San Francisco-based, Michroma, has raised $6.4 million in seed funding in a round led by Supply Change Capital. The company has also received participation from investors such as Be8 Ventures, FEN Ventures, Portfolia’s Food & Ag Tech Fund, and Groundswell Ventures, among others.
According to Noramay Cadena, Managing Director of Supply Change Capital and Michroma board member, there is a significant market and consumer potential for Michroma’s fungal platform to create healthier and more sustainable natural ingredients, ranging from colorants to flavors while also maximizing production efficiency. In addition, Cadena is impressed by the speed and expertise with which Michroma is expanding its capabilities and believes that, given the global supply chain disruptions, the company is setting the stage for the sustainable ingredients of the future.
Michroma is a pioneer in designing fungal-based biofactories to create sustainable, scalable, and cost-effective natural elements. The company’s CEO, Ricky Cassini, is committed to replacing petroleum-based components with fungal-based ingredients that are better for human and environmental health.
According to him, the company is well-positioned to meet the demand for healthier and more sustainable food without relying on petroleum-based components. In addition, unlike current natural alternatives, such as betalains, carminic acid, and anthocyanins, which can be hazardous, Michroma offers superior natural colorants powered by fungi. With the new funding, the company can further develop its fungal platform and play a role in the shift towards natural colors worldwide.
The funds raised from this seed round will rev the commercialization of sustainable natural colorants, expand R&D capabilities, and broaden the company’s ingredient platform. Michroma has already completed prototyping with some of the world’s largest food companies and is currently negotiating agreements for ingredient distribution.
As the company continues its path to scale, Michroma will submit color additive petitions to the FDA and EFSA. The authorization will enable the company to bring its fungal-based ingredients to the market, providing consumers with more sustainable and healthier food options.
Image provided by Michroma
