Colorado-based mushroom-focused food tech startup MycoTechnology announced it has closed on a Series C backed by some of the top names in food tech investment.
The $30 million round was co-led by S2G Ventures Fund II, Middleland MT Holdings, ADM Capital’s Cibus Fund, and TML-Invest S.à r.l. Other participating investors include Tysons Ventures, Bunge Ventures Limited, Continental Grain Company, Eighteen94 Capital, LLC (Kellogg’s), and DNS-Hiitake LLC.
“MycoTechnology’s innovative organic technology addresses growing consumer demand for products focused on health and sustainability, and Kellogg’s is excited to continue to partner with the company in a number of ways,” said Gary Pilnick, vice chairman of Kellogg’s.
Founded in 2013 Dr. Brooks Kelly, Jim Langan, Peter Lubar, and Alan Hahn, MycoTechnology has pioneered the development of a variety of innovative organic food processing platform using mushroom roots (mycelium). Although the full range of possibilities for their technology is not yet known, the company has used their platform to solve some of the toughest challenges faced by the food and beverage industries.
Through mushroom fermentation technology, MycoTechnology’s flagship product, ClearTaste®, is the world’s first organic bitter blocker, which helps companies reduce the sugar content of their products by blocking bitterness. Additional testing has revealed that ClearTaste® is also able to block the metallic aftertaste associated with potassium chloride, a common salt replacer. Their second product, PureTaste®, is solving how we will feed an exponentially growing population with a sustainable, functional, and nutritional plant-based protein.
“MycoTechnology is driving the growth of a new and disruptive product range, and we are thrilled to co-lead this investment round and fund the next stages of development,” said Alastair Cooper, senior investment director with ADM Capital Cibus Fund.
The flexibility and potential of this technology, particularly in connection with its success in improving the taste profile of stevia, drew the attention of investors in 2015 when MycoTechnology announced the closing of a $9.2 million Series A, which was led by led by S2G Ventures, and including Seventure Partners, and Middleland Capital.
This round was followed a year later by the closing of an oversubscribed $42 million Series B co-led by S2G, Bunge Ventures, and Emerson Collective. Other investors included in the round are Health for Life Capital; Seventure Partners; Middleland Capital; Tao Capital Partners; Kellogg’s venture fund, Eighteen94 Capital; Continental Grain; GreatPoint Ventures; Closed Loop Capital; and Windy City LLC, Ajinomoto Co. In. and Continental Grain Company.
The $30 million raised through this Series C gives MycoTechnology the ability to explore new innovative ways to meet consumer demands through the development of new ingredients. With this capital, the company will expand and accelerate its R&D project execution, and further expand its team for the pursuit of current and future projects.
“We are excited about the strategic and customer validation of this round,” said Sanjeev Krishnan, S2G Ventures. “Myco has proven itself to be a platform and a products company. Investors in this round represent over $100 billion in revenues and market caps. Myco’s platform is proven to solve many of the food industry problems as it tries to feed the changing consumer preferences.”
Looking to the future, MycoTechnology CEO Alan Hahn told Food Navigator that following this round, which brought total funding to the company to more than $80 million, plans for the company include going public through an IPO, tentatively set for 2021.
“I think we have a great story for the public and I think it will be well received,” said Hahn.
~Lynda Kiernan