Israeli startup MadeRight has raised $2 million in seed funding to further develop its fungi-based packaging solutions.
The startup has created a solid-state fermentation process where mycelia turn industrial organic waste into biomass. Materials are then extracted from this biomass to form pellets that can be used in existing packaging manufacturing machines. When combined with bioplastics, the pellets have the potential to significantly improve performance and sustainability.
The seed round was led by the incubator Fresh Start, with participation from Arkin Holdings and Arc Impact. It will be used to expand MadeRight’s development team, refine the production process, and enter new markets, with the goal of producing a commercially viable prototype by the end of 2024.
“The great potential of MadeRight’s solution is to close gaps that hold us back from making the required transition to non-polluting and sustainable packaging materials while maintaining sustainable production processes themselves, and leveraging the wonderful natural qualities fungi have to offer,” said Noga Sela Shalev, CEO of Fresh Start.
“Innovative interdisciplinary approach”
MadeRight was founded by mycology expert Rotem Cahanovitc and molecular geneticist Yotam David, with the aim of tackling plastic pollution without compromising on performance or affordability. The startup has already won three awards — the Unilever Sustainable Challenge Award, the Mass Challenge 22 Cohort, and Disrupting The Future Of Plastics.
MadeRight is not the only company using fungi to make packaging; US-based Ecovative has created a compostable styrofoam alternative made from mycelium and hemp hurd. In the UK, Biohm has developed a similar process to make regenerative construction materials from mycelium and food waste.
“Through our innovative interdisciplinary approach, we’ve developed a circular economy model that leverages organic industrial waste as a nutrient source for cultivating fungi,” says MadeRight on its website. “Our scalable solutions result in the production of high-quality, sustainable materials that can meet the packaging needs of any industry.”
