Mycel, a South-Korea-based startup developing mycelium materials for food and leather applications, has raised KRW 13 billion (~USD 10 million) in a pre-Series A funding round. Investors including Korea Development Bank, Industrial Bank of Kore, Zero 1 Fund (part of Hyundai Motors), and Stone Bridge joined the round. 

The funds will be used to open a production facility in South Korea and double its headcount to 42 employees. 

Mycel also reported that it is looking to partner with global cosmetic brands to use its mycelium leather and biomaterial in their products. 

Apart from leather, the company is also developing another fungi-based biomaterial for alt-protein products. Mycel aims to commercialize its mycelium leather product and enter Singapore for its alt-protein product in 2023.

Founded in 2020, Mycel is developing fungi-based biomaterials as substitutes for traditional leather and meat. The company’s mycelium leather alternative can be used in applications such as car seats, luxury cosmetic products, shoes, clothes, and bags. The company has identified 430 strains of mushroom and 13 strains of edible fungi and uses mutagenesis (change in DNA),  and gene-editing techniques such as CRISPR to develop them according to application-specific requirements. The company has not commercialized its product yet and is stated to have a pre-money valuation of KRW 50 billion (~USD 40 million) as of date.