The Mushroom Material team
Mushroom Material, a startup that converts agricultural waste into eco-friendly packaging, has secured over US$5 million in seed funding led by Wavemaker Partners and SEEDS Capital.
Icehouse Ventures, K1W1, and Black Kite Capital participated.
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The investment is being used to establish a 1,300-sqm pilot plant in Auckland’s Mount Roskill in New Zealand.
Founded in 2020 by Shaun Seaman and Jotinder Singh, Mushroom Material harnesses the power of mycelium—mushrooms’ root structure—to create a sustainable alternative to polystyrene (Styrofoam).
The startup grows millions of fungi-based pellets, which are then coated in a binding agent, allowing them to be shaped into customised packaging solutions. This technology addresses scalability and cost-effectiveness.
Its packaging solution is compostable, offering shock absorption, low density, and natural water resistance. It can be produced from various organic materials, including food waste, cardboard, and agricultural waste, such as hemp, straw and wood chips.
According to the greentech startup, over 200 companies have expressed interest in purchasing its products. Mushroom Material plans to start delivering orders to existing customers in 2025.
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“At Mushroom Material, we aim to bridge the gap between the packaging industry’s need for scalable, cost-effective solutions and society’s demand for environmental sustainability. Our mission is to scale this technology to meet global demand for eco-friendly packaging, delivering superior material characteristics while maintaining uncompromised sustainability,” said CEO Seaman.
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Image Credit: Mushroom Material.
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