US start-up Meati Foods, a producer of mycelium-based meat alternative products, has been acquired by Yasir Abdul, CEO of tech company InvenTel.

Meati Foods, founded in Colorado in 2017, is known for its clean label, whole-cut-style meat substitutes made from fungi via fermentation.

The company made headlines earlier this year following an unexpected financial crisis, which saw Meati forced to give notice of mass layoffs to its 150 employees. A sudden cash sweep by the company’s lender in February reportedly left the team scrambling for capital, ultimately unable to recover.

In May, the company was reported to be preparing for a distress sale valued at just $4 million – despite having raised over $450 million in funding and a previous valuation of $650 million following a $150 million Series C investment round in 2022.

Now, tech leader Abdul has announced the acquisition of Meati Foods, and has now re-established it as a refreshed business named Meati Holdings. As the president of Meati Holdings, Abdul said he saw the opportunity to revive the brand and make it a ‘leader in the clean food space’.

He commented: “Our initial goal is to stabilise operations – as the Thornton, Colorado facility, where Meati products are made, is currently unprofitable and unsustainable”.

Abdul added: “Unfortunately. when start-ups and founders build a brand, they have tunnel vision. Often, they do not understand the numbers, the revenue or the gross profit. Meati is now poised for growth.”

He has revealed plans to explore other options for Meati, including a direct-to-consumer business model. Abdul said the goal is to grow the company’s operational value and leverage his existing retail relationships, made through his experience heading up InvenTel, to expand Meati’s distribution.