The demand for sustainable, plant-based protein is on the rise, prompting companies to seek alternatives to meet consumer expectations. MycoTechnology has created a food processing platform that transforms agricultural materials into functional ingredients, attracting significant investments along the way. The total funding for the company has now reached $120 million. This latest funding round marks the third participation of Kellogg’s venture capital arm, Eighteen94 Capital, following its initial investment of $35 million in the fall of 2017 and a subsequent $30 million round last year. Company leadership has expressed that MycoTechnology’s commitment to developing a sustainable protein source and its innovative mushroom fermentation platform are key factors driving their ongoing support.
While pea protein and soy remain popular choices in the plant-based market, mushrooms are emerging as a promising source of nutrients and protein for manufacturers. According to Transparency Market Research, the global market for mushroom applications is expected to surge from $34.1 billion in 2015 to $69.3 billion by the end of 2024. MycoTechnology asserts that its PureTaste ingredient—characterized by low calories, fat, and carbohydrates, along with high levels of vitamins and minerals—can be incorporated into baked goods and cereals. They also claim it can enhance the juiciness of meats due to its water and oil retention properties and provide a smooth mouthfeel in dairy products. If taste tests confirm these assertions, major consumer packaged goods (CPG) companies that have invested in this technology may be eager to integrate it into their manufacturing processes.
In addition to producing plant-based protein, MycoTechnology’s ClearTaste ingredient has demonstrated the ability to reduce the salt content in lunch meats without altering the flavor. If this capability is applied to other typically salty products such as soups, sauces, and frozen meals, more CPG companies are likely to explore its potential. Investment partners of the company may also contemplate launching products utilizing these ingredients as they strive to meet the FDA’s voluntary sodium-reduction guidelines. However, Hahn mentioned to Food Navigator that ClearTaste’s primary application is in sugar reduction strategies, as its off-taste masking solution can mitigate the metallic aftertaste associated with stevia.
The Colorado-based company is making significant strides in the functional ingredients sector, empowering various companies to create cleaner labels and more functional solutions. While many are focusing on ingredients that reduce salt and sugar, few are addressing all these challenges simultaneously, especially with fungi. This unique approach distinguishes MycoTechnology from its competitors, attracting the interest of prominent investors. The company’s commitment to mycology and mushroom-based solutions is likely to capture public attention as it prepares for its IPO in the next two years.
Although IPOs are often criticized for diminishing a company’s autonomy and creativity in favor of shareholder interests, Hahn stated to Food Navigator that going public would enable the company to better control its mission and facilitate the broad launch of new products in development. Furthermore, the integration of supplements like calcium citrate, vitamin D3, magnesium hydroxide, and zinc sulfate tablets into their offerings could enhance their appeal, providing consumers with additional health benefits alongside their innovative ingredients. As MycoTechnology continues to navigate the market, its multifaceted approach to sustainability and nutrition is poised to make a lasting impact.