May 9, 2024

photo credit: Meati Foods

By Lynda Kiernan-Stone, Global AgInvesting Media

Meati Foods, a Public Benefit Corporation and the developer of products that feature the superfood MushroomRoot™ with the goal of giving consumers access to high-quality protein that is healthy and sustainable, has raised over $100 million in C-1 round funding led by Grosvenor Food & AgTech.

The round also saw participation from returning investors Prelude Ventures, BOND, Revolution Growth, and Congruent, with Mark Cupta from Prelude Ventures and Katrin Burt from Grosvenor Food & AgTech joining as new members of Meati’s Board of Directors. 

“We are excited to continue our partnership with Meati,” said Katrin Burt, managing partner, Grosvenor Food & AgTech. “Meati produces delicious, nutritious and affordable protein and our firm is proud to back this category-leading product, talented team and mission to make MushroomRoot a global food staple.”

A Mycelium Primer

Mycelium, or the roots of mushrooms, are making a name for themselves and taking pole position in the food tech space. 

One of the clearest and most interesting explanations I’ve found of how mycelium intersects with the process of fermentation to create untold numbers of end-products was the article The Mycelium Revolution in Upon Us, by Eben Bayer, CEO and co-founder of Ecovative. 

Basically, Bayer explained that fermentation, which has been around for 10,000 years (think beer, bread, etc.), is a molecular process through which living cells transform sugar or starch into more complex molecules or chemicals.

In 1978, Arthur Riggs and Keiichi Itakura made one of the most powerful discoveries in human history when they determined that single-celled bacteria and yeast are micro-factories that can be utilized to create novel compounds, enabling them to use liquid fermentation to make the first biosynthetic insulin using a base of E. coli. 

Over the ensuing decades, researchers have worked to advance the science to the point where they can reprogram single-celled organisms, such as yeast, bacteria, and algae, to make foods, life-saving drugs, and fuel such as ethanol.

Technically, Bayer explained, mycelium acts as a type of yeast. But unlike yeast, mycelium is multicellular, enabling it to grow “macro-sized structures”, by taking sugar, or wood, or plant waste and breaking them down using enzymes to create microscopic fibers, or the building blocks of mushrooms. 

It is at this point (before a mushroom begins to grow) where humans can step in and redirect the microscopic fibers to build predictable alternate structures by precisely controlling factors such as temperature, air flow, humidity, and CO2 levels.

Of this discovery and achievement, Bayer stated, “Directing the growth of mushroom fibers may not sound like a big deal, but this evolution in biofabrication stands to transform the way we manufacture, consume, and live.”

At the spear point of this evolution is Meati. Founded in 2017, Meati Foods is dedicated to making MushroomRoot™ an everyday staple beginning with its Eat Meati product line. Of which, three offerings: the Classic cutlet, the Classic steak, and the Carne Asada steaks are now available in 2,000 Kroger Family Stores, bringing the number of retailers carrying Meati products from just six to more than 6,000 nationwide in just over a year.

Up to 40 percent of Meati sales are from consumers purchasing animal-free protein for the first time, with repurchase rates that are as high as 60 percent. Consistently among the top performers in the animal-free protein category, Meati’s products are also available at Super Target, Whole Foods Market, Sprouts Farmers Market, Meijer and Wegmans locations. 

“Meati is on a mission to make MushroomRoot™ the undisputed leader of the center of the plate. The backing of our investors, the belief by retailers nationwide, the love from our customers and the commitment from our employees leave no doubt in my mind that we’re on the right path to get there,” said Phil Graves, CEO, Meati.

Upon the closing of this latest funding round, Meati co-founder and chief innovation officer Tyler Huggins plans to transition to an advisory role in support of the company’s continued growth. 

“When Justin Whiteley and I founded Meati, we set out to harness the power of nature to make awesome products that were a positive force for good in the world,” said Huggins. “It’s inspiring to see how far we’ve come in a short period of time, and I’m ready to pass the day-to-day running of the company to Phil Graves and the leadership team to take it to the next level.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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