In a significant move for the Mycelium startup sector, German biotech company Infinite Roots (IR) has closed a $58 million Series B funding round, making it one of the largest investments in the technology in Europe to date. The round was led by Dr. Hans Riegel Holding (HRH), with support from the Europe Investment Council fund, REWE Group, Betagro Ventures, and existing investors including Clay Capital, FoodLabs, Redalpine, Simon Capital, and Happiness Capital.
Key Takeaway
Infinite Roots secures a $58 million Series B funding round, signaling a significant step for the Mycelium startup sector in Europe. The company plans to use the funding to drive commercial growth, expand production capacities, and invest in launch activities, aiming to define a new era of mushroom mycelium-based products.
The Funding Round and Plans for Growth
IR plans to use the new round to switch into commercial growth, expand its production capacities, and invest in launch activities. Dr. Mazen Rizk, Founder and CEO of Infinite Roots, expressed the company’s unique position to define a new era of mushroom mycelium-based products.
Understanding Mycelium and Its Potential
Mycelium, the “roots” of mushrooms, is the non-reproductive part of fungi. It can be turned into a variety of products, from cloth to construction materials, due to its ability to secrete enzymes that break down food and absorb nutrients.
Competition and Scaling Up
IR faces competition from well-funded companies such as Meati, Nature’s Fynd, Myco Technology, and Quorn. However, Rizk emphasized that the Series B round was generated because of the scaling up of the technology that the company has been able to achieve. IR is taking an asset-light approach to its facility and working with one of the bigger breweries in Germany to refurbish parts of the brewery for production.
Industrial-Scale Facilities and Future Outlook
Access to industrial-scale facilities is increasingly becoming the way forward for Mycelium companies. For instance, Meati Foods moved into full-scale production of its mycelium-based whole-food protein, launching a “Mega Ranch” in Colorado. It’s significant for Infinite Roots that it has signed up an industrial partner for its next phase.
