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The ketogenic diet, or keto diet as it’s commonly known, is a low-carb, high-fat diet that was ‘discovered’ about a century ago to be highly effective in the treatment of epilepsy. But it has only been in the past several years that the keto diet has come back into the public consciousness, both by way of claimants surfacing who credited the keto diet for its health benefits (weight loss among them) and celebrities and athletes extolling the virtues of their low-carb, high-fat diets. As more people ‘go keto’, companies both big and small are quick to spot the business opportunities and are investing in keto startups. Investors are not exceptions here, and it comes as no surprise that the Sharks of Shark Tank have taken notice of the keto craze too.

The Sharks’ Interest in Keto

In the show, ‘Shark Tank’, upstart entrepreneurs make business pitches to a panel of multimillionaire and billionaire investors (hence the nickname ‘Sharks’). The Sharks are always looking for groundbreaking products or services with the potential for lucrative revenue. Over the past several seasons, Sharks have seen a spate of upstarts presenting them with keto-related products, and they’ve smelled their venture-capital money.

They want to invest in the keto industry, in large part, because more people are buying keto-friendly products. The greater the demand for these items, the more they are willing to dish out cash for the right keto product. With growing numbers of people following the ketogenic diet, the potential to find unique, interesting and tasty options that fit within dietary restrictions is expanding.

That’s another incentive for the Sharks’ investment in the keto economy: the possibility for innovation and uniqueness. Keto diets are more than just cutting carbohydrates. Cutting carbs and healthy fat have been sold as a weight-loss regimen, leading to unhealthy, low-fat pretenders like Halo Top that belie the high-fat, low-carb ideal. A keto product needs to be innovative for the product to fit into the consumer’s keto diet and healthy lifestyle. Keto takes the diet to the level of everyday products, not just trendy superfood powders. The richness of keto demands creativity and uniqueness, allowing manufacturers to diverge from the fake food that has dominated our shelves for too long.

Investments in Keto Startups

These will often be the actual founders of startups in the keto space, with many having earned deals on the TV series Shark Tank (the US version of Dragons’ Den), which has seen a slew of keto-focused brands catching the attention of the Sharks. These companies sell a range of keto products, from snacks and beverages to supplements and meal kits. Sharks recognise the potential in the expanding keto market, and are thus investing in these brands, supporting their founders, and making a series of smart business decisions.

The low-carb, high-fat cookies of the Nui clean keto food start-up featured on Shark Tank are another example of keto start-ups having a moment on TV. As the founders explained on the hot and flashing stage of the ABC show, their ‘amazing’ cookies had a unique selling proposition: they were truly delicious, they had no artificial or gimmicky ingredients, and they were made specifically for the keto consumer. The Sharks immediately recognised that, with their superior product, Nui could become one of the early dominant forces in the keto snack market. (Yes, even a keto snack market. Welcome to the future.) And why not? Great taste, a better product, and solving a consumer problem. The Sharks invested and Nui are putting their gem on the shelf faster than you can say ‘lickety-bite’.

A second keto startup that courted the Sharks is Super Coffee, which sells ready-to-drink coffee beverages with MCT oil and protein, as well as a dose of caffeine. Describing their drinks as a healthier and more nutritious option to the mass-craze for lattes and other higher-calorie coffee-based drinks, the Super Coffee founders secured an investment with Joe Castle, the former CEO and current strategic advisor at Big Very Berry, Inc. Sharks noted that their company brings functional beverages to the mainstream market who are looking to grab and go, observing that people are particularly occupied and in need of some energising and portable nutrition.

Innovations in the Keto Industry

Alongside funding for keto startups, they encourage innovation within the keto industry, seeking to develop new and novel products that could be advantageous to the growth of the keto market. The inclination for creativity shows an eagerness by the Sharks to expand the products and goods available to the keto consumer, ensuring quality and diversity in fitness as an industry. [

One interesting opportunity the Sharks have explored is businesses that customise nutrition offerings for keto dieters. With an ever-increasing keto population, the demand for personalised keto products and services will only grow stronger and provide savvy entrepreneurs with the potential to acquire a disproportionate share of the market – and the funding attention of the Sharks.

The other keto trend that gets the Sharks excited is the rise in sustainable brands and eco-friendly products. This is a category that has been recently pushed into the spotlight by the growing concerns over the environment, and people are becoming more aware of the impact that what they eat has on the planet. Entrepreneurs who are able to formulate keto products that are not just healthy fats and foods – but also sustainable and eco-friendly – will be able to position themselves as favourites among customers who care, and attract investment from environment-friendly investors like the Sharks.

However, as the Sharks’ response highlights, their interest in keto is part of a larger trend that suggests the demonstrated success of the ketogenic diet could lead to a mainstream keto industry. If our living arrangements demonstrate that the ketogenic diet is accessible and attractive, our spending patterns further show that the keto food industry is growing, expanding and meeting a need for new and tasty keto-friendly products. Moreover, the Sharks embody a larger trend in mainstream investment in keto startups.

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