August 25, 2015

Denver, Colorado-based MycoTechnolgy has raised $6.7 million in a Series A round of fundraising led by S2G Ventures and involving Middleland Capital and Seventure Partners.

MycoTechnologies has pioneered the development of a variety of new food processing systems using mushroom roots (mycelium). Although the full range of possibilities for their MycoZyme technology is not yet known, the company has used their platform to remove unwanted compounds from foods, add beta glucans and highly digestible protein to raw agricultural materials, create a less bitter coffee, improve the taste of chocolate without added sugar, remove gluten content from wheat, and to remove the bitter aftertaste from stevia.

The company has recently secured an agreement with the sweetener company, U.S. Niutang to use the MycoZyme process to remove the bitter aftertaste from its NiuVia stevia product, and is also in negotiations with various other coffee, chocolate, and baked goods companies.

The funds raised in this round will be used to support the firm in expanding its research and development initiatives and its operations and sales staff, and to facilitate the more widespread adoption of its technology, according to the company’s founder and chief executive officer, Alan Hahn.

A second round of fundraising by the company is expected to close before the end of 2015.