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While many alt-protein companies struggle to raise capital, Hamburg-based Infinite Roots (formerly Mushlabs) has secured capital from a major European retailer and the holding company behind Haribo to develop its mycelium. Obtained $58 million to expand its bio-fermentation platform.
The Series B round was led by Dr. Hans Riegel Holding (HRH), with support from the European Innovation Council (EIC) Fund, German retail giant REWE Group, and Betagro Ventures, the venture arm of Thai agri-food giant Vetrago. It was conducted.
The startup’s existing investors, including Clay Capital, FoodLabs, Redalpine, Simon Capital and Happiness Capital, also participated in the round, which the startup said is “Europe’s largest mycelium investment.”
“Securing an investment round of this size from an industry giant in a challenging funding environment is not only a testament to Infinite Roots’ technology and expertise, but also a huge win for innovation across the food industry. ” the company added. Founded in 2018, it has raised $73 million to date.
Asset light approach
Companies growing mycelial biomass include ENOUGH Foods (setting up a location in the Netherlands), Meati Foods (just opened a new location in Colorado, USA), MycoTechnology (planning a location in Oman), and Enifer (planning). Some of our startup friends are developing submerged fermentation for this purpose. (based in Finland) is building production in-house, but Infinite Roots has not built its own facility, founder Dr. Mazen Rizk said. agfunder news.
“We don’t own any production equipment because it requires a large capital investment. Capex has essentially shrunk to zero in this market, so we can use existing infrastructure to We believe that we can reduce the burden on customers and focus on generating revenue.We are also developing the technology to use them. [cheaper, more sustainable] It is supplied as a secondary source from the agricultural industry as a raw material such as spent grain in breweries. ”
Infinite Roots is currently working with contract manufacturers to grow the mycelium at pilot and industrial scales, with commercial doses expected to be available by the end of this year in preparation for launch.
The company has also entered into a strategic partnership with Bitburger Brewery Group to not only utilize spent grain as a raw material source, but also utilize its fermentation capabilities with some modifications to grow mycelium. The purpose is
“We are working on reusing the brewery’s infrastructure into our processes,” Rizk said. “There are some challenges here and there, but we’re making incredible progress and we think there’s a lot of great opportunity in this space, so that capacity will probably grow within the next 12 to 18 months. It will operate at commercial volumes.”
edible mushroom varieties
Like Mush Foods, MyForest Foods and MycoTechnology, Infinite Roots uses only edible mushroom strains in its biomass fermentation process, which greatly facilitates the regulatory pathway and consumer education process, he said.
“We do not use mold” [Quorn and ENOUGH use a fungi/mold strain called Fusarium venenatum in their meat alternatives, which is considered GRAS by the FDA and listed as ‘mycoprotein’ on food labels] I think that would be easier for consumers to understand.We basically use it [the roots of] Mushrooms you can buy at the supermarket.
“We also rely heavily on the flavor provided by the mushroom strains, rather than masking the taste, so we can create a minimally processed meat alternative with a very clean label.”
The company is still in discussions with EU regulators in this regard, but says that the use of mycelium from edible mushroom varieties means it is not producing a novel food and is therefore not subject to the onerous requirements of the EU Novel Foods Regulation. claims.
He said Infinite Roots’ products have self-affirmed GRAS (Generally Recognized as Safe) status in the U.S., and the company plans to notify the FDA of its decision to secure a “no questions asked” letter. It is said that there is.
Market development strategy
According to Rizk, Infinite Roots has “international ambitions. We work with a number of global partners and are working on going to market with some of them this year.”
He further added: “We’re looking at different business models, but at the heart of things, anything that uses our ingredients will either be a branded product or we’ll take an ‘insider information’ kind of approach. , we need to develop products around pea protein, rather than just alternative protein sources. ”
Rizk said there are no immediate plans to co-develop private label products with REWE, but Infinite Roots is working closely with new investors on strategy.
“They are a huge player in the market, so we have great insight on how to position ourselves and enter the market. He brings a lot of knowledge and experience in building and positioning different business models, which I think will be very beneficial.”
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