Meati's $4M Sale: What It Tells Us About the Realities of Scaling Mycelium Meat

Alternative protein startup Meati, once valued at $650 million and backed by $450 million in funding, is preparing to sell for just $4 million. According to court documents filed in Adams County District Court, the Boulder-based company has assigned its assets to attorney Aaron Garber, with a buyer—identified only as Meati Holdings Inc.—waiting in the wings. The sale, if approved by a judge, would allow the new entity to take over operations even before closing.

Image credit: Meati

From Retail Growth to Sudden Crisis

Until recently, Meati had been one of the most high-profile players in the alt-protein sector. In 2024, it secured $100 million in fresh capital and expanded its retail footprint by 2,000 additional stores, taking its total to 7,000 across the United States. Its range of mycelium-based products, including cutlets, steaks, and breakfast patties, was gaining commercial traction. Internal communications reported by BusinessDen show that Meati doubled its revenue and was seeing continued retail momentum.

But behind the scenes, financial trouble was brewing. In late February 2025, a lender repossessed approximately two-thirds of Meati’s cash reserves without prior warning, citing a technical default related to revenue and gross margin covenants. According to CEO Phil Graves, the company was in the midst of a fundraising round that could have extended its operational runway into 2026. Instead, the cash seizure prompted an immediate liquidity crisis.

WARN Notices and Layoffs

Following the cash sweep, Meati issued a WARN notice on March 7 to all 150 employees, warning that operations would likely cease by May 6. The layoffs, affecting all departments from R&D to production, were subsequently made permanent. At the time of the filing, Meati reported holding $158 million in assets. The company’s attorney stated in court that selling the firm as a going concern, rather than liquidating it, would maximise returns for creditors and minimise broader financial fallout.

A Wider Investment Context

Meati’s story is unfolding amid a volatile period for the alternative protein industry. According to Green Queen, global investment in the space fell by 27% in 2024. Plant-based startups saw a 64% drop, and cultivated meat fell 40%. In contrast, fermentation-derived protein companies—like Meati—saw a 43% increase. Meati’s $100 million round was among the largest of the year.

Despite this, the company faced ongoing operational and legal challenges, including multiple layoffs since 2023 and litigation related to intellectual property and marketing claims. Even so, it managed to outperform many of its peers in sales. Circana data shows that its whole-cut mycelium steak ranked among the top 15 growth products in the meat alternative category in 2024.

The Road Ahead

At this stage, little is known about Meati Holdings Inc. or its plans for the business. Court approval is still pending. Whether the new owner intends to restructure the company, maintain operations, or pivot entirely remains to be seen. Meati’s rapid rise and fall serve as a reminder of how external financial pressures can upend even the most well-capitalised startups.