MycoWorks banks $125m Series C funding to build alt-leather factory

Disclosure: AFN’s parent company, AgFunder, is an investor in MycoWorks.

• MycoWorks has raised $125 million in funding as it seeks to scale up production of its animal-free leather analog, Reishi.
• The Series C round was led by Prime Movers Lab. New investors participating in the raise included Innovation Fund, Mirabaud Lifestyle Impact, and SK Capital Partners, according to TechCrunch.
• MycoWorks produces Reishi using mycelium, the vegetative ‘roots’ of fungi. However, the Emeryville, California-based startup claims its material is stronger, more durable, and more adaptable than other so-called ‘mushroom leather’ products — which tend to be made from compressed mycelium — as it is custom-grown using a proprietary process.

Why it matters:

Until now MycoWorks has focused on marketing Reishi to luxury goods makers; for example, it has partnered with Hermès, which has created a travel bag made from the material.

However, CEO Matt Scullin said the startup will use some of the Series C funds to build a new factory in Union, South Carolina, which will allow it to begin producing Reishi at different price points for clients outside of the luxury goods market.

Find out why AgFunder invested in MycoWorks, here