Mushroom innovation: MycoTechnology closes US$39m Series D financing round

12 Jun 2020 --- Food-tech company MycoTechnology, which works with the natural transformative power of mushrooms to make new-to-the-world food ingredients, has closed a Series D round of financing, which totals over US$120 million from investors. This US$39 million round, co-led by Greenleaf Foods, SPC, S2G Ventures and Evolution Partners, was completed during the midst of the COVID-19 pandemic, demonstrating investor confidence in MycoTechnology during uncertain times for the global economy, says the company.

Other investment partners include Rich Products Ventures, Tyson Ventures, Continental Grain, Middleland Capital, Bunge Ventures, Seventure Partners, Cibus Investments Limited and Kellogg’s eighteen94 capital investment arm. 

“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,” says Alan Hahn, CEO of MycoTechnology. “I believe this is what attracted our investors to look closely at our 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.”

“The additional funding will help bring our forward-thinking vision to reality,” Hahn adds. “With many game-changing products currently under development, the funds will help prepare for new product introductions that truly have the potential to change the food industry landscape and bring never-before-seen ingredients to the market.”

MycoTechnology’s flagship product, ClearTaste, is the world’s first organic bitter blocker and flavor clarifier that helps clean up the taste of functional ingredients. It is also marketed as a powerful tool in the fight against excessive sugar and sodium. Moreover, the company’s PureTaste ingredient is touted as creating a complete plant protein with improved functionality and bioavailability.

“As a producer of plant-based foods in North America, we have already experienced fermentation, but MycoTechnology’s unique application has the potential to transform the plant-based space by unleashing new protein sources,” explains Dan Curtin, President of Greenleaf Foods. “Its commitment to clean, simple ingredients, food quality and sustainability align with our values and desire to find new ways to meet changing consumer demands.”

“We understand the power of MycoTechnology’s innovative technology, which will enable food manufacturers to offer new plant-based products that meet the demands of today’s health-conscious and environmentally-aware consumers,” explains Dinsh Guzdar, Managing Director of Rich Products Ventures. 

“We also look forward to leveraging Myco’s unique capabilities in producing great-tasting, plant-based proteins in a scalable, cost-effective manner,” he adds. 

Meanwhile, Erin VanLanduit, Managing Director of Tyson Ventures, says her company has been impressed with MycoTechnology’s 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 toward the future,” she concludes. 

Edited by Elizabeth Green