UK-based startup Magical Mushroom Company has raised around €3.4 million in a seed round led by mycelium specialist Ecovative Design with participation by Dale Vince, founder of green energy company Ecotricity.
“Our work is about making a case for modernity and industry. And the only way to do that is to call an end to unnecessary waste and pollution.”
Founded in 2019, Magical Mushroom Company produces hundreds of thousands of pieces of packaging for international brands including BA Components, Castrads, Ffern, Selfridges, Lush, Seedlip and ID Watch. The startup combines agricultural waste with mycelium to create packaging that is biodegradable, durable and comparable in price to conventional, unsustainable packaging. The product breaks down naturally in the ground in around 45 days without added additional chemicals.
The funds will be invested in the opening of Magical Mushroom Company’s first raw material production plant in Nottinghamshire, as well as to upscale existing packaging plants in the UK and Bulgaria.
The company states that “From the beginning, we’ve been determined to bring high-volume production capability to sustainable materials. It’s only by delivering at volume that we can help rid the world of plastic pollution.
“Our work is about making a case for modernity and industry. And the only way to do that is to call an end to unnecessary waste and pollution. We set this company up to make the ideal of sustainable material real. Having a viable alternative to polymers in theory is one thing. Bringing it to market at scale is another. Which is why we believe our technology is only 10% of the answer. The other 90% is in the rigour of process and production.”
Paul Gilligan, CEO & founder at Magical Mushroom Company, commented to EU Startups.com: “We have just eight years to meet the UN’s Sustainable Development Goals and businesses have a crucial role to play – but they need viable and cost-effective solutions that significantly reduce the carbon footprint across their entire supply chain. We’re proud to be creating value from waste and unlocking the potential of mycelium – a resource that has been untapped to date. We’re delighted to have the support of a brilliant group of investors who have a wealth of experience in driving sustainable change and share our vision for the future of packaging solutions. The magic of mushrooms is only just being realised and we can’t wait to make it mainstream.”
