Flavorful Oats Overnight Closes on $35 Million

Ready-to-eat breakfast company Oats Overnight has closed a $35 million Series B round led by Enlightened Hospitality Investments (EHI), a firm co-founded by restaurateur Danny Meyer.

The new funding round also saw participation from Sonoma Brands Capital, Impatient Ventures, Singh Capital Partners, Morrison Seger Venture Capital Partners, and BFG Partners. The new capital will be used to expand the company’s retail presence and manufacturing capabilities, and fund continued product development.

Oats Overnight’s product is a spoon-free, high-protein oatmeal that customers prepare by soaking overnight, making it ready to eat by morning. The brand has grown significantly since its inception and involves subscribers directly in the research and development process. Each month, new product variations are tested by its community, who provide feedback that the company uses to refine or approve new offerings. According to the company, this model allows Oats Overnight to respond rapidly to consumer preferences allowing its products to consistently align with market demand.

Oats Overnight was founded in 2016 by former professional poker player and now CEO Brian Tate and is headquartered in Tempe, Arizona. “We are thrilled to have EHI as a partner on this next chapter of growth,” said Mr. Tate. “This capital will help us continue our expansion in the retail channel, further develop our manufacturing and distribution footprint, and drive new innovation in collaboration with our community of subscribers.”

“We are proud to partner with Oats Overnight to join them on their mission to make nutrition both craveable and convenient,” said Danny Meyer, co-founder and managing partner of EHI. “We are impressed by their innovative approach to product development and ability to commercialize product lines across digital and retail footprints.”

The ready-to-eat breakfast category, where Oats Overnight competes, is experiencing steady growth driven by increasing consumer demand for convenient, nutritious options. Key competitors in the sector include Quaker Oats, a subsidiary of PepsiCo, and private firms like Kodiak Cakes and MUSH.

Oats Overnight’s business model and operational strategy emphasizes controlling its supply chain from procurement to fulfillment. “Controlling the process from procurement to fulfillment has been a key tenet of our business since inception,” said Vincent Comerford, the chief operating officer of Oats Overnight. “Complete ownership of our supply chain increases resilience while owning manufacturing allows us to produce high-quality products in an iterative way. This process is critical for executing our product development strategy.”

“Now more than ever, consumers are looking for protein-rich, craveable food,” said Nina McKinney, the chief strategy officer of Oats Overnight. “Our model allows us to create products that meet these expectations faster than ever before. Working directly with subscribers to fine-tune these formulas pre-launch ensures our innovation pipeline is always in line with consumers’ evolving preferences.”

New York City-headquartered Enlightened Hospitality Investments was co-founded by Danny Meyer and invests in customer-centric businesses. Beyond capital, the firm provides strategic support, operational experience, and access to relationships that help portfolio companies grow and create value.

California-based Sonoma Brands Capital is a consumer-focused investment firm that specializes in emerging brands within the food, beverage, and wellness sectors.

Chicago-based Impatient Ventures is an early-stage venture capital firm that invests in startups within the food and beverage industry.