AURORA, COLO. — MycoTechnology, Inc., an organic food technology company that uses mushrooms to create functional ingredients for the food and beverage industry, has closed a $35 million Series B round of financing with a number of food investors, including Kellogg Co.’s venture capital fund, eighteen94 capital.
|Simon Burton, managing director of eighteen94 capital
“MycoTechnology is doing important work to ensure that a sustainable, edible protein source is more widely available to consumers,” said Simon Burton, managing director of eighteen94 capital. “They are committed to addressing consumer demand for a great-tasting, protein-rich product and we’re very excited to partner with them.”
Founded in 2013, MycoTechnology utilizes mushroom fermentation to “solve the biggest challenges facing the food and beverage industry,” the company said. Its first product, ClearTaste, is a certified organic bitter blocker that helps companies reduce sugar content in their products. MycoTechnology’s most recent product, PureTaste, is a complete, digestible, non-G.M.O., vegan mushroom protein made from Shiitake mushrooms that has a slight cereal or nutty taste, MycoTechnology said. It is low in calories, fat and carbohydrates and high in vitamins and minerals.
|Alan Hahn, co-founder and c.e.o. of MycoTechnology
“We are rapidly approaching a time where we will be unable to support the population with enough protein to sustain life,” said Alan Hahn, co-founder and chief executive officer of MycoTechnology. “Our discovery and commercialization of PureTaste protein solves the challenges of feeding an exponentially growing population with a highly sustainable protein source but does not compromise on taste, which is the No. 1 challenge with consumer acceptance. Proteins with high concentrations of amino acids tend to have a bitter taste which has seriously limited the adoption of alternative proteins. However, with PureTaste Protein we have solved this challenge, and the taste is great.”
MycoTechnology plans to use a portion of the funds to build a commercial production facility in Aurora for its PureTaste product. The planned commercial facility initially will be able to produce 4,000 tonnes of PureTaste per year. The Aurora facility will utilize large fermentation tanks that will allow PureTaste to be grown vertically, MycoTechnology said, which will reduce land use. The company also will employ water and energy recapturing systems to ensure sustainability.
|Sanjeev Krishnan, managing director of S2G Capital
“We are excited about this investment in MycoTechnology, because not only do they make an innovative, non-animal protein source that also has a clean flavor profile, but their process is highly sustainable,” said Sanjeev Krishnan, managing director of S2G Capital, which led the funding round.MycoTechnology’s Series B funding round was led by S2G Capital with co-leads Bunge Ventures Ltd. and Emerson Collective. Additional investors include eighteen94 capital, Health For Life Capital / Seventure Partners, Middleland Capital, Tao Capital Partners, Continental Grain, GreatPoint Ventures, Closed Loop Capital and Windy City, L.L.C.