Mycel

Mycel, a South Korean biomaterials company, was established in 2020 as a spin-off from the Hyundai Motor Group. The company was co-founded by CEO Sungjin Sah. Mycel operates in the growing market for sustainable materials, which is projected to reach approximately $2.2 billion by 2026.

The firm specializes in developing and producing bio-based materials derived from mycelium, the root-like structure of mushrooms. Its business model focuses on creating environmentally friendly alternatives to traditional materials for a diverse client base that includes the fashion, automotive, and cosmetics industries. Mycel also develops alternative proteins, positioning itself as a competitor to fungi-based food producers. The company generates revenue through business-to-business sales and collaborations with global brands to co-develop products.

Mycel's core product is a portfolio of fungal-based biomaterials. These materials can be manufactured to serve as substitutes for both leather and meat. The mycelium-based leather alternative is designed for applications in car seats, fashion accessories like shoes and bags, and luxury cosmetic product packaging. This material is noted for its durability and flexibility, which are comparable to animal leather. Unlike synthetic leathers that often rely on chemical blending, Mycel's process utilizes the natural intertwining properties of mycelium. For the food sector, the company produces a mycoprotein that offers a meat-like texture and is white and odorless, making it a versatile ingredient for a variety of food products. The production process for these biomaterials uses significantly less water and produces fewer carbon emissions compared to animal-based material processing.

In August 2022, Mycel secured $10 million in a pre-Series A funding round from investors including Korea Development Bank, Industrial Bank of Korea, and Hyundai Motor's Zero 1 Fund, which brought the company's pre-money valuation to approximately $40 million. This capital was allocated to establish a production plant in South Korea to scale up manufacturing and to expand the team. The company aimed to commercialize its mushroom leather in 2023 and has plans to enter the Singapore market with its alternative protein products. Keywords: mycelium, biomaterials, alternative leather, alternative protein, mycoprotein, sustainable materials, Hyundai spin-off, biotech, circular economy, fungi-based products, biomanufacturing, eco-friendly materials, Sungjin Sah, Anolea, vegan leather, food tech, material science, green technology, cleantech, South Korean startup