The market for vegetarian and vegan products is booming. According to the Federal Statistical Office, 104,300 tons of meat substitute products were produced in Germany in 2022 - an increase of around 17% compared to the previous year. So far, plant-based proteins made from wheat or pulses such as peas and soy have dominated the market for meat-free alternatives. Biotech start-up Infinite Roots, on the other hand, uses mycelia from mushrooms to produce vegan meat substitutes. The young Hamburg-based company has now secured 58 million US dollars for this and for the development of new products from mushroom mycelium as part of a series B financing round.

Start-up wins Haribo and Rewe as investors

The financing was led by Dr. Hans Riegel Holding (HRH), one of the two shareholder holding companies of the Haribo Group, and supported by the European Innovation Council (EIC). "Infinite Roots' mycelium technology can make a very successful contribution to sustainable food supply," explains HRH Managing Director Reinhard Schneider. In addition to previous investors, the REWE Group and Betagro Ventures, the innovation arm of Thailand's leading agricultural company Betagro Group, are also involved in the financing round.

Europe's largest investment in mycelium technology

According to Infinite Roots, the financing is "the largest investment in mycelium technology in Europe and a particular success in the midst of one of the most difficult fundraising environments of the last 20 years". In developing the meat substitute, the team around company founder Mazen Rizk relies on the thread-like root network of fungi - the so-called mycelia. The fungal spores are cultivated and fed with waste such as rice husks and coffee grounds. A protein- and fiber-rich meat substitute is fermented in bioreactors.

Market launch planned for 2024

Infinite Roots was founded in 2018 under the name Mushlabs. The renaming took place in the run-up to the UN Climate Change Conference COP28 in Dubai, to which the Hamburg-based biotech company was one of only a few start-ups worldwide to be invited. "We are in a unique position to define a new era of products based on mushroom mycelium. With Infinite Roots' technology and products, we want to lead the change towards a more sustainable and healthier food system," says Mazen Rizk, CEO of Infinite Roots, describing the company's vision. The first products based on mushroom mycelium are to be launched on the market this year.

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