A Denver-based startup using mushrooms to make healthier and more flavorful food has closed a $39 million Series D that takes its funding total north of $100 million.
MycoTechnology closed its Series D round of financing Thursday at $39 million, co-led by Greenleaf Foods, SPC, S2G Ventures and Evolution Partners. Rich Products Ventures, Tyson Ventures, Continental Grain, Middleland Capital, Bunge Ventures, Seventure Partners, Cibus Investments Limited and Kellogg's eighteen94 Capital investment arm participated in the round.
This investment comes after the company raised $30 million in January 2019. Since its founding in 2013, MycoTechnology has brought in $120 million in outside funding.
MycoTechnology has found inventive ways to use mushrooms to reach desired tastes and nutritional targets in food. The company’s flagship product, ClearTaste, is derived from mushroom extract and acts as a shield for your tongue, temporarily blocking bitter tastes. By blocking bitter tastes, sugar becomes less of a need as a food ingredient for companies.
"We do not innovate for the sake of innovating. We create products that solve the biggest challenges in the food industry, like creating great tasting products without excessive sugar, salt, or fat and doing so in a more sustainable way," said Alan Hahn, CEO of MycoTechnology, in a statement. "I believe this is what attracted our investors to look closely at our company, and when they saw the many ways that mushroom fermentation can truly transform the food industry for the better, they decided to invest, even during challenging times."
The company currently has 93 employees and will use this round to accelerate new product development and innovation in the food space.
"The additional funding will help bring our forward-thinking vision to reality," Hahn added. "With many game changing products currently under development, the funds will help prepare for new product introductions that truly have the potential to change the food industry landscape and bring never-before-seen ingredients to the market."
The company's hiring plans were delayed due to Covid-19, company spokesperson Jessie Booth said, but this funding will allow MycoTechnology to get back on track. The company didn't offer any specific hiring plans.
