May 9, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

One month ago, MycoTechnology announced it had closed on an $85 million Series E led by a new investor – a group affiliated with the Oman Investment Authority (OIA).

That round brought total funding for the company to more than $200 million, and also included 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.

Expanding upon this investment, MycoTechnology and Oman Investment Authority (OIA) have announced a groundbreaking joint venture that will use locally-produced dates in the production of high-quality, mushroom-based protein. 

Funded 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.

Meanwhile, Oman is one of the world’s top producers of dates, growing about 400,000 tons per year. However, more than 50 percent of production is either wasted, or goes toward animal feed. This new joint venture is aiming to upcycle a significant portion of Oman’s excess dates, using their natural sugar content as a source of carbon to fuel the production of mushroom-based protein.

Not only will this partnership reduce food waste, it is expected by the partners to increase food security for Oman, and beyond. This wide-reaching potential was recently made clear in a new study published in the journal Nature that found that replacing only 20 percent of global consumption of traditional ruminant animal proteins with microbial proteins made from fungus could cut deforestation and reduce greenhouse gas emissions by 2050.

“MycoTechnology is excited to be co-operating with Oman Investment Authority to build this highly innovative food oasis in the desert,” said Alan Hahn, CEO, MycoTechnology. “It represents a breakthrough in the quest to bring food security to Oman and the wider region. This initiative will be transformative – and not just for the Middle East.”

“We are foraging for the future,” he added, “unlocking the ancient power of culinary mushrooms to feed the world’s growing population with a solution that’s been beneath our feet all along.”

This strategic joint venture between MycoTechnology and OIA aligns with Oman’s Oman Vision 2040 plan, which aims to attract modern technologies to the country. It also links OIA’s local expertise and public sector relationships with MycoTechnology’s cutting-edge food technology to transform the food supply landscape.

“In our international investments at OIA, we target localizing advanced modern technologies,” said Ibrahim Al Eisri, director of private equity, OIA. “Our partnership with Mycotechnology will deliver substantial local benefits as we pioneer the proteins of tomorrow. It will support our mission to enhance food security, diversify the Omani economy, and create well-paying jobs in an eco-friendly new sector.”

Al Eisri concluded, “This joint venture will be the foundation that enables Oman to foster a new generation of talent in the sphere of food technology, here and further afield.”

~ 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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