In the dynamic realm of Mycelium-based innovation, a major player, formerly known as Mushlabs and now rebranded as Infinite Roots, stands out. This German biotech company has been exploring the vast potential of Mycelium – a versatile material derived from fungi with applications ranging from food to construction. In a groundbreaking move for both Infinite Roots and the growing Mycelium startup sector, the company has successfully closed a substantial $58 million Series B funding round, marking one of the largest investments in Mycelium technology in Europe to date.
Dr. Hans Riegel Holding, one of the two holding companies of the globally recognized confectionery group Haribo, took the lead in this Series B round. Additional support came from the Europe Investment Council fund, German tourism conglomerate REWE Group, and Betagro Ventures from Hong Kong. Notably, existing investors such as Clay Capital, FoodLabs, Redalpine, Simon Capital, and Happiness Capital continued their support, reflecting confidence in Infinite Roots' trajectory. Worth noting is that prior to this, the company had secured a Series A funding of $10 million.
Dr. Mazen Rizk, Founder and CEO of Infinite Roots, recently shared the company's vision of ushering in a new era of mushroom mycelium-based products. Mycelium, the non-reproductive part of fungi known as the "roots" of mushrooms, offers transformative potential, enabling the creation of diverse products from textiles to construction materials.
While the prospects are promising, Infinite Roots faces robust competition from well-funded counterparts. Meati in the US, Nature's Fynd, Myco Technology, and Enough in the UK have all secured substantial funding for their Mycelium-based ventures. Established players like Quorn are also actively involved in developing mushroom and Mycelium products.
Acknowledging the competitive landscape, Dr. Rizk emphasized that the Series B funding underscores Infinite Roots' successful scaling up of technology. The company adopts a two-fold strategy, leveraging an asset-light approach by collaborating with existing facilities for ingredient production. Additionally, they are partnering with a major brewery in Germany to repurpose parts of the brewery for their own production space, utilizing brewery capacity and waste for production.
Investors are clearly excited, buoyed by the company's commitment to innovation. Dr. Rizk stated, "We don't want to mimic meat. We don't want to create only meat alternatives. We want to create products that are tasty and healthy."
As the landscape evolves, it is evident that industrial-scale facilities will be integral to the future of Mycelium-based companies. Significantly, Infinite Roots has secured an industrial partner for its next phase, marking a crucial milestone in its transformative journey. In the world of fungi-based research and businesses, the anticipation is palpable for the impact that Infinite Roots will make on the Mycelium landscape.
[image credits: Infinite Roots]