‘Exciting things’ ahead for natural energy drink-maker KEY in 2025: ‘the beverage startup space has never been more welcoming’
[Disclosure: AgFunderNews’ parent company AgFunder is an investor in KEY.]
Gone are the days of energy drinks being the sole territory of athletes. Thanks to the ongoing craze for functional beverages, natural energy drinks are now popular with a wider demographic, from those seeking better taste to those making healthier lifestyle choices.
Illustrating this shift is KEY Energy Drink (KEY), an all-natural energy drink powered by ketones that launched midway through 2024 with a $4 million seed round led by?AgFunder?and backed by Alethia Venture Partners (Alethia Venture Partners)?and?AgFunder SIJ Impact Fund.
Food industry vets Karishma Thawani (Coca-Cola) and Dr. Tekla Back (PepsiCo) singled out Avela [R] 1,3-butanediol, an organic compound that can be converted to keytones to boost energy, as the star ingredient of its product.
Since its launch in 2024, KEY has expanded its reach across New York as well as at Erewhon and Sprouts stores, through Amazon, and direct via the company’s own website.
Thawani and Back spoke to us for AgFunder’s Global AgriFoodTech Investment report where they discussed the ups and downs of building a startup in 2024 and what’s next for the brand.
AgFunderNews (AFN): How would you describe your experience building a startup in 2024 ?
KEY: KEY had an incredible year in 2024. As a brand-new startup, we raised funds in Q1, launched in Q2, hit mainstream retail by Q3, and met our annual targets in Q4—a wild ride in the best way.
Breaking through in marketing wasn’t easy, with global events like the Olympics and elections competing for consumer attention and driving up advertising costs. Extreme weather disrupted distribution on both coasts. Additionally, inflation pressured ingredient and packaging prices. Fortunately, our novelty and rapid scaling helped us navigate these hurdles.
On the bright side, the beverage startup space has never been more welcoming. Investors and retailers embraced us, and the industry’s maturity means there’s now a strong playbook and expert network to lean on. Our unique proposition is energizing the category, and we’re just getting started.
AFN: What global challenges is your company trying to solve?
KEY: [We are] on a mission to unlock human potential. We believe every human has innate natural aptitude to tap. KEY powers the brain and body so we can be our best.?
We are committed to being zero sugar, all natural and affordable, reducing global sugar and ultra-processed products consumption, and democratizing access to leading edge ingredient innovation.?
Unlike traditional performance brands, we champion inclusivity, creating a diverse and social community beyond extreme sports or solo achievements.
KEY represents the next evolution in health—empowering everyday people to reach their full potential.
AFN: What do you have planned for 2025?
With our 2024 launch behind us, 2025 is all about scaling brand awareness and expanding retail distribution. Expect bold, experiential marketing that brings KEY to life, from street activations in New York to immersive event sampling.
We’re also partnering with influencers and educators to amplify our message and reach new audiences. Later in the year, we’ll kick off our next fundraising round—so if you’re interested, let’s talk.
Exciting things are ahead for KEY in 2025—stay tuned
Download AgFunder’s Global AgriFoodTech Investment report here.
#AgFunder #keytones #energydrink #functionalbeverages #humanpotential #zerosugar #sugarfree #sport #high-performance #startup #venturecapital #VC #investing #impactinvesting