MycoTechnology receives US$85M injection to take mushroom fermentation platform global

31 Mar 2022 --- Mushroom mycelia researchers and supplier MycoTechnology nabbed a further US$85 million in the company’s largest series E funding round yet. MycoTechnology will use the funds to develop the capacities of its mushroom fermentation platform, with sights on expanding across key markets in Europe, Asia and the Middle East. 

The latest funding round brings the company’s raised funds to a total of US$200 million since launching in 2013. The US-based company offers a mushroom fermentation process that harnesses the properties of mycelia to create food ingredients.

A spokesperson for MycoTechnology tells NutritionInsight: “Our innovation pipeline will continue to deliver solutions we have discovered in mycelia, focused on sustainable protein, sugar reduction and nutrient density.”

The funding round was led by an affiliate of the Oman Investment Authority (OIA), a state-owned wealth fund and recent MycoTechnology investor.

MycoTechnology says its entire supply chain begins and ends in the US.Securing key markets
According to a MycoTechnology spokesperson, Europe, Asia and the Middle East offer unique opportunities for the company:

“Each of these markets is, of course, quite different, with different preferences and market drivers, but we believe our portfolio addresses key consumer needs in each region. We have already seen some major successes, and with this additional investment, we expect to build on that momentum.”

The spokesperson continues that in Europe, plant-based meat and dairy are still growing rapidly. The company hopes to help F&B brands differentiate themselves through MycoTechnology’s products which enhance taste, texture and nutrition, “enabled by a unique fermentation platform.”

The spokesperson describes Asia as an ideal market for the company’s flavor modifier, which will help enable brands to offer enhanced nutrition and functionality without having to compromise on taste.

Looking for a secure food chain
In the Middle East, the spokesperson highlights the need for regional food security in line with the OIA’s goals: “In the Middle East, we believe interest in food security will drive a rise in plant-based products, and we hope to power that movement with our current and future ingredients.”

The OIA reportedly has ambitions to secure major partnerships and ensure local food security and sustainability of the food chain while diversifying the Omani economy. The sovereign wealth fund owns at least two companies in the food industry: Oman Food Investment Holding, Fisheries Development Oman and Vital Foods Technologies.

In February, the OIA signed a deal with MycoTechnology to partner on mushroom-based protein using dates as a main element through Vital Foods Technologies. Oman is one of the world’s biggest producers of dates.Mushrooms are reportedly booming in Europe.

The OIA’s collaboration with MycoTechnology is just one example of recent interest by government-affiliated groups in the role of fermentation technology in securing a sustainable food chain. 

Last month Lesaffre expanded its collaboration with the French National Research Institute for Agriculture, Food and Environment to explore the potential of fermentation technology.

Other new MycoTechnology investors include Nourish Ventures, Alphacy Investment, Rage Capital and Siddhi Capital. Returning investors included Tyson Ventures, S2G Ventures, Continental Grain Company, Bunge Ventures, Maple Leaf Foods, Gaingels and Evolution VC Partners.

Shrooms are booming in Western markets
According to the MycoTechnology spokesperson, mushrooms are rising in popularity across certain markets.

“It is no secret that many Western markets are experiencing a ‘Shroom Boom’ with interest in mushrooms skyrocketing across consumers and categories, in food and beyond. We expect this enthusiasm for mushrooms will only strengthen consumer interest in sustainable protein solutions derived from and made possible by mushrooms.”

The spokesperson continues that those conscious about health are prime consumers for mushroom-boosted products. “At this point, we believe health-focused consumers – people interested in clean label products and added-functionality ingredients – are the early adopters of products featuring mushrooms and mycelia.”

It appears more governments are gaining interest in using mushrooms as an alternative protein source.Developing the potential of an invisible system
According to MycoTechnology, mycelia comprise the invisible root structure of mushrooms. Using “age-old” processes and modern science, the company says it developed solutions to address the demand for sugar reduction, alternative proteins, nutrient density, adaptogens and more.

“Through the mycelium, a fungus secretes an array of enzymes into its environment, which break down biological polymers into absorbable material, as well as leaving behind beneficial metabolites,” says the spokesperson.

Past products developed by the company include MycoTechnology’s FermentIQ, a line of fermented pea and rice-based protein ingredients made with shiitake mushroom mycelia. The protein is said to be better-tasting, more digestible and more functional compared to other plant proteins and is meant for use in products such as meat replacements or dairy alternatives.

The company’s range also offers ClearIQ, a line of clean label bitter-blocker that aids in sugar and salt reduction and increases nutrient density. ClearIQ also functions as a bitter-blocker and helps plant-based formulations overcome common flavor challenges.

Biotechnology companies across industry appear to be jumping on the fermentation manufacturing trend; in January, Conagen revealed its fermentation-derived kaempferol, a plant-based flavonoid. 

By Olivia Nelson