Functional water brand Lemon Perfect gets $6.6m in seed funding

  • 24 August 2020
Investors coming from food and drink, media, music, and sports and entertainment have participated in the round
Lemon Perfect product range

Lemon Perfect, a functional water brand based in California, has raised $6.6 million in a seed funding round. The fresh capital comes from a network of investors with an interest in food and drink as well as media, music, sports and entertainment.

Founded by Yanni Hufnagel in 2017, Lemon Perfect produces zero sugar cold-pressed lemon water with hydrating electrolytes and essential antioxidants.

The Lemon Perfect product line comprises four flavoured varieties: lemon, dragon fruit mango, blueberry açaí, and peach raspberry. Products are sold in 355-ml plastic bottles.

“The early investor enthusiasm for Lemon Perfect has been energising and humbling,” said Hufnagel. “The brand is resonating broadly across multiple demographics, and that diversity is well represented by our investors.”

Beechwood Capital, The Big Squeeze, Goat Rodeo Capital, LivWell Ventures, Melitas Ventures, R3 Venture Partners, the RCV Frontline Fund, the Stage 1 Fund, and Skyview Capital are among the consumer-focused funds that participated in the round.

“We are extremely excited to be partnering with Yanni,” said Alex Soltani, Skyview Capital’s chief executive. “Lemon Perfect has that winning combination that is so difficult to find: an incredible product, an amazing team, and a massive market opportunity.”

Other investors include Barak Bar-Cohen (former executive of Bai Brands), Lindsay Gottlieb (Cleveland Cavaliers), Prakash Janakiraman (Nextdoor), Michael Levine (Creative Artists Agency), Cuonzo Martin (Missouri Tigers), Jordan Schultz (ESPN), NBA champions Channing Frye and Nick “Swaggy P” Young, and current NBA players Spencer Dinwiddie, Blake Griffin, Josh Hart, Damian Jones, Kyle Kuzma, Meyers Leonard, and De’Anthony Melton.

Distribution growth

Lemon Perfect said that the proceeds from the capital raise will be used to fund distribution growth, increase marketing support, and recruit key talent.

In February, the company announced a key distribution deal with New York’s Big Geyser, one of the largest distributors of premium non-alcoholic drinks and snacks in the US.

Jerry Reda, Big Geyser’s chief operations officer, said: “The brand looks, tastes, and feels like a billion-dollar brand. I have never witnessed a brand garner the consumer acceptance that Lemon Perfect has in such a short time.”

The Lemon Perfect website sells direct to consumers, and products are also available on Amazon. The brand said it has secured shelf space in nearly 3,000 stores across California, including 7-Eleven, CVS, Publix, Ralphs, Target, and Whole Foods Market.