In South Korea, mushroom-based material startup Mycel has raised $10 million in a pre-Series A funding round. A spin-off from Hyundai Motor’s in-house startup program, Mycel uses mycelium, the root-like structure of mushroom, to make leather substitutes for products like car seats, shoes, cosmetics, and clothes.
Company cofounder and CEO Sungjin Sah tells TechCrunch the company is in talks with brands and hopes to begin sales for mushroom leather in 2023. The funds will be used to scale production and add employees.
Investors in the funding round include Korea Development Bank, Industrial Bank of Korea, Hyundai Motor’s Zero 1 Fund, Stone Bridge, We Ventures and Spring Camp.
Shah says the company’s pre-money valuation is approximately $40 million.