A recent funding round of $58 million for this European Mycelium startup signifies the technology's imminent breakthrough into significant developments.
Formerly known as Mushlabs, Infinite Roots (IR) is a German biotech company specializing in Mycelium, a material derived from fungi celebrated for its versatility in applications ranging from food to construction materials. In a noteworthy development for both IR and the emerging Mycelium startup sector, the company has successfully concluded a Series B funding round, securing $58 million. This investment ranks among the largest in Mycelium technology in Europe thus far.
Dr. Hans Riegel Holding (HRH), recognized as one of the holding companies of the confectionery group Haribo, led the funding round. Other contributors include the Europe Investment Council fund, REWE Group (a German tourism conglomerate), and Betagro Ventures from Hong Kong. Notably, existing investors such as Clay Capital, FoodLabs, Redalpine, Simon Capital, and Happiness Capital also participated. Before this round, IR had previously raised $10 million in a Series A funding.
The allocated funds from the Series B round are earmarked for transitioning into commercial growth, expanding production capacities, and investing in launch activities. Dr. Mazen Rizk, Founder and CEO of Infinite Roots, emphasized the company's unique position to shape a new era of mushroom mycelium-based products.
Mycelium, essentially the "roots" of mushrooms, constitutes the non-reproductive part of fungi. Its enzymatic properties enable the breakdown of surrounding food and nutrient absorption, paving the way for diverse applications, including cloth and construction materials.
While Infinite Roots faces competition from well-funded rivals such as Meati, Nature's Fynd, Myco Technology, and others, Dr. Rizk noted that the Series B round was propelled by the successful scaling up of the technology. The company adopts an asset-light approach by collaborating with existing facilities for ingredient production and partnering with a prominent brewery in Germany to repurpose parts of the brewery for its production space.
Dr. Rizk conveyed the company's distinct approach, stating, "We don’t want to mimic meat. We don’t want to create only meat alternatives. We want to create products based on Hey, they’re tasty and they’re healthy."
The trend among Mycelium companies to gain access to industrial-scale facilities is becoming increasingly evident. Meati Foods, for example, moved into full-scale production with a "Mega Ranch" in Colorado, financed by a substantial Series C round. This facility aims to produce over 45 million pounds of Mycelium-based whole-food protein.
Infinite Roots recognizes the significance of securing an industrial partner for its next phase, aligning with the evolving landscape of Mycelian companies requiring access to large-scale facilities for their advancements.
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