The US company developing mushroom-based food ingredients has raised $39 million from the investment arm of several world-class food manufacturers
World-class investors have taken part in the Series D funding round of mushroom fermentation technology company MycoTechnology. Headquartered in Aurora, Colorado, the food-tech start-up has secured $39 million.
The Series D round was co-led by food manufacturer Greenleaf Foods, SPC, S2G Ventures, and Evolution Partners, with participation from Rich Products Ventures, Tyson Ventures (the investment arm of Tyson Foods), Continental Grain, Middleland Capital, Bunge Ventures, Seventure Partners, Cibus Investments Limited, and eighteen94 Capital, the investment arm of Kellogg’s.
With the most recent round of funding closed, MycoTechnology has attracted $120 million in funding to date. The company is now considered one of the most valued food technology start-ups in the world.
“We do not innovate for the sake of innovating. We create products that solve the biggest challenges in the food industry, like creating great tasting products without excessive sugar, salt, or fat and doing so in a more sustainable way,” said MycoTechnology chief executive Alan Hahn.
For Hahn, the innovative ethos of the company is what attracted investors to look closely at its company. “When they saw the many ways that mushroom fermentation can truly transform the food industry for the better, they decided to invest, even during challenging times,” he said.
Hahn said the funds will help prepare for new product introductions designed to change the food industry landscape.
Plant-based food manufacturer Greenleaf Foods has joined the funding round as the company believes in the potential of MycoTechnology’s unique application. “[The technology] has the potential to transform the plant-based space by unleashing new protein sources,” said Dan Curtin, president of Greenleaf Foods.
Rich Products Ventures is a pioneer in plant-based, non-dairy products such coffee creamer and whipped toppings. Managing director Dinsh Guzdar said the company invested in MycoTechnologies because its applications “will enable food manufacturers to offer new plant-based products that meet the demands of today’s health-conscious and environmentally-aware consumers”.
“We also look forward to leveraging Myco’s unique capabilities in producing great-tasting, plant-based proteins in a scalable, cost-effective manner,” said Guzdar.
Erin VanLanduit, managing director of Tyson Ventures, said the company has been impressed with the novel approach to ingredient creation through mushroom fermentation from the beginning. “Tyson is focused on ensuring the growing global demand for accessible, sustainable protein is met; we need partners like them, innovating with that same eye towards the future,” VanLanduit explained.
MycoTechnology helps the food industry create healthier products without excessive sugar, salt, and fat by working with the natural transformative power of mushrooms to make new-to-the-world food ingredients.
ClearTaste, its flagship product, is the world’s first organic bitter blocker and flavour clarifier that helps clean up the taste of functional ingredients. The product is also a powerful tool in the fight against sugar and sodium.
PureTaste is MycoTechnology’s second product in the market. It was designed to fill the void in the plant-based protein market, creating a complete plant protein with improved functionality and bioavailability.
MycoTechnology is working on a series of game-changing products currently under development.
Date published: 11 June 2020