Ecovative Raises $60 Million as Startup Utilizes Mushrooms Across Multiple Business Types

By Thomas Price | Tuesday, 30 March 2021 | Startup, Science/STEM

With industries of all different types working toward creating a more sustainable business model, new materials are needed. While several companies are working in the field, very few are doing what startup Ecovative is doing. The mycelium technology startup has been making huge waves across several different business types through their fungus-based products. Ecovative recently raised strong funding in their Series D round as the startup looks to continue expanding its business operations to a larger global consumer base.

What Ecovative Does and Ongoing Success

Ecovative is a mycelium technology startup that has created several different fungus- and mushroom-based products with a variety of applications. The startup has produced several different items, including Mushroom Packaging. In addition, the company uses a combination of hemp and mycelium to create both custom and standard packing products that are 100% biodegradable. This serves as a sustainable alternative to traditional Styrofoam, plastic, or paper-based packing materials. Luckily for Ecovative, several companies have already begun utilizing Mushroom Packaging at scale.

Outside of packing materials, Ecovative’s MycoFlex technology serves as a sustainable foam that has business applications in apparel as insulation or other high-performance foam in footwear. The company also offers MycoFlex to skincare businesses as an eco-friendly foam alternative for applying different facial products. Forage Hides serves as a fungus-based leather alternative for the company that also has significant fashion business potential.

Ecovative has also ventured into the food industry as well through their At Last brand. By replacing traditional meat products with mushroom alternatives, At Last serves as a stepping stone to more environmentally friendly options to industrial beef and chicken production.

The success of their multi-faceted business model has led not only to partnerships with major companies such as Ikea, Dell, and Delta 8, but has catapulted their production into overdrive. In fact, the startup recently activated an additional 100,000 pounds of new product a year in order to keep up with the mounting demand.

Ecovative’s Funding Round and Future Plans

In Ecovative’s Series D funding round, the startup raised $60 million. The funding round was led by Viking Global Investors with participation from Senator Investment Group, AiiM Partners, Trousdale Ventures, and other smaller investors. This funding will be used to further increase the scale of production. With the additional $60 million, production could increase tenfold from where it currently stands.

Ecovative is also leading what could be a veritable mushroom revolution in the future as the global mushroom market is set to be worth $86.6 billion by 2025. This comes off the back of the growing movement to use mushrooms as a meat alternative and for practical application of fungi in packaging and other fields that Ecovative already has standing in.

When commenting on the recent funding round, co-founder and CEO of the company, Eben Bayer, said, “Today's investment in our next-generation Mycelium Foundry will produce immediate results for our business and the planet. We have a track record of scaling and shipping mycelium-based products. This growth will accelerate our deployment of these important solutions at greater scale and across more industries.”

About the Author

Thomas Price

Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.