Matr Foods Secures €40M to Transform Mycelium Into Industrial-Scale Meat Alternatives
- Gauri Khanna
- 13 hours ago
- 3 min read
Too long to read? Go for the highlights below.
Copenhagen-based Matr Foods has raised €40M in total funding t(he largest amount secured by a Danish food tech startup) to build a commercial factory capable of producing 4,000 tonnes of mycelium protein annually by 2027.
The company's clean-label products, made through solid-state fermentation of upcycled vegetables and legumes with fungi, have sold out every month in 2024 and 2025, bucking the downturn seen in plant-based meat sales across the US and UK.
The €20M Series A round, co-led by Novo Holdings and the Export and Investment Fund of Denmark, signals renewed investor confidence in alternative proteins after two years of declining investment in the sector.
From Pilot Plant to Industrial Production
Matr Foods has secured €20 million in Series A financing, building upon the €20 million debt investment it received from the European Investment Bank in 2024. The combined €40 million will fund construction of a commercial facility in Ansager, Denmark, enabling the company to scale production from 30 tonnes to 4,000 tonnes annually whilst creating approximately 60 jobs.
The new facility, set to become operational in 2027, represents a turning point for the four-year-old company. CEO Randi Wahlsten, a former executive at Danish dairy giant Arla, established Matr Foods in 2021 alongside Noma co-founder Claus Meyer and partners Morten Sommera and Rasmus Toft-Kehler. The company's current pilot site in Nordhavn, Copenhagen, will cease operations once the Ansager plant launches, though research and development facilities will remain in the capital.
The Science Behind the Product
Matr Foods employs solid-state fermentation to produce its meat analogues, inoculating beetroots, potatoes, lupins, peas, and oats, with fungi spores. The process relies on hyphae, tiny roots that comprise mycelium, which break down nutrients in the mixture. This breakdown releases amino acids and starches that deliver flavour depth and enhance browning during cooking, whilst the mycelium binds ingredients together to create texture.
The resulting products contain 8.5 grammes of protein, 2.5 grammes of fat (0.5 grammes saturated), and 10 grammes of dietary fibre per 100 grammes. With an amino acid profile comparable to meat and a carbon footprint of 1.6 kilogrammes of CO2 equivalent per kilogramme, 94 per cent lower than beef—the products appeal to environmentally conscious consumers. Matr Foods adds only beetroot juice, salt, thyme, and garlic powder to its mince and burger offerings.
Counter-Trend Success
Whilst plant-based meat sales have declined in markets such as the United States and the United Kingdom, Matr Foods reports consistent growth. Wahlsten attributes this divergence to changing consumer priorities: people are asking different questions and seeking products made from recognisable ingredients with minimal processing.
The company has sold out its entire production capacity every month throughout 2024 and 2025. Demand from existing and new customers continues to increase, constrained only by the pilot facility's limited output. Matr Foods products are currently available at Danish restaurant chains including Gasoline Grill, Rørt, and Gao Dumpling, as well as all Sticks'n'Sushi locations across Denmark, Germany, and the United Kingdom.
Investment Climate Shifts
The funding round arrives during a period of recovery for alternative protein investment, following a dramatic slowdown over the past two years. Thomas Grotkjær, a partner at Novo Holdings' Planetary Health Investments team, attributes the downturn to disappointment and insufficient patience. He notes that changing food patterns requires time—even his own dietary shift towards sustainability took a decade or two to materialise.
Novo Holdings' investment criteria focus on three elements: biotechnology, gastronomy, and scalability. Grotkjær emphasises that taste drives demand, biotechnology provides the scientific foundation for their investment logic, and scalability determines whether laboratory technology can succeed commercially.
The Matr Foods raise forms part of a broader third-quarter trend, joining funding rounds such as The Better Meat Co's $31 million, Nxtfood's $58 million, The Protein Brewery's $35 million, and Revyve's $28 million. Over the next 12 months, Matr Foods will focus on scaling operations, advancing internationalisation efforts across brand, organisation, customers, and production, whilst building commercial capabilities in Germany and Switzerland.
Wahlsten remains confident about the sector's trajectory, noting that the problems alternative proteins aim to solve remain too significant to abandon.