April 4, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

GAI News has been writing about MycoTechnology since its $9.2 million Series A in 2015 led by S2G Ventures with participation from Middleland Capital and Seventure Partners. Since that time, the company has gone on to greatly expand its investor base without losing valuation. 

The company’s latest news is that it has successfully completed its single largest funding round in its history – an $85 million Series E led by a new investor – a group affiliated with the Oman Investment Authority (OIA).

This round, which brought total funding to-date to more than $200 million, also included new investors Nourish Ventures (the venture capital group of Griffith Foods), Rage Capital Alphacy Investment, and Siddhi Capital. Participating returning investors were S2G Ventures, Tyson Ventures, Continental Grain Company, Bunge Ventures, Maple Leaf Foods, Evolution VC Partners, and Gaingels.

Founded in 2013, Colorado-based MycoTechnology has pioneered the development of a variety of innovative organic food processing platforms using the natural power of mushroom roots (mycelium). Although the full range of possibilities for their technology is still being discovered, the company has used their technology to solve some of the toughest challenges faced by the food and beverage industries.

The company explains on its website, “In nature, mushroom mycelium act as the clean-up crew for the forest – pulling toxins out of the soil and giving back nutrients to plants. We harness this natural phenomenon through fermentation to eliminate ingredient drawbacks, boost functionality and deliver greater nutrition to foods, beverages and supplement products.”

By combining established processes with cutting-edge science, MycoTechnology’s scientists, innovators, and culinary experts apply a proprietary mushroom fermentation process on mycelia, the invisible “root system” of mushrooms, to develop a range of solutions that address sugar reduction, sustainable protein, nutrient density, and more.

For example, through mushroom fermentation technology, MycoTechnology’s flagship product, ClearTaste®, was the world’s first organic bitter blocker, which helped companies reduce the sugar content of their products by blocking bitterness. Additional testing revealed that ClearTaste® was also able to block the metallic aftertaste associated with potassium chloride, a common salt replacer. Their second product, PureTaste®, solved how to feed an exponentially growing population with a sustainable, functional, and nutritional plant-based protein.

The company has since gone on to establish a legacy of commercial success, having partnered with major and emerging brands to deliver superior foods, beverages, and supplements. Its current portfolio includes FermentIQ™ protein, a line of what the company calls “indulgent yet guilt-free plant-based protein products”, and ClearIQ flavor, a range of clean-label flavor modulation tools that facilitate sugar and salt reduction and the creation of more nutrient dense products.

One major brand that has invested in and partnered with MycoTechnology is Kellogg’s, through its venture unit Eighteen94. In 2019, upon participating in a $30 million Series C for the company, Kellogg’s Vice Chairman Gary Pilnick commented,  “The investment coming from noteworthy companies in the industry reveals the significant impact MycoTechnology is making in the rapidly changing food ingredient space. MycoTechnology is at the forefront of innovation with their cutting-edge mushroom fermentation platform, and big names are recognizing the potential and enthusiastically getting on board.”

The capital raised through this round will enable MycoTechnology to continue to capitalize on its proprietary fermentation platform, and continue its work impacting food and nutrition on a global scale, with its eye turned toward expansion in Europe, Asia, and the Middle East.

 “This fundraise is a validation of the potential of our breakthrough proposition and next-generation ingredients,” said Alan Hahn, CEO and co-founder, MycoTechnology. “It will be a catalyst to accelerate our growth further and faster. The investment will power the imagination of our incredible team, driving our plans to add more new-to-the-world ingredients from the fungal kingdom. We have big things coming!”

– Lynda Kiernan-Stone 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com. 

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