Top 10 Fungi Startups Transforming Materials, Food and Medicine in 2025

Last updated: March 8, 2025 | 9 minute read

Fungi have been quietly shaping our planet for over a billion years, breaking down organic matter and helping create the soil that sustains terrestrial life. Yet we've barely begun to tap into their potential. These remarkable organisms—neither plant nor animal—represent one of the most unexplored frontiers in biotechnology.

The mycological revolution is finally here, and it couldn't come at a better time. As we grapple with climate change, resource depletion, and environmental contamination, fungi offer sustainable solutions for everything from packaging materials to protein production, soil remediation to pharmaceuticals.

We've been tracking the fungi innovation space for years, and the recent explosion of mycotech startups has been nothing short of extraordinary. These companies are demonstrating that fungi aren't just for mushroom enthusiasts—they're a serious technology platform with transformative potential.

The Remarkable Versatility of Fungal Biotechnology

What makes fungi so valuable as a biological resource? The answer lies in their unique biology and remarkable versatility.

Fungi grow through networks of thread-like cells called mycelium, which can be coaxed into forming complex three-dimensional structures with useful properties. These structures can be engineered to create materials with specific characteristics—strong yet lightweight, water-resistant, insulating, or biodegradable.

Beyond materials, fungi are masters of biochemistry, producing powerful enzymes that break down tough substances and synthesizing valuable compounds. Some fungi can transform agricultural waste into protein-rich food. Others produce antimicrobial compounds that could help address antibiotic resistance.

Perhaps most impressively, certain fungi can remediate contaminated environments, breaking down pollutants from oil spills to plastic waste. Their natural capacity for environmental cleanup represents one of our most promising tools for ecosystem restoration.

The commercial applications span nearly every industry: sustainable packaging, meat alternatives, textile production, building materials, bioremediation, and pharmaceutical discovery. And we're just beginning to understand what's possible.

Top 10 Fungi Startups Leading the Mycelium Revolution

Here are the companies at the forefront of fungal biotechnology, developing innovations that could reshape multiple industries.

1. MycoWorks

San Francisco-based MycoWorks has developed a groundbreaking material that's poised to disrupt the luxury goods industry. Their Fine Mycelium™ technology creates a leather alternative so convincing that premium fashion houses are incorporating it into high-end products.

Unlike most synthetic leathers, MycoWorks' material isn't plastic-based. Instead, it's grown from mycelium cells that self-assemble into a complex, interlocking structure similar to animal leather. The result is a material with comparable performance characteristics to traditional leather—breathable, durable, and accepting of finishes and embossing—but with a fraction of the environmental impact.

"The fashion industry finally has an animal-free material that doesn't compromise on quality," a luxury brand executive told us after partnering with MycoWorks. "We couldn't tell the difference in blind tests with premium cowhide."

The company recently opened a full-scale production facility capable of manufacturing millions of square feet of material annually. With major partnerships already announced with several luxury brands, MycoWorks is demonstrating that mycelium materials can compete at the highest levels of consumer goods.

2. Ecovative

The original mycelium materials pioneer, Ecovative has been developing fungal technologies since 2007. After establishing themselves with sustainable packaging materials that replace Styrofoam, they've expanded into textiles, food, and advanced materials.

Their MycoFlex foam alternative uses mycelium to create customizable cushioning for everything from furniture to footwear. Unlike petroleum-based foams, MycoFlex is biodegradable and produced with minimal carbon emissions.

Ecovative's most recent breakthrough is their MycoComposite technology, which combines agricultural waste with mycelium to create structural materials for construction. These materials are fire-resistant, provide excellent insulation, and sequester carbon throughout their lifespan.

"We're seeing tremendous interest from architects and builders who want carbon-negative materials," their head of construction materials explained. "Our panels aren't just environmentally friendly—they outperform conventional materials in several performance categories."

Through their Mycelium Foundry, Ecovative also licenses their technologies to other companies, accelerating the broader adoption of fungal materials across industries.

3. Fungi Perfecti

Founded by renowned mycologist Paul Stamets, Fungi Perfecti has evolved from a mushroom cultivation company into a leader in fungal bioremediation and health applications. Their mycoremediation technologies use specialized fungi to break down environmental contaminants ranging from petroleum hydrocarbons to pesticides.

