A European Mycelium startup, formerly known as Mushlabs but now rebranded as Infinite Roots (IR), has just closed a massive $58 million Series B funding round. The company, based in Germany, specializes in Mycelium – the material derived from fungi that has been garnering attention for its potential in various industries including food and construction materials. With this latest round of funding, IR is set to make a big splash in the growing Mycelium startup sector.
The significant investment was led by Dr. Hans Riegel Holding (HRH), a holding company of the beloved confectionery group Haribo. Other notable contributors include the Europe Investment Council fund, REWE Group, and Betagro Ventures. Existing investors such as Clay Capital, FoodLabs, Redalpine, Simon Capital, and Happiness Capital also participated. Prior to this round, IR had already raised $10 million in Series A funding.
According to Dr. Mazen Rizk, Founder and CEO of Infinite Roots, the company is uniquely positioned to lead the way in developing mushroom mycelium-based products. Mycelium, which is essentially the root of mushrooms, is the part of fungi that breaks down food and absorbs nutrients. This makes it a versatile material that can be used for a variety of purposes, from cloth to construction materials.
“We’re in a unique position to define a new era of mushroom mycelium-based products,” says Rizk.
However, IR is not without its competition – Meati in the US has raised $274.5 million, Nature’s Fynd has raised $509.6 million, Myco Technology has raised $207.6 million, and Enough in the UK has raised $121.7 million. Even well-known brands like Quorn are exploring the use of mushroom and mycelium products. In fact, just this month, a biomaterials company called Sqim (formerly known as Mogu SRL) closed a $12 million funding round, indicating the increasing interest in mycelium-based technologies.
Sqim, which uses fermentation, is focusing on two industries: creating wall, floor, and acoustic treatments, and developing animal-free alternatives for luxury fashion and automotive industries.
However, Rizk is confident in IR’s potential and the latest funding round is proof of that. He explains that the company is taking a unique approach by utilizing existing facilities for production and even repurposing parts of a large brewery in Germany for its operations. This not only reduces costs but also allows for the use of brewery waste as a production hub. Rizk adds, “We don’t want to mimic meat. We don’t want to create only meat alternatives. We want to create products that are not only tasty but also promote a healthy lifestyle.”
“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,” says Rizk.
In the rapidly growing world of mycelium-based companies, having access to industrial-scale facilities is becoming increasingly important. For example, last year, Meati Foods invested $150 million for a Series C round and an additional $22 million for a “Mega Ranch” in Colorado for full-scale production of their mycelium-based whole-food protein. The facility is expected to produce over 45 million pounds of product.
That’s why it’s significant that IR has already secured an industrial partner for its next phase of growth. With this new round of funding, the company is ready to take big strides towards its goal of becoming a major player in the mycelium startup sector.
