It was only a matter of time before someone married the nascent nootropic supplements forto the snack bar craze that continues to attract dollars and exits.
That time is now, as Rob Dyrdek, the MTV-famous celebrity, pro-skater, and entrepreneur, and Chris Bernardthey co-founded, Mind Right, alongside celebrity investors including Joe Jonas, Travis Barker, and The Profit’s Marcus Lemonis.
“When we started down the path of condition-specific food and beverage… we started doing a lot of research into the nootropics and adaptogens space,” said co-founder Bernard.who did not want to be named (which isn’t sketchy), Dyrdek and Bernard were introduced to several companies producing Ashwagandha, which the two had settled on as the new key ingredient in their snack bars.
Along with ginseng and cordyceps mushrooms, the company has a trifecta of new (and old) supplements that have taken the nutraceutical world by storm.
Bernard had initially approached thegroup about another product, but the company was too far along and not something Dyrdek felt passionate about backing. The for this nootropic nosh.
“[Bernard] brought back the concept of the path of what’s evolved from functional foods and probiotics and collagen and sort of the and adaptogen and the supplement world and said here’s how to merge these,” Dyrdek said of Bernard’s second pitch. “It was a for us. Our process supports a solopreneur where we help shape and together and provide the outsourced resources. We fund the development of the idea to go to the capital markets.”
So far, Drydek and his team have made 15 investments in, and five of that businesses have since been acquired.
Most deals from Dyrdek Machine follow a similar trajectory. The firm becomes a co-founder, shares common stock, and negotiates a preferred equityinfusion. Typically those deals will range from $250,000 to $500,000.
“We co-found it, and we share that common share class, and our first a valuation that balances out the deal,” Dyrdek said. “How much equity do we want to develop with you is what we negotiate with that initial capital.”
Dyrdek describes hisas founder-driven and market agnostic. “We want a well-rounded, multi-dimensional founder, and then we look at the market and how do we evolve it into something that has a larger, broader appeal,” Dyrdek said. “Rather than chasing down nootropics, we found that ‘good mood’ was to the consumer base. That’s why we drove ‘Good mood superfood.'”
Bernard’s faith in Dyrdek’s ability toforward has been proven in the evolution of other companies in the firm’s portfolio. Dyrdek pointed to Outstanding Foods, another investment recently closing a $10 at a $100 million valuation. Dyrdek said that another startup in the portfolio, Momentous, a supplement manufacturer, also recently closed on a after raising $5 million in 2019.
For Mind Right, Dyrdek’s involvement brought in other celebrity names once they tried the product. The company counts Joe Jonas andamong its seed investors.
“They were excited to get involved in this because they believed in what we took the
to create,” Bernard said.