Ecovative Secures $60M to Revolutionize Fashion, Food & Packaging with Mycelium

The Potential of Mycelium: Ecovative Design Secures $60 Million in Funding

For over 14 years, Eben Bayer has been demonstrating the significant capabilities of mushrooms as a genuinely functional food source.

As the founder and CEO of Ecovative Design, Bayer has successfully developed mushroom mycelia into viable alternatives for various products. These include foam packaging, furniture components, leather-like materials, and even meat substitutes such as bacon – the company even constructed a small dwelling utilizing this technology.

Scaling Production and Expanding Applications

The company has recently obtained $60 million in funding to facilitate the development of novel applications for its mycelial products and to enhance the capacity of its existing business operations.

Ecovative Design’s primary focus currently lies within the packaging sector. This is where the company has concentrated its technological advancements for the longest period, and where its Styrofoam packaging alternatives have achieved the most substantial commercial success.

However, the potential of Ecovative’s mushrooms extends far beyond packaging. The company’s recent investors – including Viking Global Investors, alongside support from Senator Investment Group, AiiM Partners, Trousdale Ventures, and other undisclosed investors – are keen to explore the full extent of the company’s capabilities.

A Discovery Platform and Increased Manufacturing

A portion of the funding will be allocated to the creation of a discovery platform. This platform will be dedicated to identifying new materials and fungal strains, with the aim of establishing Ecovative as a leading force in the mushroom-based materials industry, comparable to Gingko Bioworks.

Additional funds will be used to construct a larger production facility, specifically designed to increase the output of mushroom materials.

The comparison to Gingko Bioworks is apt. Leveraging its manufacturing platform and extensive knowledge of fungi, Ecovative has already launched Atlast, a food company that secured $7 million to develop a plant-based bacon alternative derived from mushrooms.

Expanding into Fashion and Leather Alternatives

Ecovative also has its sights set on the fashion industry. A previous licensing agreement with Bolt Threads contributed to that startup’s efforts in producing a mushroom-based leather substitute in 2018.

Although that partnership concluded with disagreements and legal action, Ecovative is now pursuing independent development. The company intends to become a supplier of bulk leather replacements for items ranging from footwear to belts and jackets.

“There appears to be a demand for a supplier capable of providing scalable mushroom leather, rather than a branded provider,” Bayer stated.

Competition and Market Demand

Other companies are also striving to promote the adoption of mushrooms and other plant-based leather alternatives. These include Mycoworks, which raised $45 million to establish its own large-scale mycelial manufacturing operation, and Natural Fiber Welding, backed by Allbirds.

“The fashion industry’s need for innovative biomaterials, such as mycelium, currently exceeds the available supply. Ecovative is directly addressing this issue by investing in a next-generation platform capable of producing mycelium at scale,” commented Katrin Ley, managing director of Fashion for Good.

A Material Provider, Not a Branded Business

While Ecovative produces limited quantities of products under brands like Atlast, Bayer envisions the company primarily as a provider of raw materials. He aims for Ecovative to supply materials rather than focusing on creating branded products like shoes, packaging, or plant-based meat.

Recent Partnerships and Investor Confidence

This new funding follows Ecovative’s collaboration with Magical Mushroom Company, a U.K.-based packaging licensee. Magical Mushroom Company recently announced the opening of four additional facilities to serve the U.K. and EU markets with sustainable packaging solutions.

“Mycelium is a unique material that surpasses other sustainable alternatives in diverse industries, including fashion and food,” said Evan Lodes, partner at Senator Investment Group, who initially invested in Ecovative in 2019. “Ecovative has pioneered the field of mycelium materials and has dedicated resources to research and development, enabling it to deliver materials at the scale and cost required for significant impact.”