Mycocycle, a biotechnology startup inspired by nature, has raised $2.2 million in seed funding, bringing their total funds raised to $3.7 million. The funding round, led by Anthropocene Ventures, includes investments from the TELUS Pollinator Fund for Good, Alumni Ventures, and Telescopic Ventures, among others.
With this new capital, Mycocycle plans to expand its team by hiring five new roles, including a vice president of research and innovation and a vice president of operations and product development. They also intend to establish a model pilot facility to enhance operational capabilities and develop their first-generation decentralized treatment container, called MYCOntainer. This container will increase Mycocycle's capacity to serve customers beyond their worksites. The company expects to validate their biobased byproduct by the third quarter of 2023.
Mycocycle has already treated 12,000 pounds of material through paid pilots with customers in the waste management, recycling, and manufacturing sectors. They have also partnered with building owners and contractors like META and Lendlease, who are committed to reducing their Scope 3 emissions.
The waste sector represents a crucial opportunity for reducing global emissions, especially as efforts increase to limit global warming. In the United States alone, the construction and demolition (C&D) industry generates 660 million tons of waste annually, more than twice the amount of municipal solid waste (MSW). With landfills reaching 85 percent capacity and global construction on the rise, diverting waste within the C&D industry and promoting circularity has become imperative.
Mycocycle, based in Bolingbrook, Illinois, addresses waste mismanagement by converting industrial waste into new raw materials. They utilize mycelium, a fungal root structure known for its fire and water resistance, insulation properties, and lightweight nature. Mycocycle's patent-pending technology optimizes the natural functions of fungi to detoxify and transform various waste materials found in the built environment, such as asphalt shingles, insulation board, crumb rubber, gypsum drywall, and fibers. These materials often contain petroleum-derived chemicals that can cause environmental contamination if burned or buried. Mycocycle's process neutralizes toxicity while producing renewable, low-carbon, mycelium-based raw materials. By driving circularity in the construction supply chain, they divert waste from landfills and reduce the need for extracting virgin materials from nature.
The three-phase process employed by Mycocycle takes approximately two weeks. It involves blending lab-cultivated fungi with ground waste materials, allowing them to grow and incubate for 7-14 days. The mycelium is then harvested and processed into new low-carbon raw materials, such as fillers and fibers, for use in the building products industry. On average, Mycocycle's solution reduces material toxicity by up to 98 percent. The global mycelium market is expected to reach $3.84 billion by 2026, and Mycocycle's innovative solution is poised to create a new market of biobased raw materials for the building materials industry.
Anthropocene Ventures, the lead investor, emphasizes their commitment to investing in companies that align the economy with the planet's ecology. They believe that Mycocycle's waste-diverting solution reflects this commitment and presents profitable opportunities. They see Mycocycle as an important player in the fight against climate change, addressing significant opportunities for decarbonization and circularity within the waste management, construction, and manufacturing industries.
