ALTR, a Phoenix-based nanotech beverage company founded in 2020 by Richard Schatzberger and Daron Hollowell, has secured a multi-million-dollar pre-seed round. Backed by leading food and beverage venture investors including FTW Ventures, Bluestein Ventures, Suntory Global Spirits, and AZ Venture Capital Inc., as well as prominent angels, this funding empowers ALTR to accelerate its patent-pending alcohol-removal technology designed to reshape the global drinks industry.

Introducing the “Flavor-First” Velvet Blade™

At the heart of ALTR’s mission is the Velvet Blade™, a membrane-based system that removes ethanol at the molecular level while preserving the essential aromas, mouthfeel, and structural complexity of the original drink. Unlike traditional methods that rely on heat or dilution - often destroying nuanced flavors - Velvet Blade™ gently reduces alcohol content with surgical precision. This opens a new frontier of "spectrum drinking," allowing winemakers and beverage producers to offer finely tuned alcohol levels without sacrificing authenticity.

Addressing a Shifting Market

With younger consumers prioritizing wellness and moderation, the global low- and no-alcohol beverage market has surged in recent years. Meanwhile, climate change is causing grapes to ripen faster and accumulate more sugar, leading to higher alcohol levels in wines - a major headache for vintners striving to maintain balance and flavor. ALTR provides a powerful, technology-driven solution to these industry-wide challenges, empowering brands to adapt without compromising the experience their consumers cherish.

Beyond technical ingenuity, ALTR’s story offers a profound lesson for founders: innovation isn’t just about creating new products - it’s about solving silent pain points in existing industries. Viticulturists and brewers don’t explicitly ask for an alcohol-removal system; instead, they wrestle quietly with flavor loss, rising ABV, and shifting climate impacts. ALTR addresses that invisible gap by enabling producers to reduce alcohol content without compromising sensory quality or the ritual of enjoying a perfectly crafted drink. By identifying and tackling these hidden challenges, they’ve created a tool that becomes essential rather than optional.

For founders, the key takeaway is that your most valuable products often live in the friction your users have accepted as unavoidable. Find that silent frustration. Design for it. Then position your solution as the bridge from inevitability to elegance. In doing so, your product transforms from a novelty to a necessity, deeply embraced without needing heavy marketing.

Scaling with Precision and Purpose

With this new funding, ALTR plans to expand its engineering team, refine pilot programs with select premium wineries and beverage brands, and further optimize its technology for large-scale commercial use. The Velvet Blade™ system is designed for seamless integration into existing production lines, utilizing a low-energy, water-efficient process that appeals to sustainability-focused producers.

The company's unique positioning at the crossroads of flavor, health-conscious consumption, and climate adaptation makes it an attractive partner for progressive beverage makers looking to future-proof their offerings.

Strategic Investor Alignment

Support from top-tier investors reflects deep confidence in ALTR’s vision and commercial potential. These backers bring not only capital but also industry expertise and critical connections throughout the beverage value chain, enabling ALTR to accelerate adoption and build credibility with major producers.

Competitive Edge in a Saturated Market

Traditional alcohol-reduction methods like distillation or vacuum evaporation often strip away delicate flavor compounds, resulting in flat or unbalanced products. ALTR’s Velvet Blade™ stands out by offering precision control while preserving every aromatic and textural detail, a feat that sets it apart in a market where authenticity defines consumer loyalty.

What’s Next: Pilots, Partnerships, and Expansion

With its early funding secured, ALTR will focus on collaborative pilot programs with key industry partners to fine-tune its technology across various beverage categories. Starting with premium wines, ALTR aims to expand into spirits, cocktails, and even emerging non-alcoholic craft beverages, opening new creative possibilities for producers worldwide.

Ultimately, the goal is to license the Velvet Blade™ system to wineries, distilleries, and beverage manufacturers globally, empowering them to offer flexible, customized alcohol levels without fundamentally changing their production processes.

A New Chapter in Beverage Innovation

ALTR’s pre-seed funding is more than just a financial milestone - it represents a pivotal shift in how the world might consume alcohol in the coming decades. By targeting hidden pain points and transforming them into opportunities, ALTR stands at the forefront of a movement towards spectrum drinking: a future where choice, health, and flavor can coexist seamlessly.