Swedish FoodTech startup Mycorena has closed the largest-ever Nordic Series A funding round and one of the most significant in all of Europe, in the alternative protein space. The company aims to revolutionize the production and consumption of protein with Promyc, a fungi-based alternative to inferior animal- and plant-based options. Funds will primarily be used to bring Promyc from a demonstration-scale innovation with great potential to a commercialized high-value product with great impact.
In the last decade, the interest in plant-based proteins has increased dramatically. Societal awareness of the negative impacts of industrial animal protein manufacturing has been a key driver. More recently, fungi-based food products have been cemented as the next leap in the advancement of new protein sources. Investments in space have increased dramatically as the fungi subsector gears up for commercialization. With a completed Series A round of €24M, Mycorena assertively places itself at the forefront of this movement.
“This milestone is an embodiment of the exponential progress we've made in the last year. In one go, we have raised more capital than through all previous financing rounds combined, and our total funding has more than tripled. The trust placed in Mycorena by existing and new investors is a confirmation of a job well done, a strong motivator to never settle, and a spur to achieve even more in the future!”, says Anton Johansson, Chief Financial Officer.
Sourced primarily from equity but also from debt secured for the construction of a first-of-its-kind production plant, the Series A pushes the company’s total funding beyond the €35M threshold. The successful fundraise welcomes several new investors, with a significant portion of existing shareholders also doubling down on their commitments to Mycorena’s vision of a fungi-based future. All in record time, as just over six months, have passed since the recent close of a €7.7M round in 2021.
These recent funding successes are reflective of Mycorena’s recent period of exponential growth. Having launched Promyc only in 2019, the company established its demonstration plant and new headquarters in 2021. Named the Mycorena Innovation and Development Center (MIND), it is the largest facility of its kind in all of Europe and has enabled rapid scaleup and growth in business opportunities, IP generation, and product development. Now is the time to begin commercialization.
“Thanks to our recent rapid growth and the expansion of the Mycorena Innovation and Development Center, we have been able to scale at a pace that we never thought possible. Funds raised from the current Series A round will be instrumental in elevating our trajectory even further. It allows us to invest heavily in both innovation and growth and, most importantly, bring us one step closer to commissioning the first-of-its-kind and globally unique Promyc Production Plant”, says Ramkumar Nair, Founder & Chief Executive Officer.
Ram in front of the Promyc Production Plant in progress, Falkenberg
In response to incredibly strong market trends within the alternative protein space, along with aggressive increases in the demand for Promyc, Mycorena commenced construction of the Promyc Production Plant (3P) in late 2021. Set to be operational in early 2023, it is on track to be the first-ever mycoprotein manufacturing facility in the Nordics since the invention of the industrial production of filamentous fungi, several decades ago. Located in Falkenberg, Sweden, it will have close proximity to several leading Nordic F&B manufacturers and gain access to a thriving landscape and ecosystem for food innovation.
“In a very short time, Mycorena has created a lot of interest around the company and their unique food ingredient, Promyc. Thanks to all investors believing in us - Mycorena is now able to fast-track the construction of its first large scale production plant in Falkenberg”, says Tore Sveälv, Chairman of the Board of Directors.
Founded by Ramkumar Nair in late 2017, Mycorena has evolved from an ambitious research spin-off into one of Europe’s fastest-growing and most innovative actors within the alternative protein space. With the closing of a historic Series A round, the FoodTech company is one step closer to realizing its vision of being the global leader in fungi technology to drive a sustainability revolution. The company has a reputation for innovation, launching several new "game-changer" products including the world's first Fungi-based Fat, along with the already successful Promyc.
Together with its partners from the food industry both in the Nordics and in Europe, Mycorena is now fuelling its commercial ambitions, gearing up its commercial product development efforts to launch vegan food products with Promyc as the key ingredient. Embracing the concept of hybrid products with Promyc and other plant-based ingredients, the company is also now working with several large food companies driving the ambition of launching consumer products that will be rolled out in the market nationwide during the year.
Mycorena fungi based fat ingredient