mycoworks Raises $125M to Scale Fungal Leather Production

MycoWorks Secures $125 Million to Expand Fungal Biomaterial Production

MycoWorks, a pioneering company in the development of leather alternatives, has successfully closed a $125 million Series C funding round. This investment will be strategically allocated to the construction of a new production facility dedicated to scaling the manufacturing of its flagship product, Reishi.

A Unique Approach to Biomaterial Engineering

CEO Matt Scullin emphasizes that his company’s approach to fabric creation differs significantly from its competitors. He highlights the Fine Mycelium process as a groundbreaking “biotechnology platform” capable of engineering mycelium to produce bespoke, high-specification luxury materials.

The market for alternative materials is rapidly evolving, with numerous companies exploring mycelium’s potential. However, Scullin points out that many current methods involve embedding fibers within plastics, resulting in materials of inferior quality, akin to “pleather.”

Growing Trend of Fungal and Plant-Based Fabrics

Founded in 2013 by Philip Ross and Sophia Wang, MycoWorks is at the forefront of a burgeoning trend. Numerous companies are now utilizing fungi and other plant-derived resources to create innovative fabrics for the fashion industry.

Previous coverage in 2020, following a $45 million funding round, identified companies like Bolt Threads (utilizing mushrooms), Ananas Anam (working with pineapple fibers), and Desserto (producing cactus leather) as key players in this space.

Beyond Fashion: Fungi in Food Technology

The application of fungi-based technology extends beyond textiles. Companies like Nature’s Fynd, which secured $350 million in Series C funding in 2021, have developed Fy, a versatile vegan protein suitable for various food applications.

Atlast Food is also innovating in the food sector, creating meat alternatives from gourmet mushroom mycelium. MycoTechnology, employing fermentation techniques, produces mushroom extracts that enhance the flavor profiles of other foods, having raised over $120 million in a Series D round in 2020.

Investment Details and Strategic Partnerships

The Series C funding round was spearheaded by Prime Movers Lab, with significant participation from new investors including SK Networks and Mirabaud Lifestyle Impact and Innovation Fund. These investors joined a consortium of existing and new stakeholders, bringing the company’s total funding to $187 million.

MycoWorks established its initial partnership with Hermès in early 2021 and currently maintains contracts with a diverse portfolio of prominent global luxury brands. Scullin indicates that the company is likely collaborating with most major luxury brands.

Scaling for Mass Production

While initially focused on the luxury market, MycoWorks intends to expand its production capacity to enable the creation of products across a wider range of price points. This funding will facilitate this transition, according to Scullin.

New Production Facility and Scalability

The new production plant will be located in Union, South Carolina, building upon the success of a pilot facility in Emeryville, California. The California plant successfully validated the tray-based process and demonstrated the scalability of the Fine Mycelium process, achieving a milestone of 10,000 trays processed.

The South Carolina facility is projected to be operational within the next 12 months, with an initial production capacity of several million square feet of Fine Mycelium annually.

Investing in Growth and Innovation

To capitalize on the growing consumer demand for sustainable products, Scullin plans to allocate the funding towards team expansion, research and development, and further technological advancements. The company has received a substantial number of inquiries from brands eager to utilize Fine Mycelium.

Scullin estimates the annual sales volume of leather products at $150 billion, representing a significant market opportunity, particularly given the increasing consumer preference for sustainable alternatives.

Expertise in Biotechnology and Manufacturing

Scullin explained that Prime Movers Lab and the other investors were selected due to their shared expertise in biotechnology and manufacturing scale-up – capabilities crucial for the company’s current needs.

“MycoWorks’ achievement with its Fine Mycelium platform represents not merely an advancement, but a complete transformation for industries poised for change,” stated David Siminoff, general partner at Prime Movers Lab. “This opportunity is substantial, and we are confident that the company’s unparalleled product quality, combined with its proprietary scalable manufacturing process, positions it as a leader in the new materials revolution.”