Dealflow | June 13, 2023

Ecovative secures $30 million to produce fungi-based sustainable materials

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, June 13 — The strength and durability of mycelia, the threadlike root structure of mushrooms, have made mushrooms a favorite for alternative materials from faux leather to biodegradable packaging.

New York-based Ecovative, launched in 2007, is commercializing mycelium-based materials for fashion, apparel, automotive, food, packaging and construction. The biotech company partners with brands to grow and test mycelium materials. Its line of products include plant-based food and biodegradable textiles and packaging.

Food and fashion

Ecovative has raised $30 million in a new round led by Viking Global Investors, with participation from Standard Investments, FootPrint Coalition Ventures and AiiM Partners.

Half of the capital raised in the Series E round will be reinvested as Series A funding in MyForest Foods, an Ecovative subsidiary launched in 2020 that makes mycelium-based bacon. The funding will also support Forager, another Ecovative subsidiary that produces plastic-free and vegan leather and foams. Ecovative has raised $120 million to date.

Fungus pioneers

Mycelium’s co-founders Eben Bayer and Gavin McIntyre claim to have created the first mycelium-based materials as students 16 years ago. “Our goal is to hack capitalism to support Spaceship Earth: building factories that produce clean air, clean water, and healthy soil, while growing delightful materials that meet everyday needs and produce extraordinary profits,” said Bayer.