ZBiotics raises $12m Series A for its ‘proudly GMO’ probiotics targeting gut health, hangovers and more

• San Francisco-based ZBiotics, which makes genetically engineered probiotics, has raised a $12 million Series A round of funding.
• Spring Tide Capital led the oversubscribed round, which also included participation from Access Capital, Seamless Capital, Goat Rodeo Capital, and Seaside Ventures.
• ZBiotics will use the funds to expand its retail footprint as well as bring more use cases for its genetically engineered probiotics to market.

‘Proudly GMO’

By its own admission, ZBiotics is “proudly GMO,” a phrase the company even includes on the packaging for its genetically engineered probiotic it sells directly to consumers.

Said product — the company’s first — is a probiotic bacteria in the form of a shelf-stable shot that can reduce the impacts of a hangover after consuming alcoholic beverages.

Drinking produces a byproduct in the human body called acetaldehyde, which the liver processes relatively quickly but which also lingers in the gut. This is largely the culprit behind those nasty morning hangovers after a night of drinking, says ZBiotics.

The company has made a genetically engineered probiotic that can produce the same type of enzyme as the one in the liver and thus quickly break down acetaldehyde in the gut, relieving the after-effects of drinking.

“We use modern biotechnology, and that’s why the product is good,” ZBiotics founder Dr. Zachary Abbott said in an interview last year with AgFunderNews. “What we’re trying to accomplish here is elevating the conversation around genetic engineering to make it a little bit more nuanced and rational. The first step is to make products that people want, that benefit the consumer.”

‘Totally new products’ through genetic engineering

There are plenty of known “hangover cures” on the market, most of which are vitamins or hydration aids, said Dr. Abbott, who added that such offerings “have no effect” despite what their marketing messages suggest.

Major healthcare players, including the May Clinic, agree that studies have yet to find any natural remedies that “consistently or effectively improve hangover symptoms.”

Granted, ZBiotics doesn’t explicitly claim to be a hangover cure, sticking instead to marketing-friendly lines about being able to “improve daily life” and “setting you up for a great next morning.”

Nonetheless, the company recommends taking a shot of its Pre-Alcohol Probiotic Drink before drinking. (It also goes to great lengths to explain how taking a shot of Pre-Alcohol doesn’t make alcohol safer or change one’s level of intoxication.)

The Series A funding will go towards developing new use cases for the probiotics market. A gut-health product will launch “in the coming weeks” that will focus on microbial diversity in the gut. ZBiotics is also exploring other areas including sleep, vagina 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,” states Abbott.

ZBiotics launched as a direct-to-consumer offering in 2019; last year, it started selling via Amazon and also has products in a handful of brick-and-mortar shops.

The company says it has “more than doubled sales every year and reached company-wide profitability in 2023. It has, according to Zach, “infinite runway” at the moment.