Their MycoBooms and MycoMats products contain mycelium specifically selected for their ability to digest oil compounds. When deployed for spill containment, these products not only capture oil but actively break it down into less harmful compounds. The technology has been successfully tested in collaboration with the EPA and various environmental response agencies.

On the health front, their Host Defense line of mushroom supplements has pioneered research into the immune-supporting properties of medicinal fungi. Recent clinical trials have demonstrated significant immune benefits from their formulations, expanding the scientific foundation for fungal nutraceuticals.

"Fungi Perfecti represents the perfect bridge between ancient wisdom about medicinal mushrooms and modern scientific validation," noted a researcher in integrative medicine who's collaborated with the company.

4. Atlast Food Co

A spinoff from Ecovative, Atlast has focused exclusively on applying mycelium technology to food production. Their flagship product, MyBacon, uses mycelium grown in specific conditions to mimic the texture and flavor of meat.

Unlike most plant-based meat alternatives that rely on heavily processed ingredients, Atlast's approach grows whole-cut meat alternatives as a single piece. This results in products with the complex texture and mouthfeel of animal muscle tissue—something that's been the holy grail of alternative proteins.

"We're not trying to create a compromise product that vegetarians will tolerate," their food innovation director explained to us. "We're creating whole-cut meat alternatives that satisfy everyone, including committed meat-eaters."

The company recently completed a 80,000-square-foot production facility capable of producing millions of pounds of mycelium-based food products annually. Their technology has attracted partnerships with major food companies looking to expand their plant-based portfolios with more convincing meat alternatives.

5. MycoTechnology

Colorado-based MycoTechnology has harnessed fungi's flavor-modifying capabilities to address major challenges in the food industry. Their flagship product, ClearTaste, uses mycelium fermentation to block bitter taste receptors, reducing the need for added sugar in food products.

This technology has proven particularly valuable for plant-based proteins, which often have bitter flavor notes that require masking. By fermenting pea and rice proteins with specific fungal strains, MycoTechnology creates ingredients with improved taste profiles and increased protein bioavailability.

Their newest product line, FermentIQ, combines mycelium fermentation with plant proteins to create complete protein ingredients with all essential amino acids. These ingredients are finding applications in everything from dairy alternatives to meat substitutes.

"What makes their technology so valuable is that it solves multiple problems simultaneously," a food industry consultant told us. "Better taste, better nutrition, and cleaner labels—all from a natural fermentation process."

6. Mycorena

Swedish startup Mycorena has developed a unique fungi-based protein called Promyc that's rapidly gaining traction in European food markets. Their fermentation technology transforms industrial food processing byproducts into high-quality protein with minimal environmental impact.

What distinguishes Promyc is its flexibility as a food ingredient. It can be textured to mimic everything from ground meat to seafood, making it adaptable across diverse food applications. The neutral taste profile allows it to take on various flavors, while its fibrous structure provides the satisfying mouthfeel consumers expect from meat.

"Traditional plant proteins like soy and pea have fundamental limitations in texture," their chief science officer explained. "Fungi naturally grow with a meat-like structure, giving us a significant advantage in creating convincing alternatives."

Mycorena recently secured major partnerships with several European food manufacturers and opened one of the continent's largest fungi protein production facilities. With production costs now competitive with conventional meat, they're demonstrating that fungal proteins can scale to meet global demand.

7. Bolt Threads

Best known for their Microsilk technology, which produces spider silk proteins through fermentation, Bolt Threads has also developed a pioneering mycelium material called Mylo. This leather alternative is created by growing mycelium on beds of agricultural waste products, then processing it into a durable material with leather-like properties.

Mylo has already appeared in products from leading brands including Stella McCartney, Adidas, and Lululemon. Unlike synthetic leathers, which typically contain plastics, Mylo is primarily composed of renewable biological materials and is designed to biodegrade at the end of its useful life.

The company's materials science team has continuously refined the Mylo manufacturing process, improving its durability and reducing production costs. Their newest generation of mycelium leather achieves performance characteristics that meet or exceed many animal leathers while maintaining consistent quality—something that's often challenging with natural materials.

