Myceen Secures €2M in Grants for Developing Mycelium-Based Building Materials

Myceen, a leading provider of mycelium-based building materials, is currently advancing its seed investment round, aiming to raise between €1-1.5 million. The funding will be pivotal for the company’s expansion as it transitions into a larger production facility. This move is crucial for scaling up production to meet the growing demand for sustainable building materials across Europe and beyond.

The investment round has garnered support from notable backers, including Enterprise Estonia, the Estonian Research Council, the German Ministry of Culture, and EIT Climate KIC. These supporters recognize the importance of Myceen’s mission, particularly as Europe intensifies its efforts to reduce greenhouse gas emissions by 55% by 2030 and achieve carbon neutrality by 2050. Myceen’s innovative mycelium-based materials offer a promising solution for the construction industry, which is under pressure to decarbonize rapidly.

As part of its growth strategy, Myceen plans to move into a pilot factory where it will develop and launch its industrial production technology. This expansion will not only increase production capacity but also allow the company to broaden its product range. The demand for Myceen's materials is already high, with several house producers and resellers eagerly awaiting the company’s products. This next phase of development will be critical for meeting that demand and advancing the commercialization of mycelium-based building materials.

The construction industry is facing a significant challenge in Europe, where around 75% of buildings are currently inefficient. With a target to renovate 35 million houses by 2030 to achieve carbon neutrality, there is a substantial market opportunity for sustainable insulation materials like those offered by Myceen. In cities such as Paris and London, properties must meet specific energy efficiency standards to be rented or sold—a trend that is becoming more prevalent as the climate goals deadline approaches. Myceen’s products are well-positioned to capitalize on this growing demand for sustainable building solutions.

Myceen’s journey began in the design sector, but the company has always maintained a strong research focus on building materials, where the potential for large-scale application and impact lies. Last year, Myceen successfully shipped its products to over 15 countries, ranging from the United States to Singapore, earning high recognition in the process. This global reach has demonstrated the appeal and viability of mycelium-based materials in diverse markets. Eve Peeterson, Head of Startup Estonia, expressed confidence in Myceen's trajectory: "Over the past years, I've seen Myceen experience rapid growth. I believe there's immense potential in the novel mycelium-based materials and innovative products they're developing. I'm excited to see what Myceen accomplishes next as they continue to conquer new markets.”

Petko Tashev, Co-Founder and Managing Director of The Home of Sustainable Things, praised Myceen's unique approach to mycelium design: "While Mycelium isn't a novel material to us, Myceen's design range is something to behold. Over the years, we have seen many designers attempting to tame this incredible, regenerative material and failing to do so. However, Myceen's consistency, quality, and style not only set this range apart but have also elevated mycelium design to levels previously unimagined.”

In an upcoming project, Myceen’s insulation materials will be tested in a pilot house in collaboration with the Timber Architecture Research Center (PAKK). The test house, expected to be completed by autumn 2024, will allow for the performance of mycelium insulation to be measured and compared with conventional materials. This data will provide critical feedback, helping Myceen to refine its products and move forward with house producers who are already in line for their materials. Myceen's progress marks a significant step forward in the development and commercialization of sustainable building materials. As the company scales up, it is poised to play a crucial role in helping Europe—and the world—achieve its ambitious climate goals.