Matthew Glover, co-founder of Veganuary, and York chef and restaurateur Adam Lyons, who owns Source in Castlegate.

Matthew said: “There has been huge interest from investors and we’re very grateful for that. By working with Veg Capital we’ve been able to focus purely on scaling the business as fast as possible to take advantage of the opportunity.”

A larger Series A round - which occurs when a product shows clear evidence of traction - is being considered for mid-2023 to bring in outside investment.

The vegan brand which says it 'set out to make great-tasting food that doesn’t cost a wing and a leg' has enjoyed a rapid rise from direct-to-consumer sales to distribution overseas.

VFC also achieved its first major listing at Tesco in October, with VFC Original Recipe Chick*n Fillets; VFC Original Recipe Popcorn Chick*n; and VFC Original Recipe Chick*n Bites all stocked in the frozen aisle.

York Press:

VFC’s commercial director, Stewart McGuckin said: “The reception from both customers and consumers has been incredible, and the successful Tesco launch has allowed us to secure listings in more of the UK’s top four grocers, as well as the largest food service wholesalers.

“Expansion within the UK has been phenomenal, and we are also seeing strong international demand, particularly from the US.”

The company’s recent trip to Plant Based World Expo in New York convinced them to abandon their incremental approach to a US launch, and instead adopt a more fast-paced plan.

This latest round will support greater capacity, team building, marketing, R&D and scaling the business internationally.

VFC is hiring a US manager to fast-track growth in North America where major listings are in the pipeline, as they are within the EU and other territories, too.

Adam is working on v3 to bring the texture and flavour of the core even closer to animal-based chicken.

“Our recent poll revealed that more than two thirds of people would be willing to trade meat from animals for plant-based meat if it tasted as good. That’s very encouraging for our mission.

“Already, we’ve spared 60,000 birds but, as that is just the number of animals crammed inside two sheds, we have a long way to go. We have an incredibly driven team, all 100 per cent committed to doing good in this world, and we are determined to play our part in ending the suffering of animals in factory farms.”

Veg Capital's Cliff Johnson said: “The rapid expansion of VFC has been exciting to see, and Veg Capital is delighted to support this young company as it hits its stride. My wife and I have been so impressed that we’ve chosen to reinvest through our private fund Johnson Resolutions as well.”