"What Bolt Threads has accomplished with Mylo is remarkable," a materials innovation specialist at a major fashion brand told us. "They've created a biofabricated material that delivers on performance, aesthetics, and sustainability."

8. Mycoplast

Amsterdam-based Mycoplast is revolutionizing plastics by creating fully biodegradable polymers from fungal mycelium. Their technology transforms agricultural waste into bioplastics with properties similar to conventional plastics but without the environmental persistence.

Their MycoBlend materials can be molded, extruded, or thermoformed using standard plastic manufacturing equipment, making them easy for industries to adopt. Depending on the formulation, their materials can mimic everything from rigid polystyrene to flexible polyethylene.

What sets Mycoplast's approach apart is their focus on competitive pricing. By using waste streams as feedstock and developing highly efficient fermentation processes, they've achieved production costs comparable to mid-range conventional plastics—something previous bioplastics have struggled to accomplish.

"The holy grail in sustainable materials has always been matching performance and price while improving environmental impact," their founder explained during a recent manufacturing conference. "We're finally achieving that trifecta with fungal biopolymers."

9. Mycel

South Korean startup Mycel has developed specialized strains of fungi capable of breaking down persistent environmental pollutants, including plastics, PFAS (per- and polyfluoroalkyl substances), and industrial chemicals. Their MycoRemediation platform deploys these fungi in contaminated sites to accelerate natural degradation processes.

Their technology has been successfully demonstrated in pilot projects cleaning up everything from industrial waste sites to microplastics in soil. By engineering fungal strains specifically adapted to target chemical pollutants, they've achieved breakdown rates significantly faster than natural processes.

What makes their approach particularly valuable is its minimal environmental footprint compared to conventional remediation techniques. Rather than excavating and transporting contaminated materials to treatment facilities, Mycel's solutions can often be applied directly on-site.

"Conventional remediation is enormously energy-intensive and disruptive," an environmental engineer told us after using Mycel's technology at a contaminated industrial site. "Their fungal approach accomplished the same pollution reduction with a fraction of the carbon footprint."

10. Mushroom Materials

California-based Mushroom Materials has focused on applying mycelium technology to building and construction products. Their MycoInsulation provides thermal and acoustic performance comparable to conventional insulation but is fire-resistant, non-toxic, and carbon-negative.

Unlike foam insulations, which typically use petrochemicals and flame retardants, MycoInsulation is grown from agricultural waste bound together by mycelium. The resulting material doesn't off-gas harmful compounds and actually sequesters carbon throughout its lifespan.

The company has also developed structural panels that can replace oriented strand board (OSB) and other engineered wood products typically used in construction. These panels achieve similar strength characteristics while eliminating the formaldehyde and other adhesives used in conventional wood composites.

"The building industry desperately needs sustainable alternatives to current materials," a green building certification specialist told us. "Mushroom Materials is creating products that meet building codes while dramatically reducing embodied carbon."

The Future of Fungal Biotechnology

As we continue tracking developments in this field, several trends stand out. First, scaling challenges are being solved through improved bioreactor designs and cultivation techniques. Second, automated manufacturing processes are reducing production costs to competitive levels. Finally, performance characteristics continue to improve as companies gain deeper understanding of how to control mycelial growth.

The regulatory landscape is also evolving favorably. Several jurisdictions have created new frameworks specifically for novel biofabricated materials, providing clearer pathways to market. Major corporations are increasingly willing to incorporate fungal materials, driven by consumer demand for sustainable products and corporate carbon reduction commitments.

Perhaps most promising is the cross-pollination happening between fungal biotechnology and other fields. Collaborations with synthetic biology companies are yielding engineered fungi with enhanced capabilities. Partnerships with advanced manufacturing firms are creating novel production methods. The fungal biotechnology ecosystem is becoming increasingly sophisticated.

As one venture capital investor specializing in biomaterials told us: "Fungi represent nature's ultimate recycling and manufacturing system. We're just beginning to understand how to work with these organisms rather than against them."

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Want to discover more innovative companies transforming our relationship with nature? All of these fungi pioneers are part of our comprehensive NatureTech database, along with hundreds of other startups using technology to protect and regenerate the natural world.

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