April 28, 2021

By Lynda Kiernan, Global AgInvesting Media

Ecovative employs modern technology to unlock the natural potential of mycelium (the vegetative root structure of fungi that look like fine white filaments, and contain the same polymer as crab shells) to create next-generation materials stemming from mushrooms. 

Now having mastered the science of mycelium to grow custom solutions for partners throughout North America, Europe, and Asia, the company has raised $60 million in funding through a Series D led by Viking Global Investors, with support from Senator Investment Group, AiiM Partners, Trousdale Ventures, and others. 

A wide range of industries from fashion to tanneries, and packaging suppliers and beyond, are increasingly turning to biomaterials to improve their sustainability profiles. For instance, in the case of leather, even if manufacturers rely only on cast off hides from slaughterhouses in the food production supply chain, the processing of such hides usually includes the use of heavy metals and other pollutants that are the cause of environmental harm. 

“Substantial advances in fungi-based leathers and the growing number of companies that are producing them suggests that this new material will play a considerable role in the future of ethically and environmentally responsible fabrics,” said Alexander Bismarck with the University of Vienna, and co-author of a review article published in the journal Nature Sustainability that posits that mushroom leather answers both the ethical issues many have with animal-based materials and the environmental cost of synthetic substitutes. 

With more than a decade of experience, Ecovative uses proprietary bioreactors and workflow to capitalize on mycelium’s unique biology that can be made to grow materials that self-assemble into complex, fully-formed structures. The process requires no light, can be carried out in any location, and sequesters carbon in the growing fungus. These resulting materials are high-performance, low-environmental impact products used by the food, textile, and packaging industries.

One of the most recognized names to announce it was using mushroom leather is Adidas, which at the beginning of this year announced the launch of a new line of shoes made from the material. Other high-end, iconic designers also have shared that they are using the animal-free material in their lines, including Hermes and Stella McCartney. 

“Mycelium is a unique material that outperforms other sustainable alternatives in industries as diverse as fashion and food,” said Evan Lodes, partner, Senator Investment Group (which also participated in Ecovative’s 2019 funding raise), and Ecovative board member. “Ecovative pioneered the field of mycelium materials, and has invested in the research and development necessary to deliver it at the scale and cost required to make a significant impact.”

Although in demand, producing these biomaterials at industrial scale has been a challenge – an issue that the capital from this round will work to answer.

Ecovative has developed its AirMycelium manufacturing platform – its next-generation Mycelium Foundry which has recently activated 100,000 pounds per year of new manufacturing capacity. This funding will support another 10X boost in production for the company.

“Today’s investment in our next-generation Mycelium Foundry will produce immediate results for our business and the planet,” said Eben Bayer, CEO and co-founder, Ecovative. “We have a track record of scaling and shipping mycelium-based products. This growth will accelerate our deployment of these important solutions at greater scale and across more industries.”

This round, which has brought total capital raised by the company to $100 million, closely follows Ecovative’s announcement that it has partnered with UK-based packing licensee Magical Mushroom Company, which itself recently announced the opening of four more facilities to supply the UK and EU markets with sustainable packaging solutions.

“Ecovative’s deep experience in mushrooms has enabled a high throughput discovery platform that is yielding solutions that are scaling through new biomanufacturing technology,” said Shally Shanker, founder and managing partner, AiiM Partners. “This will play a key role in solving (or accelerating solutions to) substantive problems like climate emissions and toxic material waste.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.