Kynda Raises €3M to Expand Production of its Mycoprotein Made From Upcycled Food Waste.

German food tech startup Kynda is making waves in the alternative protein space by transforming food industry byproducts into mycoprotein-based meat. Recently, the company secured €3 million in seed funding—led by Enjoy Ventures through its Invest-Impuls Scale fund—with additional support from Swiss climate tech investor Clima Now and German poultry giant PHW Group, bringing its total raised capital to €5.8 million. A second closing of the seed round is underway, with further commitments already in the pipeline.

Image courtesy: Kynda

Founded in 2019 by Franziskus Schnabel and CEO Daniel MacGowan, Kynda leverages submerged biomass fermentation to convert sidestreams such as soy, oat, and rice pulp into high-quality mycelium protein. Remarkably, the company’s fungal strain—compliant with EU novel foods regulations—produces mycoprotein in just 48 hours, a dramatic improvement over the industry standard of seven to ten days.

The resulting mycoprotein boasts a protein content of 44% on a dry matter basis and contains all nine essential amino acids. In addition to being low in fat and rich in fibre and vitamins, the product is allergen-free. These characteristics make it ideal not only for plant-based meat alternatives but also for hybrid products, dog food, and animal feed. According to Kynda, their mycoprotein production generates 700% fewer greenhouse gas emissions compared to pea protein—a staple used by industry leaders like Beyond Meat.

Kynda is set to expand its production at a new factory in Jelmstorf, near Hamburg, scheduled to open in Q2 2025. The facility spans 6,200 square meters with two production halls of 720 square meters each and features 30,000 litres of fermentation capacity—enough to produce 2,000 tonnes of mycelium protein annually. The strategic partnership with PHW Group is expected to boost this capacity further to 70,000 litres, enabling Kynda to meet the large-scale demands of its industrial clients.

The company’s innovative technology is attracting significant attention in the alternative protein sector. With competitors such as Meati, which raised $100 million in Series C funding last year, and Infinite Roots with its $58 million round, Kynda is positioned within a rapidly growing market. The broader investment landscape reflects this trend: while funding for plant-based and cultivated meat startups has declined, fermentation-based ventures have seen a 43% increase in financing in 2024.

As investors grow increasingly cautious about the long development timelines and regulatory hurdles associated with cultivated meat, fermentation and mycelium-based startups offer a nearer-term opportunity with clearer pathways to profitability. Kynda’s approach, which utilises readily available agricultural byproducts, not only reduces environmental impact but also promises a more cost-effective and scalable solution to meet global protein demands.