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The Spoon

Daily news and analysis about the food tech revolution

MycoTechnology

MycoTechnology Wins the Radicle Protein Challenge, Secures $1M

MycoTechnology, producers of fermented mushroom protein, won the $1M prize for receiving first place in the Radicle Protein Challenge this week. The Syngenta Group, a multinational agriculture company, and Radicle Growth, a venture capital firm specializing in food and agriculture startups, hosted this challenge. An additional $250K was awarded to runner up Blue Nalu, a cellular aquaculture company.

The competition hosted 150 applicants from all over the world and came to a head with a virtual event this week where each of the four finalists pitched. The two other finalists include Cell Farm and Trophic.

In addition to funding, MycoTechnology will have access to the Syngenta Group and Radicle Growth’s global agriculture and food networks. MycoTechnology’s mushroom fermentation technology is used to create products including ClearTaste, which blocks the bitter flavors of certain foods, and PureTaste, a mushroom-based protein.

At the beginning of 2020, the Good Food Institute predicted that one of the alternative protein trends of the year would be innovative ingredients and enhanced flavors, especially coming from fermented yeasts and mushroom varieties. Additionally, a recent report released on the Good Food Institute added fermentation as a third category (alongside cultured meat and plant-based proteins) in the alternative protein sector. Besides MycoTechnology, other companies have also taken advantage of using the umami-flavor and versatility of different mushrooms. Meati transforms mushroom mycelium into a juicy plant-based steak. Mushlabs and Ecovatives both use mushrooms to provide better texture for plant-based meat alternatives.

Prior to the competition, MycoTechnology raised $39M over the summer. This brings the company’s total funding to $121.6M.

MycoTechnology Raises $39M Series D for its Mushroom Fermentation Platform

MycoTechnology, which transforms mycelia into functional ingredients like alternate protein, announced this week that it has raised a $39 million Series D round of funding. Food Navigator first reported the news and wrote that the round was co-led by Greenleaf Foods, SPC, S2G Ventures and Evolution Partners, with Tyson Ventures, Kellogg’s Eighteen94 Capital, and others participating. This brings the total amount raised by MycoTechnology to $121 million.

MycoTechnology’s mushroom fermentation platform is used to create a number of mycelia-based products. The company’s ClearTaste promises to act “as a shield for your tongue temporarily blocking bitter tastes from being perceived.” And its PureTaste is an alternative protein source derived from shiitake mushrooms.

Of note in MycoTechnology’s investor list are Tyson and Kellogg, two big names in BIG FOOD. Tyson was already an existing investor in MycoTechnology, but participation from both household names futher illustrates how alternative protein is catching on with the traditional food companies.

Mushrooms as a vehicle for alternative proteins are totally hot right now. Ecovative is using mycelium to give plant-based meats better texture. Prime Roots uses fermented myco-protein to make things like fake bacon (fakon?). And Emergy Foods is making whole cuts of “meat” out of fermented fungi.

As we’ve written before, there are a lot of benefits to this fungi-forward approach to creating alternate proteins. In addition to its ability to recreate meat, it has the same protein profile of traditional meat. Fungi also has fiber, which animal-based meat does not have.

MycoTechnology’s funding comes at a good time as sales of plant-based products are skyrocketing (we know, mushrooms are fungi, not plants, but you get what we’re saying). Plant-based meat sales, in particular during this pandemic have surged as well.

With all this interest and the flexibility of fungi, we’ll probably be seeing more money flow into mycelia this year.