Natalie Portman and John Legend are among a group of venture capitalists and prominent fashion houses providing financial support to MycoWorks, a company that has recently secured $45 million in funding to advance the commercial viability of its innovative technology. This technology produces a biomaterial derived from fungi, designed as a substitute for traditional leather.

The intention is to encourage a shift among consumers, moving them away from leather and exotic skins towards fashion items crafted from fungal sources.

The company reports establishing partnerships with several major fashion brands as it prepares to introduce its unique fungal material into the market, featuring in items such as footwear, wallets, belts, and other products typically made from animal hides.

“We’ve been engaged in close collaborative efforts with a select number of luxury brands and a leading footwear manufacturer,” explained Matt Scullin, the chief executive officer of MycoWorks.

According to Scullin, these undisclosed fashion brands have already begun manufacturing products for retail distribution, encompassing a variety of goods including shoes, apparel, and handbags.

MycoWorks distinguishes itself from other companies developing alternative, bio-based materials for the fashion industry – such as Bolt Threads (utilizing mushrooms), Ananas Anam (employing pineapple fibers), and Desserto (producing cactus leather) – by emphasizing the superior durability of its material.

“Extensive testing has been conducted on our product across a broad spectrum of applications, ranging from leather-based clothing to upholstery and conventional leather goods like purses and wallets. A key distinction between our material and mushroom leather lies in the high integrity of its structural components,” Scullin stated. “We are confident in the material’s ability to perform reliably in numerous applications, offering a wide range of potential uses.”

Consequently, MycoWorks is concentrating its efforts on the higher end of the market. “There is a common misunderstanding that brands are prepared to compromise on performance in the pursuit of sustainability, but this is not the case,” Scullin clarified. “True adoption within the industry happens when the material delivers on performance expectations.”

Scullin refrained from disclosing the cost of the MycoWorks material or identifying the specific companies currently utilizing its product. He did mention that the company aspires to eventually achieve price parity not only with traditional leather but also with the plastic-based alternatives used as leather replacements, a market valued at $70 billion annually.

Currently, MycoWorks’ production capacity allows for the creation of tens of thousands of square feet of fungal material each year, as stated by Scullin. This indicates that the company still has considerable ground to cover to match the scale of an industry that produces billions of square feet of leather.

While the funding secured by MycoWorks is substantial, it also faces competition from other companies gaining momentum in the fashion sector.

In October, Bolt Threads announced the formation of a consortium, including long-standing partners Adidas, Stella McCartney, and the parent company of Balenciaga, to explore the possibilities of mushroom leather-based products.

For MycoWorks’ investors – including WTT Investment Ltd. (Taipei, Taiwan), DCVC Bio, Valor Equity Partners, Humboldt Fund, Gruss & Co., Novo Holdings, 8VC, SOSV, AgFunder, Wireframe Ventures and Tony Fadell – the competitive landscape is anticipated. However, they maintain that MycoWorks’ functionality positions it as a leader in the realm of leather substitutes. 

“The mycelial leather we produce is adaptable to meet specific client requirements,” explained Kiersten Stead, an investor at DCVC Bio. “[It’s] customizable in terms of its form and application, and pricing will be determined by the specific application and customer criteria.”

In total, MycoWorks has raised $62 million, and the announcement of its latest funding coincides with the opening of a new production facility in Emeryville, California, which has increased its capacity to tens of thousands of square feet of fungal leather replacement material per year.

Underlying this drive to find alternatives to animal skins is a growing recognition of the environmental and health concerns associated with conventional leather manufacturing. The tanning and dyeing processes, as well as the disposal of both animal leather and its plastic substitutes, are known to be highly polluting and toxic.

“The process of cultivating mycelium is actually carbon negative. Customers will naturally prefer [our product] over animal hide, recognizing the benefits,” said Scullin. “Furthermore, the non-animal and plastic-free aspects are increasingly important factors in consumer decisions… we provide our brand partners with an advanced manufacturing solution. We are driven by sustainability and offer a means for them to transform their supply chains.”