Ecovative, a pioneering mycelium technology company, has successfully secured $28 million in a growth equity round, putting the company at just over $145M raised over 17 years of mycelium technology development. This significant investment will fuel the expansion of its mycelium-based food product, MyBacon, and facilitate the introduction of new sustainable leather materials [1].
Strategic Funding for Multifaceted Growth
Since 2019, Ecovative has raised an impressive total of $145 million, underlining strong investor confidence in its innovative approach to sustainable materials. The company, known for brands such as MyForest Foods, Forager, Mushroom Packaging, and Grow.bio, plans to utilise this latest funding to drive expansion across multiple fronts.
Eben Bayer, Ecovative's founder and CEO, outlined the company's ambitious plans: "The capital will be used to expand MyBacon from 600 to thousands of stores through 2025, providing the necessary working capital to support that growth. We'll also be launching Forager products with our customers, while onboarding new capacity to scale through 2026 and 2027" [2].
AirMycelium Technology: The Core of Innovation
At the heart of Ecovative's success is its proprietary AirMycelium technology. This innovative platform allows the company to grow different strains of mushrooms for a variety of applications on an industrial scale. Ecovative's vertical farms can produce an astonishing three million square feet of material annually on just one acre of land.
The versatility of this technology has enabled Ecovative to develop a wide range of products, from food and foams to sustainable plastic and leather alternatives. The company is now leveraging this platform to produce MyBacon in the United States and eco-friendly materials for apparel, consumer goods, and accessories in Europe under the Forager brand.
AirLoom Hides: Revolutionising the Leather Industry
One of Ecovative's most exciting developments is the AirLoom hide, a leather-like material grown in just nine days with half the emissions of conventional leather. These hides are designed to integrate seamlessly into existing tannery infrastructure, offering leather tanneries an animal-free option that can help lower their environmental footprint while preserving centuries of craftsmanship.
The company plans to commercialise AirLoom hides for the 2025 season, with interest already expressed by major fashion brands including PVH (parent company of Calvin Klein and Tommy Hilfiger), Vivobarefoot, Veja, and Reformation.
MyBacon: Rapid Growth in Myelium-Based Meats
Ecovative's food brand, MyForest Foods, is experiencing remarkable success with its MyBacon product. According to Spins data, it is the fastest-growing plant-based meat brand in the northeast United States, selling three times as quickly as its competitors [3].
MyBacon, made from just mycelium, coconut oil, sugar, salt, and natural flavours, is currently available in over 600 retailers across both U.S. coasts, including Whole Foods Market, Good Eggs, Erewhon, and Berkeley Bowl. The company aims to expand its presence to thousands of stores by 2025.
To support this growth, Ecovative has already used part of its new funding to build a new packaging facility for MyBacon at its Green Island headquarters, tripling production capacity. Additionally, a new expanded manufacturing plant in Canada is set to bring an additional 1,000,000 pounds of product online by 2025.
Riding the Wave of Fermentation and Mycelium Investment
Ecovative's successful funding round comes amid growing venture capital interest in fermentation and mycelium technologies. While alternative protein startups saw overall funding decline by 44% last year, fermentation companies have already secured 90% of their 2023 total funding in just the first half of this year [4].
Bayer attributes this trend to the tangible benefits of mycelium-based products: "Investments in mycelium and fermentation are growing because we're delivering differentiated products with real benefits. What sets Ecovative apart is our AirMycelium technology, which is the only platform that connects these innovations with extremely good process economics" [2].
As Ecovative continues to innovate and expand, it's clear that mycelium technology is poised to play a significant role in the future of sustainable materials and food production. With its diverse product portfolio and robust funding, Ecovative is well-positioned to lead this biotech revolution.
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