June 1, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

I’m amazed on a daily basis by the ingenuity and creativity presented by food tech entrepreneurs as they work to address some of the most pressing challenges in today’s food system. And it’s good to see when investors step in to support the advancement and growth of food technologies that have the power of transformation. 

The Engine, a venture firm spun out from MIT, has led an oversubscribed $2 million pre-Seed round of funding for Hyfé Foods, a sustainable food tech startup that produces low-carb, high-protein mycelium flour from wasted sugar water from food and beverage manufacturers. 

Other participants in the round include Blue Horizon, Caffeinated Capital, Supply Change Capital, Lifely, Gaingels, Hack Ventures, along with angel investors including restaurateurs and other founders. 

Additionally, Hyfé Foods has been awarded a Department of Energy (DOE) grant through the Chain Reaction Innovations Accelerator at Argonne National Labs.

Based in Chicago and co-founded in 2021 by a pair of former LanzaTech and ExxonMobil engineers, Michelle Ruiz and Andrea Schoen, Hyfé’s production model recognizes that our current food system accounts for 70 percent of all fresh water usage and 25 percent of all global greenhouse gas emissions.

The startup had developed a carbon neutral method of producing affordable, high-protein, low-carb, and allergen-free flour products. Not only is their technology versatile among supply chains and environmental conditions, it also conserves water by reducing the water intensity of fermentation and by diverting these feedstocks from wastewater treatment facilities that generate large volumes of methane, a greenhouse gas that is 84-86 times more detrimental than carbon dioxide.

“A bowl of Hyfé pasta has as much protein as a chicken breast, is high in fiber, and has no refined carbs,” said Michelle Ruiz, co-founder and CEO, Hyfé Foods.

“We’re on a mission to make food better for you as well as better for the planet. Hyfé’s mycelium flour tastes and acts just like wheat flour, enabling people to eat the foods they love without negative health impacts,” continued Ruiz. “We are leveraging biotechnology to produce this ingredient that is carbon neutral, at scale, and at a very low cost.”

Furthermore, not only does Hyfé have environmental and personal benefits, this technology unlocks an affordable way to ensure food security in the face of global supply chain disruptions. Together, Russia and Ukraine export more than 25 percent of the world’s total wheat supply. And as tensions continue to mount, with exports of Ukrainian wheat still being blockaded, the UN has issued a warning that Russia-driven food shortages will mean cereal grain and corn will run out in 2023.

Compounding the severity of the situation, the U.S. Department of Agriculture (USDA) has forecast that global wheat production will likely fall this year – representing the first time the global crop has declined in four years. 

The ability to locally produce Hyfé flour will decouple this critical food element from agriculture – making it possible to produce in remote, or conflicted regions that for any number of reasons are poorly suited to agriculture.

“In the face of supply chain and climate uncertainty, regionalized production of healthy food is vital to a circular economy and more importantly, ensuring global food security. Hyfé stands out because it operates at the intersection of climate and health and uniquely delivers a cost-effective solution,” said Katie Rae, CEO and managing partner, The Engine.

Hyfé’s co-founders also bring impressive expertise and backgrounds to the table. Ruiz, an immigrant from Ecuador, is a Carnegie Mellon chemical engineer with more than a decade of manufacturing experience, and bioengineering expertise in wastewater treatment. Schoen is a Northwestern and University of Wisconsin bioengineer and registered patent agent who supported the startup of the world’s first commercial-scale gas fermentation plant. 

“We were impressed with Michelle and Andrea’s vision for discovering a way to produce nutritious food at scale without the need for agriculture, fresh water, or much space,” said Rae. “The diversity of thinking, passion for the mission, drive and excellence of execution positions them to succeed.”

~ 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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